To whom is the initial franchise fee paid for an Americas Best Value Inn franchise?
Americas_Best_Value_Inn Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type Of Expenditure | Amount Conversion | New Construction | Method Of Payment | When Due | To Whom Payment Is To Be Made |
|---|---|---|---|---|---|
| Initial Fee (Note 2) | $17,500 | $17,500 | Lump Sum | Upon your signing of the Franchise Agreement | Us |
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 32–38)
What This Means (2025 FDD)
According to the 2025 Americas Best Value Inn Franchise Disclosure Document, the initial franchise fee is paid directly to "Us", which refers to the franchisor. The initial fee is a lump sum payment of $17,500 due upon signing the Franchise Agreement.
In addition to the initial franchise fee, there are other fees payable to Americas Best Value Inn, including an onboarding fee of $1,000, an initial brand training fee ranging from $1,500 to $4,000, a PIP fee ranging from $0 to $5,000, IT implementation services ranging from $0 to $10,000, a CRS to PMS interface and tokenization set up fee ranging from $650 to $1,745, an RMS installation fee of $400, photography expenses ranging from $1,000 to $5,000, a PIP reinspection fee ranging from $0 to $5,000, custom architecture & design review ranging from $0 to $10,000, a lender comfort letter fee of $2,000, and a construction start date extension fee ranging from $0 to $5,000.
Prospective franchisees should note that these fees are generally non-refundable, as stated in Note 1: "None of the fees payable to us are refundable." This means that once the Franchise Agreement is signed and the initial fee is paid, the franchisee will not receive a refund, even if they do not proceed with opening the Americas Best Value Inn. Therefore, it is crucial for potential franchisees to conduct thorough due diligence and carefully consider their decision before signing the agreement and paying the initial fee.