Is the Americas Best Value Inn License exclusive?
Americas_Best_Value_Inn Franchise · 2025 FDDAnswer from 2025 FDD Document
and our affiliates own a special system related to the operations, marketing, and distribution of information pertaining to hotels under the Brand ("Brand Hotels"). Owners of Brand Hotels are known as "Brand Franchisees." Subject to the terms and conditions contained in this Agreement, you are a Brand Franchisee.
- (b) Grant of License. We grant you the right, and you undertake the obligation, to operate your Hotel and to use the Marks (defined in Section 11.(a)), Confidential Information (defined in Section 11.(c)), and Brand Standards, as authorized under this Agreement during the Term (the "License"). The Hotel expressly includes only the hotel located at the Premises and you may not transfer the License to another hotel or another location without our prior written permission. The License is non-exclusive, non-transferrable and non-sublicensable. You acknowledge and agree that the License does not extend to any bar, restaurant or other facility located at the Premises, unless separately approved by us in writing.
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 license granted to a franchisee is non-exclusive. Specifically, Americas Best Value Inn does not grant any exclusive rights or territorial protection around a franchisee's hotel. This means that Americas Best Value Inn retains the right to establish and operate, or allow others to operate, Americas Best Value Inn hotels at any location, including locations that may compete with an existing franchisee's hotel.
Americas Best Value Inn also reserves the right to operate and license other hotel brands under the 'Network Marks' which offer similar products and services as Americas Best Value Inn hotels. These Network Marks include brands such as Sonesta, Red Lion Hotel, and Knights Inn. This broad reservation of rights allows Americas Best Value Inn to expand its presence through various brands and channels without restriction, potentially impacting the market share of individual franchisees.
For a prospective franchisee, this non-exclusivity represents a significant risk. Americas Best Value Inn franchisees should be aware that the franchisor can establish competing locations or brands nearby, which could dilute their customer base and revenue. It is important for potential franchisees to carefully consider the market dynamics and competitive landscape in their desired location, understanding that Americas Best Value Inn does not offer any territorial protection.