$157

Business Description

The Franchisor is G6 Hospitality Franchising LLC (“G6 Franchising”), a Delaware limited liability company organized in January 2005. G6 Franchising’s name was changed from Accor Franchising North America, LLC in July 2012 in connection with the October 1, 2012 acquisition of Accor S.A.’s United States Economy Hotels Division by BRE/EVERBRIGHT M6 LLC, a Delaware limited liability company (“Purchaser”) and an affiliate of The Blackstone Group L.P. (NYSE: BX)(“Blackstone”). That division included both the Motel 6 brand and the Studio 6 brand. Currently, those brands include approximately 1,417 hotels (124,739 rooms) in the United States and Canada. Blackstone is a leading global alternative asset manager and provider of financial advisory services. To simplify the language in this disclosure document we refer to the Franchisor as “we,” “us,” or “our.” “You” means the person who buys the franchise. If you are a corporation, limited partnership or limited liability company, certain provisions of the Franchise Agreement will also apply to your Owners. These will be addressed in this disclosure document where appropriate. Except as specifically stated otherwise, “you” does not include the Owners of a franchisee that is a corporation, limited partnership or limited liability company. Our principal business address is 4001 International Parkway, Carrollton, Texas 75007. We conduct our business under our legal name and offer franchises in the United States under the service marks “Motel 6®” and “Studio 6®.” Our operations are managed by our Affiliate, G6 Hospitality LLC (“G6 Hospitality”), under a services agreement. G6 Hospitality also provides certain franchise services including but not limited to procurement, e-procurement services, billing, marketing, reservations, renovation assistance, and customer service to our franchisees. G6 Hospitality maintains the same principal business address that we do. Our agents for service of process are listed on Exhibit B.

Prior Experience

We do not operate Motel 6 locations, but our predecessor and Affiliate, Motel 6 Operating, L.P. (“Motel 6 OLP”), has operated Motel 6 locations since May 1986. Our Affiliate, G6 Hospitality, is the managing general partner of Motel 6 OLP. G6 Hospitality Property LLC and G6 Hospitality Real Estate LLC have owned or operated Motel 6 and Studio 6 locations since 2012. The Motel 6 System has been continuously operated since 1962. Motel 6 OLP offered franchises for Motel 6 locations from 1996 through February 2005. Effective March 1, 2005, Motel 6 OLP transferred to us all of its interest under its existing Motel 6 motel franchise agreements and granted us the right to use the Motel 6 System and service marks to offer Motel 6 franchises. Motel 6 OLP continues to operate company-owned and/or operated Motel 6 locations. Motel 6 OLP offered franchises for Studio 6 extended stay motels from May 1999 through February 2005. Effective March 1, 2005, Motel 6 OLP transferred to us all of its interest under its existing Studio 6 franchise agreements and granted us the right to use the Studio 6 System and service marks to offer Studio 6 franchises. Studio 6 motels are extended stay properties and appeal to people who need to find accommodations for stays of one or more weeks. There are 118 Studio 6 franchises as of December 31, 2017.

