If acquiring an existing Americas Best Value Inn, what is considered the Opening Date?
Americas_Best_Value_Inn Franchise · 2025 FDDAnswer from 2025 FDD Document
You agree to open your Hotel for business by the date set forth on Exhibit A (the "Opening Date"), unless we otherwise agree in writing. If you are acquiring an existing Brand Hotel, the Opening Date will be the date you close on the acquisition of the existing Brand Hotel.
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 Opening Date for a franchisee acquiring an existing Americas Best Value Inn hotel is the date the acquisition closes. This means that the day the franchisee finalizes the purchase of the existing hotel, as legally documented, is considered the official Opening Date under the franchise agreement.
This definition of Opening Date is significant because it triggers several obligations and timelines for the franchisee. For instance, the term of the franchise agreement, which is initially five years, commences from this date. Additionally, the franchisee's obligation to make monthly royalty and brand promotion fee payments begins on the Opening Date.
It is important for prospective franchisees to understand this definition, as it sets the stage for their financial and operational responsibilities from the moment they acquire the existing hotel. They should ensure all acquisition processes are completed efficiently to align with their business plans and financial projections.