What is considered an 'Approval' from Americas Best Value Inn under the franchise agreement?
Americas_Best_Value_Inn Franchise · 2025 FDDAnswer from 2025 FDD Document
-
- Confidentiality of this Agreement. The Franchisee Parties agree that the existence of this Agreement and its terms are strictly confidential and that, therefore, the Franchisee Parties and the other Releasing Parties shall not provide or disclose to any third party, unless authorized in writing to do so by us or properly directed or ordered to do so by public authority, any information regarding the existence of this Agreement, the terms or conditions contained in this Agreement, or any dealings or negotiations with us or any of the Released Parties related to this Agreement.
(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.
(E) the transferee enters an assumption agreement, in form and substance satisfactory to us, under which it assumes all of your obligations under this Agreement; or, if we require, the transferee enters the form of franchise agreement we then offer to new Brand Franchisees (for a term at least equal to the then remaining Term of this Agreement) and such other ancillary agreements as we may require;
(H) the transferee has or you have completed all maintenance, refurbishing, renovating, and upgrading of the Hotel required to conform the Hotel to the Brand Standards then in effect (or the transferee has agreed to a PIP with a time-frame for completion acceptable to us);
Source: Item 23 — RECEIPTS (FDD pages 71–223)
What This Means (2025 FDD)
According to the 2025 Americas Best Value Inn Franchise Disclosure Document, several clauses specify that certain actions or agreements require Americas Best Value Inn's approval, often in writing. For instance, a franchisee needs written permission from Americas Best Value Inn to disclose the franchise agreement's existence or terms to any third party.
Furthermore, the license granted to a franchisee to operate a hotel under the Americas Best Value Inn brand is limited to the specific location and cannot be transferred to another hotel or location without prior written permission from Americas Best Value Inn. This license also does not extend to any bar, restaurant, or other facility located at the premises unless separately approved by Americas Best Value Inn in writing.
In the context of transferring a franchise, Americas Best Value Inn's approval is needed, and several conditions must be met. These include the transferee entering an assumption agreement satisfactory to Americas Best Value Inn, meeting the criteria for new franchisees, and completing required renovations to meet brand standards or agreeing to a Property Improvement Plan (PIP) acceptable to Americas Best Value Inn. Additionally, if the premises are leased, the landlord's allowance to transfer the lease or sublease to the transferee is required. These stipulations ensure that Americas Best Value Inn maintains control over its brand standards and the quality of its franchisees.