What authority does the Principal have on behalf of an Americas Best Value Inn franchisee Entity?
Americas_Best_Value_Inn Franchise · 2025 FDDAnswer from 2025 FDD Document
- (vi) If you are an Entity, the Principal and the Management Company, if applicable with respect to the Management Company, are authorized, on your behalf, to deal with us in respect of all matters whatsoever which may arise in respect of this Agreement. Any decision made by the Principal or the Management Company will be final and binding upon you, and we will be entitled to rely solely upon the decision of the Principal or Management Company in any such dealings without the necessity of any discussions with any other party named in this Agreement, and we will not be held liable for any actions taken by you, based upon any decision or actions of the Principal or Management Company; and
Source: Item 23 — RECEIPTS (FDD pages 71–223)
What This Means (2025 FDD)
According to the 2025 Americas Best Value Inn FDD, if the franchisee is an entity, the Principal is authorized to act on its behalf in all matters related to the Franchise Agreement. This includes dealing with Americas Best Value Inn regarding any issues that may arise.
Any decision made by the Principal is considered final and binding on the franchisee entity. Americas Best Value Inn is entitled to rely solely on the Principal's decisions without needing to consult with any other party named in the agreement.
Americas Best Value Inn will not be held liable for any actions taken by the franchisee based on the decisions or actions of the Principal. This clause clarifies the scope of authority and responsibility, ensuring Americas Best Value Inn can rely on the Principal's decisions without further verification or liability for the entity's actions stemming from those decisions.