factual

If converting to an Americas Best Value Inn, what is a PIP and what is its purpose?

Americas_Best_Value_Inn Franchise · 2025 FDD

Answer from 2025 FDD Document

e Brand, we will provide you the following assistance (at our discretion):

  • If you are converting an existing hotel into an ABVI Hotel, we will conduct an initial inspection of your Hotel and develop a PIP of improvements required for your Hotel to meet Brand Standards. You must complete renovation work on your Hotel in accordance with the PIP. (Franchise Agreement, Section 8.(a); Conversion Rider, attached as Exhibit D-1 to the Franchise Agreement);

  • Review and approve your plans, layouts, specifications and drawings for your Hotel (the "Plans") and your plans, layouts, specifications and drawings for the proposed furnishings, fixtures, equipment and décor of your Hotel (the "Designs"), at our election. You are responsible for ensuring your Plans and Designs comply with all applicable laws, rules, permits, licenses, and other governmental requirements. (Franchise Agreement, Sections 8.(a) and 8.(b); Conversion Rider and New Construction Rider, attached as Exhibit D-1 and Exhibit D-2 to the Franchise Agreement, respectively);

  • Inspect your Hotel, at our election, during or following renovation or construction, as applicable, to determine compliance with the Brand Standards. (Conversion Rider and New Construction Rider, attached as Exhibit D-1 and Exhibit D-2 to the Franchise Agreement, respectively);

  • Provide you with onboarding services. (Franchise Agreement, Section 4.(c));

  • Gather all information from you necessary to build your Hotel into the CRS . (Franchise Agreement, Section 6.(a));

Source: Item 11 — **FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING (FDD pages 44–54)

What This Means (2025 FDD)

According to the 2025 Americas Best Value Inn Franchise Disclosure Document, a PIP, or Property Improvement Plan, is a set of written specifications for upgrading, renovating, constructing, and furnishing an existing hotel to meet the brand's standards. If you are converting an existing hotel into an Americas Best Value Inn, the franchisor will conduct an initial inspection and develop a PIP of improvements required for the hotel to meet brand standards.

The PIP is included in the Conversion Rider, which is attached as an exhibit to the Franchise Agreement. It details the required renovation work and alterations necessary for compliance with Americas Best Value Inn's brand standards, including the required start and completion dates for the renovation work.

Before starting any renovation work, franchisees must obtain all necessary insurance, including builder's risk, and all permits and certifications required for lawful renovation of the hotel, such as zoning, access, sign, and building permits. Failure to commence or complete the renovation work by the dates specified in the PIP may result in the termination of the Franchise Agreement.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.