Franchise Failure Rates

SBA 7(a) loan outcomes · FY2010–FY2019 cohort · Statuses as of June 30, 2026 · Last updated August 17, 2026

Motel 6 Franchise Failure Rate: 3.1% SBA Loan Defaults (2010–2019 Federal Data)

3.1%
charge-off rate on 162 SBA 7(a) loans to Motel 6 franchisees, FY2010–2019
Charge-off rate, SBA 7(a) loans approved FY2010–FY2019 — Motel 6 against its industry and all franchises
Charge-off rate, SBA 7(a) loans approved FY2010–FY2019: Motel 6 3.1%; Hotels (except Casino Hotels) and Motels 3.0%; All franchises 10.2%Motel 6 3.1%; Hotels (except Casino Hotels) and Motels 3.0%; All franchises 10.2%0%2%4%6%8%10%Motel 63.1%Hotels (except CasinoHotels) and Motels3.0%All franchises10.2%
Charge-off rate, SBA 7(a) loans approved FY2010–FY2019: Motel 6 3.1%; Hotels (except Casino Hotels) and Motels 3.0%; All franchises 10.2%Motel 6 3.1%; Hotels (except Casino Hotels) and Motels 3.0%; All franchises 10.2%0%2%4%6%8%10%Motel 63.1%Hotels (except Casino Hotels) and Motels3.0%All franchises10.2%

Source: U.S. SBA FOIA dataset, statuses as of June 30, 2026. Figures also in the comparison table below.

About 1 in 32 Motel 6 SBA borrowers failed to repay — in line with the Hotels (except Casino Hotels) and Motels average of 3.0%.

Between 2010 and 2019, 162 Motel 6 franchisees financed with SBA 7(a) loans. 5 defaulted — a 3.1% charge-off rate, 1.0x the Hotels (except Casino Hotels) and Motels average of 3.0%. Source: U.S. Small Business Administration FOIA dataset, loan statuses as of June 30, 2026.

What is the Motel 6 franchise failure rate on SBA loans?

Motel 6 is a Hotels (except Casino Hotels) and Motels franchise. This page reports the outcome of every SBA 7(a) loan the U.S. Small Business Administration's public FOIA file attributes to Motel 6 franchisees: 162 loans approved between fiscal 2010 and 2019, of which 5 were charged off. Loan statuses are as of June 30, 2026, and the cohort has matured, so these are settled outcomes rather than projections.

How does Motel 6 compare with other Hotels (except Casino Hotels) and Motels franchises?

The table sets Motel 6's charge-off rate beside its Hotels (except Casino Hotels) and Motels peers and the two economy-wide benchmarks. All figures use the same cohort — SBA 7(a) loans approved FY2010–FY2019, statuses as of June 30, 2026 — and the same denominator of resolved loans, so they are directly comparable.

Motel 6 versus benchmarks, SBA 7(a) loans approved FY2010–FY2019, statuses as of June 30, 2026. Source: U.S. SBA FOIA dataset.
MeasureMotel 6Hotels (except Casino Hotels) and MotelsAll franchisesAll SBA borrowers
Default (charge-off) rate3.1%3.0%10.2%8.0%
Loans in sample162———
Defaults5———
Average loan size$1,800,565———

What has Motel 6 SBA lending looked like since 2020?

Since 2020, Motel 6 franchisees have taken 227 new SBA 7(a) loans. None have charged off to date, though most remain outstanding and unresolved.

