Can Americas Best Value Inn engage in activities not expressly prohibited by the Americas Best Value Inn Franchise Agreement?
Americas_Best_Value_Inn Franchise · 2025 FDDAnswer from 2025 FDD Document
We and our affiliates retain the right to engage in any and all activities that we (or they) deem appropriate and are not expressly prohibited under the Franchise Agreement, at all times, anywhere in the world, including the right to:
- (a) establish and operate, and allow others to establish and operate ABVI Hotels at any location on such terms and conditions we deem appropriate;
- (b) establish, operate, and license others to establish and operate, anywhere in the world other than the premises of your Hotel, Network Hotels and other businesses that offer products and services which are identical or similar to the products and services offered by ABVI Hotels under any trade names, trademarks, service marks, and commercial symbols;
- (c) purchase, merge, acquire, be acquired or affiliate with an existing competitive or noncompetitive franchise network, chain or any other business regardless of the location of that network's, chain's, or business' facilities, and to operate, franchise, or license those businesses under the Marks or any other marks following the purchase, merger, acquisition, or affiliation, regardless of the location of those businesses (or the franchisees or licensees of those businesses);
- (d) sell our ownership interests, our assets, the Marks, and/or the Brand to a third party; become publicly-traded; engage in a private placement of some or all of our securities; merge, acquire other corporations or entities, or be acquired by another corporation or entity; and/or undertake a refinancing, recapitalization, leveraged buyout or other economic or financial restructuring; and
- (e) engage in all other activities not expressly prohibited by the Franchise Agreement.
Source: Item 12 — TERRITORY (FDD pages 54–56)
What This Means (2025 FDD)
According to the 2025 Americas Best Value Inn Franchise Disclosure Document, Americas Best Value Inn and its affiliates retain the right to engage in any activities they deem appropriate, provided those activities are not expressly prohibited by the Franchise Agreement. This applies at all times and anywhere in the world.
Specifically, Americas Best Value Inn has the right to establish and operate Americas Best Value Inn Hotels at any location under terms and conditions they deem appropriate. They can also establish, operate, and license others to operate hotels under Network Marks and other businesses offering similar products and services, anywhere in the world except on the franchisee's premises.
Additionally, Americas Best Value Inn can purchase, merge, acquire, or affiliate with existing franchise networks or businesses, regardless of location, and operate or franchise those businesses under the Marks or any other marks. They also have the right to sell their ownership interests, assets, Marks, or the Brand to a third party, become publicly traded, engage in private placements, merge with or acquire other entities, or undertake financial restructuring.
This broad reservation of rights means that as a franchisee, your rights are limited to those explicitly granted in the Franchise Agreement, and Americas Best Value Inn retains significant freedom to act in its own interest, even if those actions may compete with your hotel. Prospective franchisees should carefully consider this non-exclusivity and the potential for competition when evaluating the franchise opportunity.