What fee must the transferee or transferor pay to Americas Best Value Inn for a transfer?
Americas_Best_Value_Inn Franchise · 2025 FDDAnswer from 2025 FDD Document
- (F) the transferee or you pay us a transfer fee equal to the Initial Fee as set forth in Section 4.(a);
Upon any transfer of voting or ownership interests in you if you are an Entity, or in any of your owners if such owners are Entities, you or your transferee must immediately pay us an onboarding administration fee in the amount of $1,000 for such transfer for the onboarding services we provide in connection with new ownership of the Hotel. This subsequent onboarding administration fee applies to each transfer and is subject to change in our sole discretion.
- (a) Initial Fee. You must pay us at the time of your execution of this Agreement a non-refundable initial fee equal to the sum of (x) $17,500, plus (y) the product of $150 times the number of Guest Rooms (defined in Section 4.(e)) in excess of 50 (the "Initial Fee").
Source: Item 23 — RECEIPTS (FDD pages 71–223)
What This Means (2025 FDD)
According to the 2025 Americas Best Value Inn Franchise Disclosure Document, a transfer fee is required when transferring ownership. The transferee or the current franchisee must pay Americas Best Value Inn a transfer fee that is equivalent to the initial franchise fee, as detailed in Section 4.(a) of the agreement.
As of the effective date of the 2025 FDD, the initial fee is calculated as $17,500, plus an additional $150 for each guest room exceeding 50. For example, a hotel with 75 guest rooms would have an initial fee of $17,500 + (25 * $150) = $21,250. This same amount would be due as a transfer fee.
In addition to the transfer fee, if the ownership structure changes (e.g., transfer of voting or ownership interests in an entity), either the transferring party or the new owner must pay Americas Best Value Inn an onboarding administration fee of $1,000. This fee covers the costs associated with integrating the new ownership into the Americas Best Value Inn system. This subsequent onboarding administration fee applies to each transfer and is subject to change at Americas Best Value Inn's discretion.