When must the initial fee be paid for an Americas Best Value Inn franchise?
Americas_Best_Value_Inn Franchise · 2025 FDDAnswer from 2025 FDD Document
FEES**
Initial Fee
You must pay us an initial fee equal to the sum of (a) $17,500 plus (b) the product of $150 times the number of Guest Rooms in excess of 50 (the "Initial Fee") when you sign the Franchise Agreement. The Initial Fee is fully earned and non-refundable and must be paid before we will countersign the Franchise Agreement, unless we have agreed to permit you to make installment payments, in which case you will sign a promissory note and make payments as provided under the promissory note. During the 2024 fiscal year, we offered qualified franchisees financing up to $20,000 for the Initial Fee. See Item 10 for additional details relating to initial fee installment payments.
Source: Item 5 — INITIAL FEES (FDD pages 22–24)
What This Means (2025 FDD)
According to the 2025 Americas Best Value Inn Franchise Disclosure Document, the initial fee, which is the sum of $17,500 plus $150 times the number of guest rooms in excess of 50, is due when you sign the Franchise Agreement. This fee must be paid before Americas Best Value Inn will countersign the agreement, unless installment payments are permitted, in which case a promissory note will be signed.
In addition to the initial fee, several other fees are due when signing the Franchise Agreement. A $1,500 fee for the initial brand training is required. There are also other potential fees that may be required when billed, such as up to $10,000 for IT implementation services, $5,000 for photography expenses, up to $10,000 for custom architecture and design review, $5,000 for a construction start date extension, and $2,000 for a lender comfort letter review.
Prospective franchisees should note that these fees are non-refundable. It is important to carefully review the franchise agreement and related documents to understand the full scope of fees and payment terms. Understanding when each fee is due allows potential franchisees to plan their finances accordingly and ensure they have sufficient capital to meet their obligations.