What costs are NOT included in the estimates for new Americas Best Value Inn developments?
Americas_Best_Value_Inn Franchise · 2025 FDDAnswer from 2025 FDD Document
Note 11 For new developments, these estimates include FF&E for public spaces and Guest Rooms but does not include kitchen equipment, back-of-the-house equipment, or pools, as those vary significantly by property and build.
Note 12 This estimate includes a vendor site survey (if needed); and fabrication and installation of exterior signage.
The estimate includes the cost of painting cabinets and poles but does not include any electrical/wiring; permits; or freight/shipping.
- Note 20 These amounts include operating supplies & equipment ("OS&E") for Guest Rooms and common area marketing materials.
Estimates do not include food and beverage equipment (e.g., coffee equipment), housekeeping equipment, or other OS&E, or freight charges, taxes, tariffs, installation or similar fees.
- Note 31 The additional funds represent certain expenses that you will incur in the operation of the business. You may need these funds to operate your Hotel during its three-month initial phase following activation in our CRS. The estimated amount covers items such as payroll costs, rent, utilities, on-going advertising, facility expenses, security, and maintenance - but does not include any salary or allowance for an owner's draw, any amounts you must pay us, or any additional inventory you may need after your initial inventory is consumed.
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 32–38)
What This Means (2025 FDD)
According to the 2025 Americas Best Value Inn Franchise Disclosure Document, several potential costs are not included in the estimated initial investment for new hotel developments. Specifically, the estimates for Furniture, Fixtures, and Equipment (FF&E) do not include kitchen equipment, back-of-the-house equipment, or pools, as these costs can vary significantly depending on the property and build.
Additionally, the estimate for exterior signage covers painting cabinets and poles but excludes expenses related to electrical wiring, permits, and freight or shipping. The estimates for Operating Supplies & Equipment (OS&E) for guest rooms and common areas do not include food and beverage equipment (such as coffee equipment), housekeeping equipment, other OS&E items, or freight charges, taxes, tariffs, installation fees, or similar fees.
Finally, the additional funds needed to operate the hotel during its initial three months do not include any salary or allowance for an owner's draw, any amounts the franchisee must pay to Americas Best Value Inn, or any additional inventory needed after the initial inventory is consumed. These exclusions highlight the importance of conducting thorough due diligence and budgeting for potential expenses beyond the initial estimates provided in the FDD.