Charge-off rate by approval year — share of each fiscal year's Motel 6 SBA 7(a) loans that later defaulted (FY2010–FY2019); years with fewer than 10 loans are outlined, not filled
Charge-off rate by approval year: FY2010 0% of 7 loans; FY2011 0% of 9 loans; FY2012 0% of 5 loans; FY2013 8% of 12 loans; FY2014 0% of 20 loans; FY2015 10% of 21 loans; FY2016 6% of 17 loans; FY2017 0% of 26 loans; FY2018 3% of 30 loans; FY2019 0% of 15 loansCharge-off rate by approval year: FY2010 0% of 7 loans; FY2011 0% of 9 loans; FY2012 0% of 5 loans; FY2013 8% of 12 loans; FY2014 0% of 20 loans; FY2015 10% of 21 loans; FY2016 6% of 17 loans; FY2017 0% of 26 loans; FY2018 3% of 30 loans; FY2019 0% of 15 loans0%5%10%0%2010n=70%2011n=90%2012n=58%2013n=120%2014n=2010%2015n=216%2016n=170%2017n=263%2018n=300%2019n=15
Charge-off rate by approval year: FY2010 0% of 7 loans; FY2011 0% of 9 loans; FY2012 0% of 5 loans; FY2013 8% of 12 loans; FY2014 0% of 20 loans; FY2015 10% of 21 loans; FY2016 6% of 17 loans; FY2017 0% of 26 loans; FY2018 3% of 30 loans; FY2019 0% of 15 loansCharge-off rate by approval year: FY2010 0% of 7 loans; FY2011 0% of 9 loans; FY2012 0% of 5 loans; FY2013 8% of 12 loans; FY2014 0% of 20 loans; FY2015 10% of 21 loans; FY2016 6% of 17 loans; FY2017 0% of 26 loans; FY2018 3% of 30 loans; FY2019 0% of 15 loans0%5%10%0%’10n=70%’11n=90%’12n=58%’13n=120%’14n=2010%’15n=216%’16n=170%’17n=263%’18n=300%’19n=15

Loans approved since 2020, by fiscal year — counts only: 0 have charged off to date and most are still outstanding, so no rate is drawn.

Loans approved since 2020: FY2020 57; FY2021 59; FY2022 40; FY2023 27; FY2024 18; FY2025 11; FY2026 15Loans approved since 2020: FY2020 57; FY2021 59; FY2022 40; FY2023 27; FY2024 18; FY2025 11; FY2026 15572020592021402022272023182024112025152026
Loans approved since 2020: FY2020 57; FY2021 59; FY2022 40; FY2023 27; FY2024 18; FY2025 11; FY2026 15Loans approved since 2020: FY2020 57; FY2021 59; FY2022 40; FY2023 27; FY2024 18; FY2025 11; FY2026 1557’2059’2140’2227’2318’2411’2515’26

Source: U.S. SBA FOIA dataset, statuses as of June 30, 2026.

Show the numbers behind this chart
Fiscal yearLoansCharged offRate
FY2010700.0%
FY2011900.0%
FY2012500.0%
FY20131218.3%
FY20142000.0%
FY20152129.5%
FY20161715.9%
FY20172600.0%
FY20183013.3%
FY20191500.0%
FY202057—outstanding
FY202159—outstanding
FY202240—outstanding
FY202327—outstanding
FY202418—outstanding
FY202511—outstanding
FY202615—outstanding

How to read this

A charge-off means a franchisee borrowed, operated, and failed severely enough that the SBA wrote off the government-guaranteed loan. Unlike franchisor marketing or Item 19 disclosures, this is an observed outcome recorded by a federal agency. One caveat cuts the other way: SBA borrowers are typically less capitalized than all-cash buyers, so these rates can overstate risk for well-funded operators.

How reliable is this number?

Motel 6's figure rests on 162 resolved SBA 7(a) loans approved between fiscal 2010 and 2019 — a matured cohort, so the rate is a settled outcome, not a projection. With 162 resolved loans, the sample is large enough that a single default barely moves the figure. Loans approved since 2020 are excluded from the rate because most are still outstanding; they appear on this page as counts only. Every Motel 6 figure is recomputed from the public SBA FOIA file on each rebuild.

Frequently asked

What is Motel 6's franchise failure rate on SBA loans?
Between 2010 and 2019, 162 Motel 6 franchisees financed with SBA 7(a) loans. 5 defaulted — a 3.1% charge-off rate, 1.0x the Hotels (except Casino Hotels) and Motels average of 3.0%. Source: U.S. Small Business Administration FOIA dataset, loan statuses as of June 30, 2026.
Is Motel 6 a safe franchise investment?
Between 2010–2019, Motel 6 franchisees defaulted on SBA loans at 3.1% versus a 3.0% industry average. This data is one input for due diligence; it is not investment advice.

Cite this page

Franchise Default Rates (2026). Motel 6 franchise SBA 7(a) default rate, FY2010–FY2019 cohort: 3.1% (5 of 162 loans charged off). Derived from U.S. SBA FOIA data, loan statuses as of June 30, 2026.

https://franchisefailurerates.com/franchise/motel-6/ · Data & methodology · Download the dataset (CSV)