What constitutes a default under the Note for Americas Best Value Inn?
Americas_Best_Value_Inn Franchise · 2025 FDDAnswer from 2025 FDD Document
Any default under the terms of the Agreement or this Note shall be deemed a default of the Agreement and this Note, and the Holder may pursue its remedies as available under the Agreement and this Note.
- a.
This Note is not intended to be exhaustive in nature, nor is it intended to set forth all of Holder's rights.
It does not modify, replace, or affect any other rights, default or termination notices under the Agreement, or any other agreement with Holder regarding Maker's Hotel.
Holder does not waive any of its legal or equitable rights (including the right to specify additional defaults) or remedies.
Source: Item 22 — CONTRACTS (FDD page 71)
What This Means (2025 FDD)
According to the 2025 Franchise Disclosure Document, any default under the terms of the Franchise Agreement with Americas Best Value Inn or the Initial Fee Promissory Note (the Note) will be considered a default of both the agreement and the note. This means that if a franchisee fails to meet the obligations outlined in either document, Americas Best Value Inn has the right to pursue available remedies under both the Franchise Agreement and the Note.
Americas Best Value Inn also retains broad rights regarding potential defaults. The Note does not modify or replace any other default or termination notices under the Franchise Agreement or any other agreement with the Holder regarding the Maker's Hotel. The Holder (Americas Best Value Inn) does not waive any of its legal or equitable rights, including the right to specify additional defaults or remedies.
This clause gives Americas Best Value Inn significant latitude in determining what constitutes a default. A prospective franchisee should carefully review the Franchise Agreement and any related documents to fully understand their obligations and the potential consequences of failing to meet them. It would be prudent to seek legal counsel to clarify the scope of potential defaults and the remedies available to Americas Best Value Inn.