Red Roof Inn vs Motel 6 Franchise Comparison

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

Start-Up Costs and Fees
 
Red Roof Inn Franchise
Motel 6 Franchise
Investment $203,500 - $5,456,700$206,850 - $8,823,850
Franchise Fee $30,000$25,000 - $35,000
Royalty Fee 4.5%5%
Advertising Fee 4%(Marketing & Reservation Fee)3.5%
Year Founded 19671962
Year Franchised 19961996
Term Of Agreement 20 years10-15 years
Term Of Agreement 20 years10-15 years
Renewal Fee 50% of current franchise fee50% of current franchisee fee


Business Experience Requirements
 
Red Roof Inn Franchise
Motel 6 Franchise
Experience
  • General business experience

  • General business experience
    		•

    Financing Options
     
    Red Roof Inn Franchise
    Motel 6 Franchise
      In-House/3rd PartyIn-House/3rd Party
    Franchise Fees No/YesNo/Yes
    Start-up Costs No/YesNo/Yes
    Equipment No/YesNo/Yes
    Inventory No/YesNo/Yes
    Receivables No/YesNo/No
    Payroll No/YesNo/No

    Training & Support
     
    Red Roof Inn Franchise
    Motel 6 Franchise
    Training On-The-Job Training: Varies Classroom Training: 40 hours Additional Training: Regional workshops 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 PlatformPurchasing 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 Regional Advertising Social media SEO Website development Email marketing Loyalty program/appCo-op Advertising Ad Templates National Media Social media SEO Website development Email marketing Loyalty program/app
    Operations Number of Employees Required to Run: 10

    10% of all franchisees own more than one unit

    Absentee ownership of franchise is allowed. (60% of current franchisees are owner/operators)

    		 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
     
    Red Roof Inn Franchise
    Motel 6 Franchise
    US Expansion Yes-
    Canada Expansion NoNo
    International Expansion YesYes

    Company Overviews

    About Red Roof Inn

    Congratulations! You have made the first step in learning more about how you can join the Red Roof family. Here you will learn how you're making a smart decision by choosing to become a Red Roof franchisee. A Smart-By-Design Franchise Opportunity, A Red Roof franchise has been an extraordinarily positive experience from almost all standpoints; customer service, design help, purchasing efficiencies, brand loyalty and, most importantly, reservations. The brand has consistently performed extremely well in good and bad economic times and often punched above its weight and rate. Brand changes are always done by considering franchisee needs while ensuring the customer gets the most value for their money. The company has also been very adaptive changing customer demographics and has adapted both its physical plant and virtual image to appeal to a broad cross section of travelers. 98% of current Red Roof franchisees would recommend a Red Roof franchise to other entrepreneurs. Red Roof is securely positioned in the upper-end of the economy segment with RevPARs currently averaging 21% higher than competing economy hotels in the markets in which we compete. Our Smart-by-Design approach to franchising is evident in everything we do, from exciting new prototypes and conversion plans to day-to-day operations training. We focus on the details that keep our guests coming back and our franchisees successful. With a seasoned management team and a focus on the success of one outstanding brand, Red Roof is truly redesigned and rededicated to become the best franchise opportunity in the economy segment.

    "Entrepreneur

    #66 in Franchise 500 for 2020.
    #134 in Franchise 500 for 2021.


    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.