Which obligations of the Americas Best Value Inn franchisee survive the termination of the franchise agreement?
Americas_Best_Value_Inn Franchise · 2025 FDDAnswer from 2025 FDD Document
All our and your respective obligations that expressly or by their nature survive the expiration or sooner termination of
this Agreement continue in full force and effect subsequent to and notwithstanding its expiration or termination.
- (d) No Disparagement. Both during and after the Term, you and your owners agree not to: (i) subject us or our affiliates or any of our or their respective officers, directors, stockholders, employees, or representatives, any other Brand Hotels or their owners or franchisees of the Network Hotels, any aspect of the Brand or the Network Marks, or any other of our brand concepts or those of our affiliates, to ridicule, scandal, reproach, scorn, or indignity, (ii) disparage or negatively impact the goodwill of the Brand or the Network Marks, or (iii) take any action that would constitute an act of moral turpitude.
Schedule 14
Your Obligations Upon Termination or Expiration of the Franchise Agreement
In addition to your payment obligations under Section 14 of the Agreement, upon the expiration or sooner termination of the Agreement you will also comply with the following obligations:
- (a) Cease Operations. You will immediately cease operating the Hotel under the Brand.
You will not, directly or indirectly: (a) use any of the Marks or Confidential Information; (b) represent yourself as a present or former Brand Franchisee; or (c) in any other way affiliate or associate yourself with the Brand.
You will immediately cease all use of the Marks and will de-identify the Premises, including as required by paragraph b. of this Schedule 14, the Brand Manual and as we otherwise designate in writing.
You will immediately cease using or operating any Online Presence related to the Hotel or the Network Marks, and take any action as may be required to disable such Online Presence, or transfer exclusive control and access of such Online Presence to us, as we determine at our sole discretion.
You hereby appoint us as your true and lawful attorney-in-fact to take such actions and execute such documents on your behalf as may be required to effect the foregoing purposes.
You will comply with all other Brand Standards we periodically establish (and all applicable laws) in connection with the de-identification of the Hotel, including as relates to disposing of Personal Information, in any form, in your possession or the possession of your employees.
Notwithstanding the foregoing, you will honor any advance reservations, including group bookings, made prior to the termination date at the rates and on the terms established when the reservations were made and pay when due all related commissions, booking fees, and other charges associated therewith.
Source: Item 23 — RECEIPTS (FDD pages 71–223)
What This Means (2025 FDD)
According to the 2025 Americas Best Value Inn Franchise Disclosure Document, several obligations of the franchisee survive the termination or expiration of the franchise agreement. These include ceasing operations as an Americas Best Value Inn, discontinuing the use of any trademarks or confidential information associated with the brand, and refraining from representing oneself as a current or former franchisee. Franchisees must also de-identify the premises to remove any association with the Americas Best Value Inn brand, as specified in the Brand Manual or as otherwise directed by the franchisor. This includes ceasing the operation of any online presence related to the hotel or network marks and taking action to disable or transfer control of such online presence to the franchisor.
Moreover, franchisees are obligated to honor advance reservations made before the termination date, including group bookings, at the rates and terms established when the reservations were made. They must also pay all related commissions, booking fees, and other associated charges. The franchise agreement specifies that all obligations that expressly or by their nature survive the expiration or termination of the agreement will continue in full force and effect. This includes a clause preventing disparagement of the Americas Best Value Inn brand, its affiliates, officers, directors, employees, representatives, other Brand Hotels, owners, or franchisees.
These post-termination obligations are typical in franchising to protect the brand's integrity and goodwill. Franchisees should carefully review these clauses to understand their responsibilities after the franchise agreement ends, as failure to comply can result in legal action. The franchisor's right to enforce these provisions ensures consistency and prevents former franchisees from leveraging the brand's reputation for their own benefit after the agreement concludes. Prospective franchisees should seek legal counsel to fully understand the implications of these surviving obligations.