Business Offered

We offer franchises for the establishment and operation of transient budget lodging facilities offering lodging services and limited amenities at a price that competes directly with other brands in the budget segment of the lodging industry and which operate under the “Motel 6” name and mark and the Motel 6 System, as described below (the “Motel 6 Motel”). The Motel 6 System is a distinctive system (the “System”) whose distinguishing characteristics include, among others, the Property Management System Software (the “Software”), the Property Management System (the “Computer System”), a proprietary reservation system (the “Reservation System”), and a marketing program (the “Marketing Program”). We periodically modify aspects of the Motel 6 System. Motel 6 Motels are identified by the name and mark “Motel 6,” and by certain other trade names, service marks, trademarks, logos, emblems and indicia of origin (the “Proprietary Marks”). We may change, or designate other Proprietary Marks for use in the System. The terms, conditions, and obligations under which you operate the Motel are described in a franchise agreement that you and we sign before you begin operations (the “Franchise Agreement”). You must also sign a Software Agreement with us for the Software used in operating the Motel. Before signing a Franchise Agreement or the Software Agreement, you must sign and submit a franchise application including a credit check (the “Application”) to us. The Application, the Franchise Agreement, and the Software Agreement are referred to in Item 22 below, and copies of the documents are attached as exhibits to this disclosure document. To promote uniform quality in Motels operating under the Motel 6 Brand, we have prepared confidential operating Manuals and other resources (the “Manuals”) which contain mandatory and recommended Standards and procedures for operating your Motel and maintaining consistent quality across the Brand. The franchises described in this disclosure document are offered for the operation of newly constructed motels and for the conversion of existing properties to Motel 6 Motels or renovation of the property as required under your Franchise Agreement. If you are granted a franchise for a motel to be built, you must sign a New Construction Addendum (“Construction Addendum”) and a New Construction Assistance Agreement (“Construction Assistance Agreement”). If you are granted a franchise for a conversion property, you must sign a Renovation Addendum to the Franchise Agreement (“Renovation Addendum”) and a Renovation Assistance Agreement (“Renovation Assistance Agreement”). If you satisfy our qualifications, we may offer you franchises for both a Motel 6 Motel and a Studio 6 motel (“Studio 6 Motel”) to be operated at the same location, either within the same building or in separate buildings adjacent to one another, but in each case with a shared lobby (the “Dual Brand Operation”). To obtain a franchise for a Motel 6 Motel to be operated as part of a Dual Brand Operation, you must execute a Franchise Agreement for the Motel 6 Motel, a franchise agreement for a Studio 6 Motel (“Studio 6 Franchise Agreement”) in the form attached as an exhibit to the Studio 6 Franchise Disclosure Document, and the Dual Brand Amendments to both the Motel 6 Franchise Agreement and the Studio 6 Franchise Agreement. You must also satisfy all of our then-current requirements for Dual Brand Operations, which may include the following, among others: (1) the same individual or entity must be the franchisee under both the Motel 6 Franchise Agreement and the Studio 6 Franchise Agreement; (2) the Dual Brand Operation must contain a minimum total room count of 100 rooms, with no less than 30% of the total rooms to be included in the inventory of the Studio 6 Motel; and (3) we must approve the proposed room configuration, layout and any other changes to both the Motel 6 Motel and the Studio 6 Motel. Unless otherwise defined, all defined terms used in this disclosure document will have the meanings given to them in the Franchise Agreement.

Initial Fees

Application Fee When you submit an Application you must pay us an Application fee of $5,000. Except as stated below, the Application fee is fully earned and is non-refundable. If we approve your Application, we credit your Application fee toward the initial franchise fee. If we reject your Application, we will refund your Application fee if we have not visited your site or the area surrounding your site or provided architectural or technical assistance to you. For a Dual Brand Operation, you must pay the applicable Application fee for both the Motel 6 Motel and the Studio 6 Motel. Initial Franchise Fee When you sign the Franchise Agreement, you must pay us an initial franchise fee of $25,000, up to 150 rooms, and $35,000 for 151 or more rooms, less the Application fee you have paid. The initial franchise fee is fully earned and non-refundable upon entering into the Franchise Agreement. In certain limited circumstances, we may negotiate the initial franchise fee depending upon such factors as the total number of new or conversion properties you propose, market conditions, market penetration and other relevant factors at Franchisor’s sole discretion. We do not make a practice of negotiating fees. We may reduce the initial franchise fee for existing franchisees or owners who establish additional Motel 6 Motels and meet certain then-current Franchisor established criteria, at Franchisor’s sole discretion. For a Dual Brand Operation, you must pay the applicable initial franchise fee for both the Motel 6 Motel and the Studio 6 Motel; in each case, calculation of the number of guestrooms in excess of 150 rooms is made by reference to the total number of rooms in the Motel 6 Motel or Studio 6 Motel, as applicable. Renovation and New Construction Assistance Fee We will require you to sign a Renovation or New Construction Addendum (whichever is applicable) and/or a Renovation or Construction Assistance Agreement (whichever is applicable) (“Assistance Agreement”). Under the Assistance Agreement, we provide certain services, in addition to those we provide under the Franchise Agreement, in order to assist you in completing the renovation or construction of your Motel in conformity with our Standards and specifications for Motel 6 motels. When you enter into an Assistance Agreement, you must pay us a non-refundable fee at the time the Assistance Agreement is executed in an amount that may range from $4,500 to $25,000. For a Dual Brand Operation, if the Opening Date of your Motel 6 Motel is the same date as the Opening Date of your Studio 6 Motel, then you will only be required to pay one Renovation and New Construction Assistance Fee in respect of the Dual Brand Operation. However, if the Opening Dates for your Motel 6 Motel and your Studio 6 Motel are not the same, we reserve the right to charge a separate Renovation and New Construction Assistance Fee for the Motel 6 Motel and the Studio 6 Motel. Pre-Opening Readiness Re-Inspection If you notify us that your property is ready for opening and our personnel or designated agent visit your Motel and find that your Motel has not satisfied all requirements for opening, then we may determine that the Motel will not open. Your Motel must be re-inspected to confirm readiness and you will be charged a re-inspection fee. This non-refundable fee for each re-inspection is currently $3,000 to $5,000. Opening Extension Fee If you fail to complete your pre-opening Motel construction or renovation by the dates specified in Schedule A to the Renovation or New Construction Addendum of the Franchise Agreement, you will pay us an opening extension fee of $2,500 to $5,000 for every 3-month extension until the Motel opens. We may negotiate the amount or payment with you when business circumstances warrant. For a Dual Brand Operation, you must pay the applicable Opening Extension Fee for your Motel 6 Motel and your Studio 6 Motel. However, if the extended Opening Date of your Motel 6 Motel is the same date as the extended Opening Date of your Studio 6 Motel (and both hotels open to the public for business on such extended opening date), then you will only be required to pay one Opening Extension Fee in respect of your Motel 6 Motel and your Studio 6 Motel, collectively. Product Purchases You may also be required to purchase, through the G6 Hospitality e-procurement marketplace system or directly from other approved suppliers, the softgoods (such as bedspreads and drapes), certain casegoods, certain services, such as pest control, certain other brand-specific items, and the Computer System to be used at the Motel and other System related items. Items purchased through the G6 Hospitality e-procurement marketplace system or its approved suppliers may include a percentage or per unit mark up to cover our incremental expenses and overhead to process and manage the orders. (See Item 8.) Except as otherwise described above, all fees are payable in a lump sum and are non-refundable. Veteran Incentive We are currently offering a veteran incentive program to encourage entrepreneurs that have served in the United States military and been honorably discharged from service (“Veteran Incentive”). The Veteran Incentive Program may not be combined with any other incentive program that we may be offering at the time of application, and we may discontinue the Veteran Incentive Program at any time. To qualify for the Veteran Incentive Program, you must meet all of the following conditions: > Request the Veteran Incentive at the time of application; > Meet our then-current qualifications for new franchisees (including our standard credit review); > Own the hotel or the land; > If you are an individual, you must demonstrate that you have served in the United States military and have been honorably discharged from service by presenting to us a certified DD-214; and > If you are an entity, you must be at least 51% legally and beneficially owned by persons that can demonstrate to us that they meet these requirements.

