Does the Americas Best Value Inn franchise agreement allow for any exceptions to the payment obligations?
Americas_Best_Value_Inn Franchise · 2025 FDDAnswer from 2025 FDD Document
in Section 4. You shall not alter or close any such account, except with our prior written approval. If we permit you to pay by any other means, we may require payment of an alternative payment fee that is subject to change. We may, at any time, modify the required method of payment by providing you with at least 30 days' prior notice. Your obligation to pay amounts due to us or to any of our designees will not be suspended as a result of any interruption to your business, regardless
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 franchise agreement stipulates that a franchisee's obligation to make payments is absolute and unconditional. These payment obligations are not subject to any setoff for any reason. This means that Americas Best Value Inn franchisees cannot deduct any amounts they believe are owed to them from their payments to the company.
Americas Best Value Inn may, at any time, modify the required method of payment by providing at least 30 days' prior notice. However, a franchisee's obligation to pay amounts due to Americas Best Value Inn or its designees will not be suspended as a result of any interruption to their business, regardless of the cause. All amounts payable by a franchisee to Americas Best Value Inn or its affiliates must be in United States Dollars ($USD), unless Americas Best Value Inn specifies otherwise.
This section of the franchise agreement is designed to ensure that Americas Best Value Inn receives timely and consistent payments from its franchisees, regardless of any disputes or business interruptions. Prospective franchisees should be aware of this provision and carefully consider its implications before entering into a franchise agreement with Americas Best Value Inn. It is fairly standard in the franchise industry for agreements to include language protecting the franchisor's revenue stream.