For an Americas Best Value Inn franchise, who owns the goodwill associated with the Marks?
Americas_Best_Value_Inn Franchise · 2025 FDDAnswer from 2025 FDD Document
- (e) Ownership; Inurement Solely to Us. Except as expressly granted in this Agreement, you have no ownership or other rights in the Marks.
We are the owner, or authorized licensee, of the Marks.
All goodwill associated with the Marks and the Hotel inures directly and exclusively to our (or our licensor's) benefit.
Source: Item 23 — RECEIPTS (FDD pages 71–223)
What This Means (2025 FDD)
According to the 2025 Americas Best Value Inn FDD, Americas Best Value Inn (or its licensor) owns all goodwill associated with the Marks and the Hotel. The FDD specifies that, except as expressly granted in the agreement, the franchisee has no ownership or other rights in the Marks. The Marks refer to the service mark Americas Best Value Inn®, America's Best Value Inn & Suites® and all other trademarks, service marks, trade names, logos, and commercial symbols that Americas Best Value Inn authorizes the franchisee to use as part of the Brand.
This means that while a franchisee operates an Americas Best Value Inn hotel, the reputation and customer recognition built up through the use of the Americas Best Value Inn brand primarily benefits the franchisor. The franchisee is essentially contributing to the overall brand equity of Americas Best Value Inn.
Upon termination or expiration of the franchise agreement, the franchisee must cease operating under the Americas Best Value Inn brand and discontinue all use of the Marks. This includes de-identifying the premises and transferring control of any related online presence to Americas Best Value Inn. This underscores that the goodwill remains with the franchisor, not the franchisee, after the business relationship ends.