What is the base initial fee for an Americas Best Value Inn franchise?
Americas_Best_Value_Inn Franchise · 2025 FDDAnswer from 2025 FDD Document
FEES**
Initial Fee
You must pay us an initial fee equal to the sum of (a) $17,500 plus (b) the product of $150 times the number of Guest Rooms in excess of 50 (the "Initial Fee") when you sign the Franchise Agreement. The Initial Fee is fully earned and non-refundable and must be paid before we will countersign the Franchise Agreement, unless we have agreed to permit you to make installment payments, in which case you will sign a promissory note and make payments as provided under the promissory note. During the 2024 fiscal year, we offered qualified franchisees financing up to $20,000 for the Initial Fee. See Item 10 for additional details relating to initial fee installment payments. During the 2024 fiscal year, we charged discounted Initial Fees ranging from $7,500 (for an ABVI Hotel with 40 Guest Rooms) to $17,500 (for an ABVI Hotel with 135 Guest Rooms).
"Guest Rooms" means transient hotel rooms located at the Hotel and is not dependent upon occupancy of the hotel rooms. By way of example, if your Hotel has 70 Guest Rooms, the Initi
Source: Item 5 — INITIAL FEES (FDD pages 22–24)
What This Means (2025 FDD)
According to the 2025 Americas Best Value Inn Franchise Disclosure Document, the initial fee is calculated as the sum of $17,500 plus $150 for each guest room exceeding 50. This fee is required when signing the Franchise Agreement and is non-refundable unless installment payments are permitted, in which case a promissory note is required.
For example, if an Americas Best Value Inn hotel has 70 guest rooms, the initial fee would be $20,500, calculated as $17,500 plus $150 multiplied by the 20 rooms exceeding the 50-room threshold. The FDD also notes that during the 2024 fiscal year, Americas Best Value Inn offered qualified franchisees financing up to $20,000 for the initial fee and charged discounted initial fees ranging from $7,500 to $17,500.
Prospective franchisees should note that the initial fee structure can vary based on the number of guest rooms. Additionally, the availability of financing and discounted fees may change. It is important to clarify the current financing options and fee structure with Americas Best Value Inn before signing the Franchise Agreement.