Are all fees paid to Americas Best Value Inn nonrefundable?
Americas_Best_Value_Inn Franchise · 2025 FDDAnswer from 2025 FDD Document
ome of or all 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 (5) engage in all other activities not expressly prohibited by this Agreement.
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- Fees. All fees payable to us under this Agreement are fully earned by us upon payment and are nonrefundable, except as otherwise expressly provided in this Agreement. You will pay us the following fees:
- (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"). The Initial Fee must be made to us by cashier's check, bank certified check, wire transfer, ACH, or credit card.
- (b) Property Improvement Plan Fees. In connection with our quality assurance inspections of your Hotel and issuance of any property improvement plan ("PIP"), and if applicable, reinspection following a failed PIP inspection, you will pay us our then-current PIP fee (up to $5,000 as of the Effective Date). The PIP is subject to change pursuant to Section 4.(m).
- (c) Onboarding Administration Fee. You will pay us an onboarding administration fee of $1,000 for onboarding services we provide to you in connection with the opening of you
Source: Item 23 — RECEIPTS (FDD pages 71–223)
What This Means (2025 FDD)
According to the 2025 Americas Best Value Inn Franchise Disclosure Document, fees paid to the company are generally nonrefundable. Specifically, all fees payable under the Franchise Agreement are considered fully earned upon payment and are nonrefundable, unless the agreement explicitly states otherwise.
For a prospective Americas Best Value Inn franchisee, this means that once a fee is paid, it is unlikely to be returned, regardless of whether the services or benefits associated with the fee are fully realized. This policy applies to various fees, including the initial fee, property improvement plan fees, onboarding administration fee, and initial brand training fee.
The initial fee is comprised of $17,500, plus $150 for each guest room exceeding 50. The onboarding administration fee is $1,000, and the initial brand training fee is $1,500. The property improvement plan fee can be up to $5,000. Given the nonrefundable nature of these fees, it is crucial for potential franchisees to carefully evaluate the franchise opportunity and their ability to meet the financial obligations before entering into the agreement. Franchisees should clarify any exceptions or conditions under which a refund might be possible, as these are not detailed in the provided excerpt.