Motel 6

Can you provide details on the 4 litigation cases filed in the past 3 years, including the nature of disputes and outcomes or settlement terms?

What is driving the significant increase in unit closures from 26 in 2022 to 59 in 2024? Are these primarily related to property performance, franchisor initiatives, or external market factors?

Why is the termination rate of 4.9% substantially higher than the typical range of 0.0–1.6% for hospitality franchises? What are the primary reasons franchisees are being terminated?

Can you explain the 8 renewal conditions required for renewal, particularly the property improvement program renovation requirement and its estimated cost?

What financial performance benchmarks must a franchisee meet to qualify for renewal, and how many franchisees have failed renewal in the past 5 years?

The franchise fee of $25,000 is below typical market rate for hotel franchises. Does this lower fee correspond to reduced support, training, or other franchisor services compared to competitors?

With territory being protected but not exclusive, can the franchisor place another Motel 6 within the defined protected territory under any circumstances?

What is the typical timeline and process for renewing the franchise agreement at the end of the initial 15-year term?

The renewal fee is stated as 50% of the then-current franchise fee. What was the renewal fee at the last franchise renewal, and how much has it increased over time?

Can you provide the average age of current franchise units and clarify if property-age-related renovation requirements are contributing to the high termination rate?

What specific operational requirements (such as the 24-hour daily operation mandate) have been modified or waived for underperforming units?

How many of the 1 pending litigation case and 4 completed cases in the past 3 years involved franchisee terminations or disputes over renewal conditions?

The franchisor requires approved-supplier purchases and reserves pricing authority. What percentage of franchisee revenue typically goes to franchisor-controlled purchases?

Are there specific market segments, geographic regions, or unit types that have higher closure or termination rates?

What support does the franchisor provide to struggling franchisees before termination, and what is the typical notice period given for non-renewal?

Has the franchisor implemented any new operational or financial requirements in the past 3 years that may have affected franchisee viability?