Can an Americas Best Value Inn franchisee lease their Hotel to another individual or Entity?
Americas_Best_Value_Inn Franchise · 2025 FDDAnswer from 2025 FDD Document
(E) the transferee enters an assumption agreement, in form and substance satisfactory to us, under which it assumes all of your obligations under this Agreement; or, if we require, the transferee enters the form of franchise agreement we then offer to new Brand Franchisees (for a term at least equal to the then remaining Term of this Agreement) and such other ancillary agreements as we may require;
(F) the transferee or you pay us a transfer fee equal to the Initial Fee as set forth in Section 4.(a);
(G) the transferee has satisfactorily completed our application procedures and meets our criteria for new Brand Franchisees in effect at that time;
(H) the transferee has or you have completed all maintenance, refurbishing, renovating, and upgrading of the Hotel required to conform the Hotel to the Brand Standards then in effect (or the transferee has agreed to a PIP with a time-frame for completion acceptable to us);
(I) if the Premises is leased, the landlord allows you to transfer the lease or sublease the Premises to the transferee;
(J) if your owners or you finance any part of the purchase price, we reserve the right to require that you and your owners subordinate any of the transferee's obligations under promissory notes or agreements with you or your security interests reserved in your Hotel, to the transferee's obligation to pay Royalties, Brand Promotion Fees, Conference Fees, Revenue Management Insights Fees, Operations Insights Fees, PMS-to-CRS Enhanced Connectivity Fees and other amounts due to us, our affiliates, and third-party vendors and otherwise to comply with this Agreement;
(K) you and your transferring owners will not directly or indirectly at any time or in any manner (except with respect to other hotels you own and operate) identify yourself or themselves or any business as a current or former Hotel or as one of our Brand Franchisees; use any Mark, any colorable imitation of a Mark, or oth
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 does allow for the transfer of the franchise to another party, which would effectively allow a franchisee to lease their hotel to another individual or entity, provided certain conditions are met. Specifically, if the premises is leased, the landlord must allow the transfer of the lease or sublease of the premises to the transferee.
Several other conditions must also be satisfied for Americas Best Value Inn to approve the transfer. The transferee must enter an assumption agreement, or if required by Americas Best Value Inn, enter the current form of the franchise agreement for new franchisees for a term at least equal to the remaining term of the original agreement. The transferee must also complete the application procedures and meet the criteria for new Americas Best Value Inn franchisees. Additionally, all required maintenance, refurbishing, renovating, and upgrading of the hotel must be completed to meet the current brand standards, or the transferee must agree to a Property Improvement Plan (PIP) with a completion timeframe acceptable to Americas Best Value Inn.
Furthermore, the franchisee or the transferee is responsible for paying a transfer fee equal to the initial fee as outlined in the franchise agreement. If the franchisee finances any part of the purchase price, Americas Best Value Inn reserves the right to require the franchisee to subordinate the transferee's obligations under promissory notes or agreements to the transferee's obligation to pay royalties, brand promotion fees, and other amounts due to Americas Best Value Inn and its affiliates. The transferring franchisee must also agree not to identify themselves or any business as a current or former Americas Best Value Inn franchisee, except with respect to other hotels they own and operate.