Motel 6 vs Quality Inn
Motel 6 vs Quality Inn: Motel 6 costs $195K to $8.2M to open; Quality Inn costs $317K to $2.0M. Motel 6 has 1,195 units, Quality Inn has 819. SBA loan history: Motel 6 = 613 loans (2.3% default); Quality Inn = 1,191 loans (5.3% default). The franchise with more SBA funded units, a lower SBA default rate, and a lower royalty load is the safer financing bet; see the comparison below.
Motel 6 vs Quality Inn: Capital, Scale & Lending Analysis
Analysis based on FDD filings and SBA 7(a) loan level data. Each pairing reflects a unique combination of capital intensity, system scale, and financing path.
Capital Intensity
Motel 6 requires the lower minimum capital commitment ($195K vs $317K for Quality Inn), a 38% spread. Initial franchise fees come in at $25K for Motel 6 versus $40K for Quality Inn, Motel 6 has the lower entry fee. Ongoing royalty load is 5% for Motel 6 and 5% for Quality Inn, equal royalty drag.
System Scale & Tenure
On scale, Motel 6 operates 1,195 units to Quality Inn's 819. Quality Inn has been operating 87 years (founded 1939) versus 64 for Motel 6 (founded 1962), a 23-year tenure gap that affects unit-economics maturity and FDD revision history.
SBA Lending Profile
Quality Inn has the deeper SBA lending track record, with 1,191 7(a) approvals compared with 613 for Motel 6. Motel 6's peak SBA year was 2021 (78 loans); Quality Inn's peak was 2015 (87 loans). Motel 6's more recent peak generally indicates fresher lender appetite. Motel 6 has the most SBA funded units in CA, with 109. Quality Inn leads in TX, with 84. Borrowers should pick the brand whose strongest SBA state matches their own state for warmer lender introductions. Average SBA loan size on funded Motel 6 deals is $2.1M vs $2.1M for Quality Inn, useful as a sizing anchor when modeling your own unit.
Risk Signal
SBA default rates are 2.3% for Motel 6 and 5.3% for Quality Inn, Motel 6 has the cleaner SBA loss record by 3.0 points. PeerSense FPI scores come in at 69 (Strong) for Motel 6 and 69 (Strong) for Quality Inn.
Health & Performance
FPI Score | 69/100 | 69/100 |
Health Tier | Strong | Strong |
Confidence | N/A | N/A |
Lending Trend | Declining | Declining |
SBA Lending
SBA Loans | 613 | 1,191 |
SBA Volume | – | – |
Default Rate | 2.3% | 5.3% |
Peer Tier | major | major |
Investment & Costs
Total Investment | $195K to $8.2M | $317K to $2.0M |
Franchise Fee | $25K | $40K |
Royalty Rate | 5% | 5% |
Ad Fund | 3% | 7.9% |
Liquid Capital | $100K | N/A |
Net Worth Required | N/A | N/A |
Financial Performance (Item 19)
Item 19 Status | Disclosed | Disclosed |
System Size & Operations
Total Units | 1,195 | 819 |
Franchised Units | 1,195 | 819 |
Company Owned | – | – |
Term Length | 15 yrs | 20 yrs |
Brand Information
Year Founded | 1962 | 1939 |
Franchising Since | 2005 | 1960 |
Years Franchising | 21 yrs | 66 yrs |
Headquarters | Carrollton, TX | North Bethesda, MD |
Category | Hotels | Hotels |
Website | ||
FDD Year | 2025 | 2024 |
Which Is Better, Motel 6 or Quality Inn?
Lower upfront capital required
Motel 6
Motel 6: $195K starting · Quality Inn: $317K starting
More SBA lender confidence
Quality Inn
Motel 6: 613 SBA loans · Quality Inn: 1,191 SBA loans
Lower SBA default rate
Motel 6
Motel 6: 2.3% · Quality Inn: 5.3%
Larger system & brand presence
Motel 6
Motel 6: 1,195 units · Quality Inn: 819 units
Lower ongoing royalty load
Tie
Motel 6: 5% · Quality Inn: 5%
More lender financing options
Quality Inn
Motel 6: 192 unique lenders · Quality Inn: 288 unique lenders
Decision matrix uses publicly disclosed FDD and SBA loan data. Not a recommendation. Your best franchise depends on capital, market, operating capacity, and risk tolerance.
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About These Franchises
Motel 6 vs Quality Inn: Franchise Funding Comparison
Comparing Motel 6 and Quality Inn is about more than brand preference. It's about which franchise fits your financial profile and funding strategy. Investment ranges from $195K to $8.2M.
Motel 6 has 613 SBA loans on record and Quality Inn has 1,191. Those totals are cumulative history rather than a measure of current appetite. Recent lending activity is trending down for at least one of these brands, so current lender appetite has to be checked deal by deal rather than assumed from the totals.
SBA 7(a) loans are the most common franchise funding vehicle, offering up to $5M with as little as 10% down. PeerSense connects franchise buyers with the specific lenders who have approved loans for these brands, not generic referrals, but lenders with actual franchise lending track records.
Data sourced from SBA loan records, Franchise Disclosure Documents, and public filings. Updated regularly. Not financial advice, consult with a lending professional before making investment decisions.
Motel 6 vs Quality Inn, Frequently Asked Questions
Which is a better franchise investment, Motel 6 or Quality Inn?
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Which has a lower SBA default rate, Motel 6 or Quality Inn?
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Page Review
Reviewed by Edward L. Freeman, Founder and Managing Director, PeerSense
- PeerSense is a capital advisory firm that places commercial financing with direct capital sources; the capital source sets final terms.
- Edward L. Freeman founded PeerSense in January 2020.
- He is a Registered Franchise Consultant with Business Alliance, Inc., a credential issued in March 2022, and worked as a franchise consultant there from March 2022 to May 2023.
- His recorded experience includes a $22 million SBA construction loan, with about $16 million funded on the deal.
- In the 12 months through September 30, 2026, PeerSense tracked 912 publicly announced financings with a disclosed size of $361.32 billion. PeerSense Capital Data Report · Methodology page
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