Motel 6 vs Centerstone Franchise Comparison
Below is an in-depth analysis and side-by-side comparison of Motel 6 vs Centerstone including start-up costs and fees, business experience requirements, training & support and financing options.
Start-Up Costs and Fees |
Investment |
$206,850 - $8,823,850 | $47,149 - $8,728,147 |
Franchise Fee |
$25,000 - $35,000 | $17,000 |
Royalty Fee |
5% | 2% |
Advertising Fee |
3.5% | 2% |
Year Founded |
1962 | 2012 |
Year Franchised |
1996 | 2012 |
Term Of Agreement |
10-15 years | as low as 3 years |
Term Of Agreement |
10-15 years | as low as 3 years |
Renewal Fee |
50% of current franchisee fee | - |
Business Experience Requirements |
Experience |
General business experience | - |
Financing Options |
|
In-House/3rd Party | In-House/3rd Party |
Franchise Fees |
No/Yes | -/- |
Start-up Costs |
No/Yes | -/- |
Equipment |
No/Yes | -/- |
Inventory |
No/Yes | -/- |
Receivables |
No/No | -/- |
Payroll |
No/No | -/- |
Training & Support |
Training |
On-The-Job Training: 25-30 hours
Classroom Training: 40 hours
Additional Training: Annual convention
| - |
Support |
Purchasing Co-ops
Newsletter
Meetings/Conventions
Toll-Free Line
Grand Opening
Online Support
Security/Safety Procedures
Field Operations
Proprietary Software
Franchisee Intranet Platform | - |
Marketing |
Co-op Advertising
Ad Templates
National Media
Social media
SEO
Website development
Email marketing
Loyalty program/app | - |
Operations |
10% of all franchisees own more than one unit Number of employees needed to run franchised unit: 10 - 20
Absentee ownership of franchise is allowed. (70% of current franchisees are owner/operators)
| - |
Expansion Plans |
US Expansion |
- | - |
Canada Expansion |
No | - |
International Expansion |
Yes | - |
Company Overviews
About Motel 6
We'll Leave the Light on for You!
Thanks to one of the most successful ad campaigns in the history of the hotel industry, Motel 6 enjoys strong brand awareness and high guest loyalty. After more than 40 years, Motel 6 is still a true American icon and continues to outperform the competition.
Founded in 1962 in Santa Barbara, California, Motel 6 is synonymous with a great travel value. The first Motel 6 in Santa Barbara still leaves the light on today, but a lot has changed for the motel chain that pioneered the first real economy motel designed for the no-frills traveler.
The original price of a night's stay at Motel 6 was just $6.00, and thus established the brand name for an American classic.
The promise of the lowest price of any national chain and a clean, comfortable room are Motel 6 virtues. Motel 6 is a household name, synonymous with quality and value. It enjoys the highest brand recognition factor of any economy lodging brand.
The brand continues to grow and currently has approximately 1,200 locations with more than 120,000 rooms in the United States and Canada. Part of G6 Hospitality, Motel 6 is the largest owned and operated hotel chain in North America.
Franchisor is seeking new franchise units throughout the U.S. and Asia, Canada, Central America, Mexico and South America
The total investment necessary to begin operation of a newly constructed
100 room Motel 6 Motel (excluding land acquisition costs) is $6,891,850
to $8,823,850 and a conversion 100 room Motel 6 Motel (excluding land
acquisition costs) is $206,850 to $2,106,050. This includes $33,850 in
fixed pre-opening fees, which must be paid to the franchisor or their
affiliates.
Veteran Incentives $1,500 for training
#96 in Franchise 500 for 2020.
#197 in Franchise 500 for 2021.
About Centerstone
At Centerstone we offer 3 concepts:
Centerstone Inns & Suites
Centerstone Inns are an economy based product that represents exceptional value to its guests. A typical Centerstone Inn would have a minimum of two diamond/star like quality. Typically, it does not include a restaurant and bar and has an average size of 75 rooms.
A Centerstone Inns & Suites is basically the same as a Centerstone Inns with 20% or more of its inventory being suites, versus standard guest rooms.
Centerstone Hotel
A Centerstone Hotel is typically a minimum of three diamond/star like quality that competes in the mid market and brings exceptional value to its customers. Most Centerstone Hotels are full service and provide a restaurant, lounge, meeting rooms and other related services. Waivers are available for restaurants providing a free breakfast buffet is offered. A typical Centerstone Hotel is interior corridor and mid-rise to high-rise with approximately 125 rooms or more.
Centerstone Plaza Hotel
A Centerstone Plaza Hotel is typically a four diamond/star like quality product that has an immediate wow factor and competes in the high end of the mid tier sector. A Centerstone Plaza Hotel is designed for the more discriminating value conscious traveler. Typically these properties are 150 rooms or larger, full service with restaurant/bar, meeting facilities, swimming pool, health club and other elevated brand standards and service amenities that make this product a true four diamond/star like experience.
Franchise Terms
Application Fee: $2,000
Initial Fee: $12,000
Royalty & Marketing Fees: 3% Gross Room Revenue
Annual Conference Fee: $499
The Centerstone brand offers one of the lowest fee structures in the industry. With an initial fee of only $12,000, franchisees can have short-term agreements as low as 36 months. Combined marketing and royalty is only 3%. Everything mentioned above is coupled with a cutting-edge reservation system, strong consumer marketing programs, and a commitment of fairness and understanding which makes Centerstone one of best choices in franchising today. Welcome to a true, “franchise-friendly”, brand.
The total investment necessary to begin operation of a Centerstone
Lodging Facility franchised business is between $3,482,149 and
$8,728,147 for a newly constructed hotel. This includes between $42,999
and $67,997 that must be paid to the franchisor or its affiliates.
The
total investment necessary to begin operation of a Centerstone Lodging
Facility franchised business conversion of an existing hotel is between
$47,149 and $1,648,147. This includes between $35,999 and $67,997 that
must be paid to the franchisor or its affiliates(s).