Risk Score
Pending analysis
Investment Range
$197,107 - $9,217,088
Franchise Fee
$25,000
Min Cash Required
$100,000
Total US Locations
273
Business Summary
Studio 6 offers franchises for motels that provide all-suite lodging with limited services and amenities. Studio 6 Extended Stay Motels cater to business and leisure customers seeking short-term, low-cost housing alternatives for stays of three or more consecutive nights. Studio 6 Suites focus on transient business and leisure travelers needing accommodations for stays longer than a single night.
Corporate History
G6 Hospitality Franchising LLC, the franchisor for Studio 6, was formed in January 2005 as Accor Franchising North America, LLC, and later changed its name in July 2012. It began offering Studio 6 franchises in January 2005, though the Studio 6 System itself has been operational since 1999. The franchisor's intermediate parent company, G6 Hospitality LLC, traces its origins back to 1985, originally organized as Motel 6 G.P., Inc. In December 2024, G6 Hospitality Franchising became indirectly owned by OYO Hotels Inc., an India-based hospitality franchising organization.
Financial Overview
Investment Range
$197,107 - $9,217,088
Franchise Fee (Low)
$25,000
Franchise Fee (High)
$25,000
Minimum Cash Required
$100,000
Royalty %
5%
Marketing %
3%
Equipment Costs (Low)
$16,664
Equipment Costs (High)
$972,541
Working Capital
$130,000
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
Studio 6's financial statements have received an unqualified audit opinion, indicating they present fairly in all material respects. The auditors did not identify any substantial doubt about the company's ability to continue as a going concern. However, Studio 6 receives substantial support from its parent company, G6 Hospitality, for services and administration, and its financial statements may not reflect conditions if it operated as an unaffiliated entity. Studio 6 also faces various legal proceedings but does not believe their outcomes will materially affect its business or financial condition.
Financing Details
Studio 6 does not offer any direct or indirect financing to its franchisees. Franchisees are responsible for securing their own loans or leases, and Studio 6 will not guarantee any such obligations.
Performance Metrics
Total US Locations
273
Franchised Units
273
Corporate Units
0
Franchising Since
2005
Legal & Compliance Analysis
Recent Litigation
Yes
Bankruptcy
No
Litigation Count
6
Litigation Summary
Studio 6 and its affiliates have been involved in six disclosed litigation matters. Two active cases, filed in 2023 and 2024, involve disputes with former franchisees over contract termination and collection of damages, with Studio 6 having already secured a default judgment in one that is pending a final hearing. A prior case from 2018 with a former franchisee alleging breach of contract and fraud was settled and appealed multiple times, ultimately concluding in Studio 6's favor in 2023. Additionally, Studio 6's parent and affiliates faced two class-action lawsuits in 2018 (one in Arizona and one in Washington) regarding the disclosure of guest information to federal immigration authorities. Both of these large cases resulted in multi-million dollar settlements and consent decrees that expired in 2022 and 2023, requiring changes in information-sharing practices. A collection action was also initiated by Studio 6 in November 2024.
Bankruptcy History
Studio 6 has no bankruptcy history to report.
Agreement Terms
Initial Term
15 years
Renewal Term
10 years
Renewal Conditions
To renew a Studio 6 franchise, franchisees must be in good standing, not in default, and have paid all financial obligations. They need to submit a renewal application, pay an application fee, and a renewal franchise fee, which is typically 50% of the current new franchise fee. Franchisees are also required to complete updated training, agree to a Property Improvement Plan (PIP) for property upgrades, and sign Studio 6's then-current franchise agreement, which may have different terms. Additionally, they must sign a general release of claims. For dual-brand operations, both Studio 6 and Motel 6 agreements must be renewed simultaneously for the same period with identical ownership.
Training & Support Program
Franchisor Assistance
Studio 6 provides a variety of support services to its franchisees. Before opening, Studio 6 assists with evaluating proposed sites and reviewing construction or renovation plans, providing prototype plans for new builds and Property Improvement Plans for conversions. Franchisees receive General Manager training, access to operating manuals, an email license, and a professional photo shoot for their property. Studio 6 also conducts inspections and provides on-site opening assistance, which includes installation and training for the property management system and other technology. After opening, Studio 6 administers the brand's marketing and reservation systems, maintains the brand website, and offers optional property-specific microsites. Ongoing support includes IT technical assistance, continued training, consultation, and advisory services. Studio 6 also sets standards for products and services and conducts regular inspections to ensure compliance with brand standards. Franchisees are required to attend an annual conference.
Initial Training Hours
12.5
Training Location
Corporate headquarters in Dallas, Texas, or virtually/online
Ongoing Support
Studio 6 provides ongoing support by administering its marketing program and reservation system, and maintaining a brand website. Franchisees can also opt for a motel-specific microsite. Support includes IT technical assistance for software and hardware. Studio 6 offers continuing training, tools, consultation, and advisory assistance, and requires annual Anti-Human Trafficking training. They also conduct regular inspections and evaluations to ensure adherence to brand standards, providing operational advice. Franchisees are required to attend an annual conference.
Franchise Requirements
Industry Experience Required
No
Management Experience Required
No
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
commercial
Owner Participation
Absentee Allowed
Territory Type
Protected
Staffing Notes
Studio 6 requires each motel to employ a full-time General Manager who must dedicate their best efforts to managing the operation. This General Manager, and any replacements, must successfully complete Studio 6's training program within two months of hire. Additionally, during on-site training provided by Studio 6, every guest service representative must attend.