What are some of the conditions Americas Best Value Inn may impose on the initial and continued approval of a supplier?
Americas_Best_Value_Inn Franchise · 2025 FDDAnswer from 2025 FDD Document
We have the right to require as a condition of our initial and continued approval that our representatives are permitted to inspect the supplier's facilities, and that the supplier attend our brand conference and enter into our then-applicable supplier agreement. We currently do not charge a fee for the supplier approval process, but we may do so. We may change our approval process or supplier criteria at any time. If we approve a supplier as to any goods, services, suppliers or materials, we must grant our approval in writing. We may condition our initial and continued approval of a supplier on certain requirements, such as delivery frequency, standards of service (including prompt attention to complaints), concentration of purchases, insurance protection, the supplier's willingness to enter into indemnity and confidentiality agreements, payment of reasonable license fees (if Marks are used), and other criteria. Other than this description of our criteria, we do not disclose any further details of our criteria for approving suppliers to franchisees.
We may approve suppliers on a temporary basis and/or revoke approval of Approved Suppliers who no longer satisfy our criteria for suppliers or do not pass reinspection, and if that happens, we will provide reasonable written notice of such disapproval to you.
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 38–41)
What This Means (2025 FDD)
According to Americas Best Value Inn's 2025 Franchise Disclosure Document, Americas Best Value Inn has the right to impose certain conditions for both the initial and ongoing approval of suppliers. These conditions can include allowing Americas Best Value Inn representatives to inspect the supplier's facilities to ensure they meet the required standards. Additionally, Americas Best Value Inn may require the supplier to attend their brand conference, fostering a direct relationship and better understanding of brand expectations. Furthermore, the supplier may be required to enter into Americas Best Value Inn's supplier agreement, formalizing the terms and conditions of their partnership.
Americas Best Value Inn may also condition their approval on specific requirements related to the supplier's operations. These can include stipulations around delivery frequency to ensure timely and consistent supply, standards of service that mandate prompt attention to any complaints, and expectations regarding the concentration of purchases. To protect Americas Best Value Inn's interests, suppliers may also be required to maintain adequate insurance protection and demonstrate a willingness to enter into indemnity and confidentiality agreements. If the supplier intends to use Americas Best Value Inn's marks, they may also be subject to paying reasonable license fees.
Americas Best Value Inn maintains the discretion to modify their approval process and supplier criteria at any time. While they do not currently charge a fee for the supplier approval process, they reserve the right to implement one in the future. It is important to note that Americas Best Value Inn may grant approvals to suppliers on a temporary basis and can revoke approval if a supplier no longer meets their criteria or fails a reinspection. In such cases, Americas Best Value Inn will provide reasonable written notice of the disapproval to the franchisee.