What happens if an Americas Best Value Inn franchisee does not own the premises?
Americas_Best_Value_Inn Franchise · 2025 FDDAnswer from 2025 FDD Document
erting an existing hotel into a Brand Hotel, pursuant to the Franchise Agreement. Capitalized terms used, but not defined, herein shall have the meanings given them in the Franchise Agreement.
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- Interest in Premises. You must deliver to us, prior to the Opening Date, and in any event no later than thirty (30) days after the Effective Date, either a deed reflecting your ownership of the Premises (the "Deed") or a copy of your lease for the Premises that allows you the right to enter into the Franchise Agreement (the "Lease"). If you fail to timely provide us with the Deed or Lease, we may immediately terminate the Franchise Agreement. You represent and warrant that, throughout the Term of the Franchise Agreement, you will be entitled to possession of the Premises and your Hotel without restrictions that would interfere with your performance under the Franchise Agreement, subject to the reasonable requirements of any financing secured by your Hotel. You will provide us copies of all documentation reflecting your right to possession of the Premises at any time upon our request. Further, if you do not own the Premises, you must provide us with copies of any amendment, addendum, extension, or other modification to the Lease within five days following execution. You acknowledge and agree that any of our involvement in the approval of location is for our sole benefit. You agree that you are not relying on our site approval for your benefit.
Source: Item 22 — CONTRACTS (FDD page 71)
What This Means (2025 FDD)
According to the 2025 Americas Best Value Inn Franchise Disclosure Document, if a franchisee does not own the premises, they must provide a copy of their lease to the franchisor. Specifically, the franchisee must deliver to Americas Best Value Inn either a deed reflecting ownership of the premises or a copy of the lease for the premises that allows them the right to enter into the Franchise Agreement. This documentation must be provided prior to the opening date, and no later than 30 days after the effective date of the agreement.
Failure to provide the deed or lease within the specified timeframe may result in immediate termination of the Franchise Agreement by Americas Best Value Inn. The franchisee also warrants that throughout the term of the Franchise Agreement, they will be entitled to possession of the premises and their hotel without restrictions that would interfere with their performance under the Franchise Agreement, subject to the reasonable requirements of any financing secured by their hotel.
Furthermore, the franchisee is obligated to provide copies of any amendments, addenda, extensions, or other modifications to the lease within five days of execution. This ensures that Americas Best Value Inn is kept informed of any changes to the franchisee's right to possess and operate the hotel premises. The franchisee also acknowledges that Americas Best Value Inn's involvement in site approval is solely for their own benefit, and the franchisee is advised to seek advice from their own professional advisors regarding the lease or purchase of the premises.