Motel 6 vs The Red Collection Franchise Comparison

Below is an in-depth analysis and side-by-side comparison of Motel 6 vs The Red Collection including start-up costs and fees, business experience requirements, training & support and financing options.

Start-Up Costs and Fees
 
Motel 6 Franchise
The Red Collection Franchise
Investment $206,850 - $8,823,850$787,000 - $1,745,500
Franchise Fee $25,000 - $35,000$30,000
Royalty Fee 5%-
Advertising Fee 3.5%-
Year Founded 19622017
Year Franchised 19962017
Term Of Agreement 10-15 years-
Term Of Agreement 10-15 years-
Renewal Fee 50% of current franchisee fee-


Business Experience Requirements
 
Motel 6 Franchise
The Red Collection Franchise
Experience
  • General business experience
    		• -

    Financing Options
     
    Motel 6 Franchise
    The Red Collection Franchise
      In-House/3rd PartyIn-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
     
    Motel 6 Franchise
    The Red Collection Franchise
    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
     
    Motel 6 Franchise
    The Red Collection Franchise
    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
    "Entrepreneur
    #96 in Franchise 500 for 2020.
    #197 in Franchise 500 for 2021.




    About The Red Collection

    "The
    Red Roof® properties, including The Red Collection, consistently outperform in the economy market and have some of the lowest fees in the industry.

    Red Roof is expanding internationally to Brazil, Canada, Thailand, and Japan as well as across the U.S.A.

    The total investment necessary to begin operation of a hotel participating in The Red Collection franchise for a 65-room conversion hotel ranges from $787,000 to $1,745,500. These amounts do not include the cost of land or rent for the hotel location but do include the approximately $57,500 to $62,000 that must be paid to the franchisor or affiliate.