What is the definition of 'License' in the Americas Best Value Inn franchise agreement?
Americas_Best_Value_Inn Franchise · 2025 FDDAnswer from 2025 FDD Document
3. Grant of License.
- (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 the 2025 Americas Best Value Inn Franchise Disclosure Document, the 'License' refers to the right granted to the franchisee to operate their hotel using the brand's trademarks, confidential information, and brand standards. This license is specifically authorized under the franchise agreement during its term. The agreement emphasizes that the license applies only to the hotel located at the specified premises and cannot be transferred to another hotel or location without prior written consent from Americas Best Value Inn.
Furthermore, the license is explicitly defined as non-exclusive, non-transferable, and non-sublicensable, meaning the franchisee cannot grant these rights to another party. The license's scope is limited, as it does not automatically extend to any bar, restaurant, or other facility located on the premises unless Americas Best Value Inn provides separate written approval.
Additionally, the franchisee is restricted from using "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 ensures that the franchisee's branding remains distinct from the official brand presence of Americas Best Value Inn, maintaining brand consistency and control.