What are the licensees of membership agreements with Americas Best Value Inn referred to in the disclosure document?
Americas_Best_Value_Inn Franchise · 2025 FDDAnswer from 2025 FDD Document
Prior to our acquisition of the ABVI brand, there were 859 lodging facilities operating in the United States that became affiliated with the ABVI brand through VHGI's membership model, which it offered before VFI, its subsidiary, began offering franchises for hotels under the Marks (defined in Item 13). In September 2016 as part of the acquisition, we assumed the membership agreements for, and began acting as licensor and providing service to, those lodging facilities. The licensees of those membership agreements are known as "Brand Members" throughout this disclosure document.
Source: Item 1 — **THE FRANCHISOR AND ANY PARENTS, PREDECESSORS, AND AFFILIATES (FDD pages 7–15)
What This Means (2025 FDD)
According to the 2025 Americas Best Value Inn FDD, the licensees of membership agreements are referred to as "Brand Members" throughout the disclosure document. These membership agreements predate the current franchise model.
Prior to Sonesta RL Hotels Franchising Inc.'s acquisition of the Americas Best Value Inn brand, 859 lodging facilities were affiliated through VHGI's membership model. In September 2016, as part of the acquisition, Sonesta RL Hotels Franchising Inc. assumed these membership agreements, becoming the licensor and service provider for these facilities.
It is important for prospective franchisees to understand the distinction between franchisees and Brand Members, as their agreements and relationships with Americas Best Value Inn may differ. Franchisees operate under a franchise agreement, while Brand Members operate under pre-existing membership agreements assumed by the franchisor.