When is garage-keeper's liability insurance required for an Americas Best Value Inn?

According to Americas Best Value Inn's 2025 Franchise Disclosure Document, garage-keeper's liability insurance is required to the extent that the Premises operations include parking operations. The insurance limit must be adequate to cover the full actual value of all automobiles that are in the franchisee's care, custody, and control at any one time.

This means that if an Americas Best Value Inn franchisee offers parking services as part of their hotel operations, they must obtain garage-keeper's liability insurance. This insurance protects the franchisee against liability for damage to customers' vehicles while they are parked on the premises. The required coverage amount is determined by the total value of all vehicles that could be in the franchisee's care at any given moment.

For a prospective Americas Best Value Inn franchisee, this requirement highlights the importance of assessing the scope of their planned operations. If parking services are to be offered, the franchisee must factor in the cost of garage-keeper's liability insurance when evaluating the overall financial feasibility of the franchise. It is also crucial to accurately estimate the potential value of vehicles in their care to ensure adequate coverage limits are secured.

Furthermore, the FDD emphasizes that the franchisor may periodically change the amounts of coverage required and may require different or additional kinds of insurance, including excess liability insurance. It is the franchisee's responsibility to stay informed about these changes and maintain the necessary insurance coverage to protect their business and meet the franchisor's requirements.