Motel 6 in Canada is franchised by Realstar Hospitality, a Toronto-based operator with locations including Toronto, Ottawa and Niagara Falls — which means the brand-approval side of a resale runs through an Ontario-headquartered franchisor rather than a US parent's Canadian development arm. It's an economy, limited-service motor-lodge format, so the Property Improvement Plan review at resale is typically narrower in scope than a full-service hotel's, even though the real estate closing itself follows the same commercial process.
Motel 6 resales follow the franchisor's own approval process on top of the usual purchase mechanics — here's how the two run together.
Getting approved
The offer covers both the real estate and the Motel 6 franchise agreement together, conditioned on Realstar Hospitality approving the transfer to the incoming owner.
2–4 weeks†The franchisor reviews the incoming operator and conducts a property inspection, sizing a Property Improvement Plan against a limited-service economy format.
3–5 weeks†Because real property is usually involved, mortgage financing, title, survey, and environmental review for the site run alongside the brand approval.
4–7 weeks, in parallel†Getting to closing
A licensed lounge or restaurant isn't part of this economy format, so this step rarely applies — confirmed early rather than assumed.
4–8 weeks, if applicable†The incoming owner signs a new, current-form franchise agreement, incorporating any required upgrades as a closing condition.
negotiated alongside brand approval†Real property, business assets, and the franchise agreement all close together, with a defined timeline for completing any required work after taking over.
1 day, plus a short completion tail†Listed on the CFA's Look For A Franchise directory as an active Canadian franchise operated by Toronto-based Realstar Hospitality, in business in Canada since the early 2000s.
Ontario locations include Toronto, Ottawa and Niagara Falls, and the franchisor itself is headquartered in Toronto.
This is the first real decision in a Motel 6 resale — and it changes what you're buying, what you're taking on, and how the franchise agreement moves.
| Question | Asset purchase | Share purchase |
|---|---|---|
| What you buy | The real property (if included), the motel's operating assets, and the benefit of the Motel 6 franchise agreement, subject to Realstar Hospitality's consent. | The shares of the corporation holding the property and the franchise agreement — everything it owns and owes. |
| Seller's liabilities | Generally stay behind with the seller, apart from anything specifically assumed in the agreement. | Generally come with the company, known and unknown, including any mortgage or lease obligations. |
| Franchisor consent & PIP | Required for the transfer, typically paired with a property review sized to this economy motor-lodge format. | Required for the change of control, with the same property review still applying to the building itself. |
| Real property | Title, financing, survey, and environmental due diligence proceed as a standard commercial real estate closing. | The property stays titled in the corporation's name — diligence still confirms what the company actually holds. |
| Staff (ESA) | Employment Standards Act continuity rules typically apply to how motel staff carry over. | Employment generally continues uninterrupted — the employer doesn't change. |
| Tax angle | Buyer generally gets a stepped-up cost base on the real property and business assets purchased; HST self-assessment applies to the real property transfer. | Seller may access the lifetime capital gains exemption on qualifying shares; the property's cost base carries over. |
The real property (if included), the motel's operating assets, and the benefit of the Motel 6 franchise agreement, subject to Realstar Hospitality's consent.
The shares of the corporation holding the property and the franchise agreement — everything it owns and owes.
Generally stay behind with the seller, apart from anything specifically assumed in the agreement.
Generally come with the company, known and unknown, including any mortgage or lease obligations.
Required for the transfer, typically paired with a property review sized to this economy motor-lodge format.
Required for the change of control, with the same property review still applying to the building itself.
Title, financing, survey, and environmental due diligence proceed as a standard commercial real estate closing.
The property stays titled in the corporation's name — diligence still confirms what the company actually holds.
Employment Standards Act continuity rules typically apply to how motel staff carry over.
Employment generally continues uninterrupted — the employer doesn't change.
Buyer generally gets a stepped-up cost base on the real property and business assets purchased; HST self-assessment applies to the real property transfer.
Seller may access the lifetime capital gains exemption on qualifying shares; the property's cost base carries over.
We tell you which structure fits — before you sign anything.
No open-ended hourly surprises — the cost is confirmed in writing before any work begins.
| Type of work | Fee | How it's confirmed |
|---|---|---|
| Straightforward purchase or sale | Starting from $3,388.87 Our charges · taxes included | Confirmed in writing once we see the agreement. |
| Larger or more complex deal | Quoted to scope | Short call → fixed written quote before any work begins. |
| Searches, filings & third-party fees | At cost | Itemized on your invoice, not marked up. |
A single, already-flagged Motel 6 property changing hands, with the real estate and franchise agreement moving together in one transaction.
Start my file →A deal involving an existing mortgage, an unusually large PIP for an older property, or a buyer acquiring more than one flagged property at once.
Book a consultation →Not sure which you are? That's our job to figure out, not yours. As a rough guide, most deals under a couple of million dollars are the first kind — above that, you're usually in Mergers & Acquisitions territory.
It can simplify practical coordination — approvals, site visits, and communication with the franchisor run through an Ontario-based company rather than a US parent's Canadian development arm — though the legal requirements themselves (consent, PIP review, new agreement) are the same as at brands franchised from abroad.
Generally, yes — the PIP scope tends to track the format, and an economy motor-lodge property usually means a narrower renovation list than a full-service banner with meeting space and a restaurant. The actual scope still depends on the specific property's condition, confirmed by inspection before terms are finalized.
No — this economy format doesn't include a licensed lounge or restaurant, so it's uncommon for an AGCO transfer to be part of the deal. We confirm this early for your specific property rather than assume it either way.
Not directly — each property's franchise agreement and approval process is specific to its own flag, even though the two brands share the same Canadian franchisor. It's worth knowing they're related if you're comparing opportunities across both brands.
Not automatically, even with a Toronto-based franchisor — brand approval and the real estate closing (mortgage financing, title, survey and environmental diligence) are separate workstreams that happen to run in parallel, so the deal's overall timeline still needs both tracked and coordinated rather than assumed to move together.
Related
Where we close franchise resale deals
Treadstone Law is an independent law firm. We act for buyers and sellers of franchise businesses. We are not affiliated with, endorsed by, or retained by Motel 6 or its franchisor.
Tell us about your Motel 6 resale — we'll point you the right way and confirm the cost in writing before any work begins.