What is a 'Brand Franchisee' in the context of Americas Best Value Inn?
Americas_Best_Value_Inn Franchise · 2025 FDDAnswer from 2025 FDD Document
- (a) Brand. We and our affiliates own a special system related to the operations, marketing, and distribution of information pertaining to hotels under the Brand ("Brand Hotels"). Owners of Brand Hotels are known as "Brand Franchisees." Subject to the terms and conditions contained in this Agreement, you are a Brand Franchisee.
- (b) Grant of License. We grant you the right, and you undertake the obligation, to operate your Hotel and to use the Marks (defined in Section 11.(a)), Confidential Information (defined in Section 11.(c)), and Brand Standards, as authorized under this Agreement during the Term (the "License"). The Hotel expressly includes only the hotel located at the Premises and you may not transfer the License to another hotel or another location without our prior written permission. The License is non-exclusive, non-transferrable and non-sublicensable. You acknowledge and agree that the License does not extend to any bar, restaurant or other facility located at the Premises, unless separately approved by us in writing. The License granted
to you does not include the right to use "Americas Best Value Inn," "ABVI" or "Americas Best," or any other variation resembling the Brand in your Entity (as defined in Section 15.(c)(i)) name, in an Internet domain name, website, email address, social media account, user name, other online presence or presence on any electronic medium of any kind.
Source: Item 23 — RECEIPTS (FDD pages 71–223)
What This Means (2025 FDD)
According to Americas Best Value Inn's 2025 Franchise Disclosure Document, a 'Brand Franchisee' is defined as an owner of a Brand Hotel, which operates under the Americas Best Value Inn brand. As a Brand Franchisee, you are granted a license to operate your hotel using the brand's Marks, Confidential Information, and Brand Standards, as outlined in the franchise agreement. This license is specifically for the hotel located at the designated premises and cannot be transferred to another location without prior written permission from the franchisor.
It is important to note that the license granted to an Americas Best Value Inn franchisee is non-exclusive, non-transferable, and non-sublicensable. This means that the franchisor can grant similar licenses to other franchisees in the same area, and the franchisee cannot transfer or sublicense their license to another party. Additionally, the license does not automatically extend to any bar, restaurant, or other facility located at the premises unless explicitly approved in writing by the franchisor.
Furthermore, the agreement clarifies that franchisees do not have the right to use "Americas Best Value Inn," "ABVI," or "Americas Best," or any similar variation of the brand name in their entity name, internet domain name, website, email address, social media account, or any other online presence without explicit permission. This restriction is in place to protect the brand's identity and ensure consistent representation across all franchise locations. Prospective franchisees should be aware of these limitations and ensure they comply with all brand standards and usage guidelines.
Finally, Americas Best Value Inn does not grant any exclusive rights or territorial protection around the franchisee's hotel. This means that the franchisor can establish other franchise locations nearby, and the franchisee will not have any exclusive territory to operate within. This lack of territorial protection is a common practice in the franchise industry, and franchisees should consider this factor when evaluating the potential for competition in their market.