What monetary obligations must be satisfied before an Americas Best Value Inn franchisee can transfer the franchise?
Americas_Best_Value_Inn Franchise · 2025 FDDAnswer from 2025 FDD Document
| As Reported | Adjustments | As Restated | |
|---|---|---|---|
| Cash flows from operating activities: | |||
| Other long term assets | $ 158 | $ (9,598) | $ ( 9,440) |
| Net cash provided by (used in) operating activities | (1,328) | (9,598) | ( 10,926) |
| Cash flows from investing activities: | |||
| Key money disbursements | $ (9,598) | $ 9,598 | $ - |
| Cash transfers from |
Source: Item 23 — RECEIPTS (FDD pages 71–223)
What This Means (2025 FDD)
According to the 2025 Americas Best Value Inn Franchise Disclosure Document, before a franchise can be transferred, the assignor must pay all outstanding amounts owed to Americas Best Value Inn through the closing date. This includes any past due amounts related to items that would be specified in the franchise agreement.
In addition to settling outstanding debts, the franchisee or the transferee is required to pay a transfer fee. This fee is equivalent to the initial franchise fee that was outlined in Section 4(a) of the franchise agreement.
These financial obligations are standard in franchising. Franchisors want to ensure all debts are settled and to collect a fee upon the transfer of ownership. A prospective franchisee should clarify the current initial franchise fee with Americas Best Value Inn to understand the potential transfer fee amount.