Can Americas Best Value Inn license others to operate hotels under any brand other than Americas Best Value Inn?
Americas_Best_Value_Inn Franchise · 2025 FDDAnswer from 2025 FDD Document
on 15.(c)(i)) name, in an Internet domain name, website, email address, social media account, user name, other online presence or presence on any electronic medium of any kind.
- (c) No Exclusivity; Reservation of Rights. We do not grant any, and you have no, exclusive rights or territorial protection around your Hotel. We (and our affiliates) retain the right at all times during and after the Term to engage in any and all activities that we (and they) deem appropriate and that have not been expressly granted to you in this Agreement, wherever and whenever we (and they) desire, and whether or not such activities compete with your Hotel, including the right, anywhere in the world, to do any of the following: (1) establish and operate, and allow others to establish and operate Brand Hotels at any location on such terms and conditions we deem appropriate; (2) establish, operate, and license others to establish and operate, anywhere in the world (other than the Premises), any hotel operating under any of the Network Marks (as defined in Section 6.(e)) and other businesses that offer products and services which are identical or similar to the products and services offered by Brand Hotels under any trade names, trademarks, service marks and commercial symbols; (3) purchase, merge, acquire, be acquired or affiliate with one or more existing franchise networks, chains or any other businesses, regardless of the location of such chains' or businesses' facilities, and to operate, franchise or license those businesses under the Marks (as defined in Section 11(a)) or any other marks following the purchase, merger, acquisition or affiliation, regardless of the location of those businesses (or the franchisees or licensees of those businesses); (4) sell our ownership interests, our assets, the Marks and/or the Brand to a third party; become publicly traded; engage in a private placement of some of or all our securities;
Source: Item 23 — RECEIPTS (FDD pages 71–223)
What This Means (2025 FDD)
According to the 2025 Americas Best Value Inn Franchise Disclosure Document, Americas Best Value Inn and its affiliates retain the right to license others to operate hotels under various brands. Specifically, they can license hotels under any of the "Network Marks," which include brands they currently own, license, create, or acquire.
This means that while a franchisee is granted the right to operate a hotel under the Americas Best Value Inn brand, Americas Best Value Inn reserves the right to expand its network by licensing other hotel brands. These brands could potentially compete with Americas Best Value Inn.
For a prospective franchisee, this indicates that the competitive landscape could change if Americas Best Value Inn introduces or licenses new hotel brands in the same market. It is important for potential franchisees to understand that Americas Best Value Inn has the right to operate and license other brands, and this could impact their business.