Financing

We do not offer direct financing to franchisees. We will not guarantee any loan or lease that you may obtain or any obligations that you may incur. We do not receive any payments from any person for the placement of financing with such person.

Franchisee Revenue and Profit

PART 1 STATEMENT OF AVERAGE REVENUES AND EXPENSES FOR MOTEL 6 PROPERTIES OWNED OR LEASED BY M6 OLP, G6 HOSPITALITY PROPERTY LLC and G6 HOSPITALITY REAL ESTATE LLC DURING THE PERIOD JANUARY 1, 2017 - DECEMBER 31, 20171 NUMBER OF PROPERTIES: 416 AVERAGE PROPERTY SIZE: 115 ROOMS AVERAGE DAILY RATE: $62.50 AVERAGE OCCUPANCY: 68.28% PART 2 NUMBER OF PROPERTIES AND AVERAGE REVENUES FOR MOTEL 6 PROPERTIES FRANCHISED BY G6 HOSPITALITY FRANCHISING, LLC DURING THE PERIOD JANUARY 1, 2017 - DECEMBER 31, 2017 NUMBER OF PROPERTIES: 762 AVERAGE REVENUES REPORTED: $843,344.52 PART 3 STATEMENT OF AVERAGE REVENUES AND EXPENSES FOR MOTEL 6 PROPERTIES WITH 70 ROOMS OR LESS OWNED OR LEASED BY M6 OLP, G6 HOSPITALITY PROPERTY LLC AND G6 HOSPITLAITY REAL ESTATE LLC DURING THE PERIOD JANUARY 1, 2017 - DECEMBER 31, 20171 NUMBER OF PROPERTIES: 28 AVERAGE PROPERTY SIZE: 60 ROOMS AVERAGE DAILY RATE: $74.24 AVERAGE OCCUPANCY: 78.69% PART 4 NUMBER OF PROPERTIES AND AVERAGE REVENUES FOR MOTEL 6 PROPERTIES WITH 70 ROOMS OR LESS FRANCHISED BY G6 HOSPITALITY FRANCHISING, LLC DURING THE PERIOD JANUARY 1, 2017 - DECEMBER 31, 2017 NUMBER OF PROPERTIES: 392 AVERAGE REVENUES REPORTED: $611,655.78