Studio 6 is Realstar Hospitality's extended-stay sibling to Motel 6 — a smaller Canadian network built around guests staying weeks or months rather than a night or two. That guest-duration model raises a legal question shorter-stay hotel brands don't usually face: at what point does a long-staying guest start to look like a residential tenant under Ontario's Residential Tenancies Act, and how the existing operator has documented and managed that line matters to what you're actually buying.
Studio 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 Studio 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 the extended-stay format's suite-style units.
3–5 weeks†Real property diligence runs alongside a review of how the seller has documented stay limits and renewal terms for long-staying guests.
4–7 weeks, in parallel†Getting to closing
A licensed lounge or restaurant isn't part of this 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 close together, with the guest-transition and stay-documentation practices carrying forward to the new owner.
1 day, plus a short completion tail†Listed on the CFA's Look For A Franchise directory as an active, if smaller, Canadian franchise operated by Toronto-based Realstar Hospitality alongside its Motel 6 and Days Inn portfolios.
Operated by the same Toronto-based Realstar Hospitality franchisor that develops the brand's other Canadian locations.
This is the first real decision in a Studio 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 property's operating assets, and the benefit of the Studio 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. |
| Guest agreements | Reviewed for how long-staying guests have been documented — stay limits, renewal terms, and identification as a guest rather than a tenant — to manage Residential Tenancies Act exposure. | The same guest-documentation practices continue with the corporation, so historical gaps stay with the company either way. |
| Franchisor consent & PIP | Required for the transfer, typically paired with a property review sized to the suite-style extended-stay 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. |
| 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 property's operating assets, and the benefit of the Studio 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.
Reviewed for how long-staying guests have been documented — stay limits, renewal terms, and identification as a guest rather than a tenant — to manage Residential Tenancies Act exposure.
The same guest-documentation practices continue with the corporation, so historical gaps stay with the company either way.
Required for the transfer, typically paired with a property review sized to the suite-style extended-stay 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.
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 Studio 6 property changing hands, with the real estate and franchise agreement moving together and clean guest-documentation practices in place.
Start my file →A property where some guests' stay history raises a Residential Tenancies Act question that needs to be resolved before terms are final, 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, depending on the facts — Ontario's Residential Tenancies Act is aimed at residential tenancies, not hotel stays, but a long enough stay without the operator maintaining hotel-style formalities can start to blur that line. That's exactly why we review how the current operator has documented stay limits and renewals before you take over, rather than assuming the hotel exemption automatically applies to every guest.
It's a smaller network under the same Realstar Hospitality franchisor, so there's less of a long resale track record to draw comparisons from. That doesn't change the legal process, but it's part of why we look closely at the specific property's own history rather than leaning on brand-wide patterns.
Yes, in scope if not in kind — the review still covers building condition and brand standards, but it's applied against suite-style units built for longer stays, like in-room kitchenettes, rather than standard motel rooms.
No — this format doesn't include a licensed lounge or restaurant, so it's uncommon for an AGCO transfer to be part of the deal.
Possibly. Ontario courts have read the franchise resale-disclosure exemption narrowly, and franchisor involvement in approving the sale can be enough to trigger a full disclosure requirement even where the deal is framed as a private resale.
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 Studio 6 or its franchisor.
Tell us about your Studio 6 resale — we'll point you the right way and confirm the cost in writing before any work begins.