Does Americas Best Value Inn grant franchisees an exclusive territory?
Americas_Best_Value_Inn Franchise · 2025 FDDAnswer from 2025 FDD Document
We grant franchisees a non-exclusive license to operate ABVI Hotels at a specified location. You will not receive an exclusive territory. You may face competition from other franchisees, from outlets that we own, or from other channels of distribution or competitive brands that we control.
We and our affiliates retain the right to engage in any and all activities that we (or they) deem appropriate and are not expressly prohibited under the Franchise Agreement, at all times, anywhere in the world, including the right to:
- (a) establish and operate, and allow others to establish and operate ABVI Hotels at any location on such terms and conditions we deem appropriate;
- (b) establish, operate, and license others to establish and operate, anywhere in the world other than the premises of your Hotel, Network Hotels and other businesses that offer products and services which are identical or similar to the products and services offered by ABVI Hotels under any trade names, trademarks, service marks, and commercial symbols;
- (c) purchase, merge, acquire, be acquired or affiliate with an existing competitive or noncompetitive franchise network, chain or any other business regardless of the location of that network's, chain's, or business' facilities, and to operate, franchise, or license those businesses under the Marks or any other marks following the purchase, merger, acquisition, or affiliation, regardless of the location of those businesses (or the franchisees or licensees of those businesses);
- (d) sell our ownership interests, our assets, the Marks, and/or the Brand to a third party; become publicly-traded; engage in a private placement of some or all of 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
- (e) engage in all other activities not expressly prohibited by the Franchise Agreement.
Source: Item 12 — TERRITORY (FDD pages 54–56)
What This Means (2025 FDD)
According to Americas Best Value Inn's 2025 Franchise Disclosure Document, the franchise agreement does not grant exclusive territorial rights to its franchisees. Instead, franchisees receive a non-exclusive license to operate an Americas Best Value Inn hotel at a specific location. This means that franchisees may face competition from other franchisees, outlets owned by the franchisor, other distribution channels, or competitive brands.
Americas Best Value Inn and its affiliates retain the right to engage in activities they deem appropriate, including establishing and operating other Americas Best Value Inn hotels at any location and licensing others to do the same. They can also operate Network Hotels and other businesses offering similar products and services under any trade names, trademarks, service marks, and commercial symbols.
This lack of territorial exclusivity means that a franchisee's success is highly dependent on their ability to compete effectively within their local market. Prospective franchisees should carefully evaluate the competitive landscape in their desired location and consider the potential impact of new Americas Best Value Inn locations or competing brands entering the market.