If an Americas Best Value Inn franchisee has owners, are they also required to provide a release?

According to the 2025 Americas Best Value Inn Franchise Disclosure Document, during the renewal of the franchise agreement, Americas Best Value Inn reserves the right to require both the franchisee and their owners to execute and deliver a general release. This release must be in a form that is satisfactory to Americas Best Value Inn, and it covers any and all claims against Americas Best Value Inn and its owners, officers, directors, employees, agents, successors, and assigns.

This requirement means that as a condition of renewing their franchise agreement, Americas Best Value Inn franchisees and their owners must waive any existing or potential legal claims they may have against the franchisor. This is a significant point for prospective franchisees to consider, as it could limit their legal recourse against Americas Best Value Inn in the future. The release aims to protect Americas Best Value Inn from potential liabilities and legal disputes that may arise from the franchise relationship.

It is important for potential Americas Best Value Inn franchisees to carefully review and understand the terms of the release, and to seek legal counsel if necessary, before signing the franchise agreement. Franchisees should be aware of the implications of waiving their rights to make claims against the franchisor, especially concerning issues that may arise during the operation of the hotel or the enforcement of the franchise agreement. This requirement is not uncommon in the franchise industry, as franchisors often seek to protect themselves from potential legal liabilities. However, the specific terms and scope of the release can vary, so it is crucial for franchisees to understand what they are agreeing to.

Furthermore, the FDD includes specific stipulations for franchisees located in California and Maryland regarding the release. For instance, in California, the franchisee parties waive rights under Section 1542 of the California Civil Code, acknowledging they may be giving up claims they are unaware of. In Maryland, any general release will not apply to any liability under the Maryland Franchise Registration and Disclosure Law. These state-specific clauses highlight the importance of understanding how local laws may affect the terms of the franchise agreement and any required releases.