Does Americas Best Value Inn's approval of a site guarantee its suitability for the franchisee's benefit?
Americas_Best_Value_Inn Franchise · 2025 FDDAnswer from 2025 FDD Document
You acknowledge and agree that any of our involvement in the approval of location is for our sole benefit.
You agree that you are not relying on our site approval for your benefit.
You further acknowledge that you have been advised to obtain the advice of your own professional advisors in connection with the Lease, or if applicable, in connection with your purchase of the Premises.
Source: Item 22 — CONTRACTS (FDD page 71)
What This Means (2025 FDD)
According to the 2025 Americas Best Value Inn Franchise Disclosure Document, the franchisor's involvement in site approval is solely for their own benefit, and franchisees are explicitly advised not to rely on this approval for their own purposes. This is detailed in the Rider annexed to and forming part of the Franchise Agreement, applicable whether the franchisee is converting an existing hotel or constructing a new one.
Specifically, the FDD states that franchisees acknowledge and agree that any involvement by Americas Best Value Inn in the approval of a location is for the franchisor's sole benefit. Furthermore, franchisees agree that they are not relying on the franchisor's site approval for their own benefit. The document also emphasizes that franchisees have been advised to seek advice from their own professional advisors regarding the lease or purchase of the premises.
This disclaimer has significant implications for prospective Americas Best Value Inn franchisees. It underscores the importance of conducting independent due diligence and seeking expert advice to assess the suitability of a location. Franchisees should not assume that Americas Best Value Inn's approval guarantees the site's potential for success or compliance with local regulations. Instead, franchisees bear the responsibility for ensuring the location meets their specific needs and business objectives, with the support of their own consultants and advisors.