What is the 'Opening Date' in relation to the term of the Americas Best Value Inn franchise agreement?
Americas_Best_Value_Inn Franchise · 2025 FDDAnswer from 2025 FDD Document
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- Service Mark Designation. Subject to the license granted in this Agreement, you will operate the Hotel located at the Premises under the Americas Best Value Inn brand (the "Brand") indicated on Exhibit A.
2. Term.
- (a) Initial Term. The term of this Agreement (the "Term") commences on the Effective Date and expires five (5) years from the Opening Date (as defined in Section 8.(b)), subject to earlier termination as set forth in this Agreement.
- (b) Renewal. The Term will be automatically extended for up to three additional five-year terms (and each extension is included in the definition of Term), if:
- (i) neither you nor we have provided at least 90 days prior written notice of an intention not to renew the Term prior to the end of the then-current term;
- (ii) you are not in default of any provision of this Agreement, any other agreement between you and us or our affiliates, or any supplier or vendor;
- (iii) you have completed (at least 60 days before the scheduled expiration of the Term) all maintenance, refurbishing, renovating, and upgrading of the Hotel required to conform the Hotel to (a) the Brand Standards (defined in Section 8.(d)) then in effect for new Brand Franchisees (defined in Section 3.(a)), and (b) any applicable PIP (as defined in Section 4.(b));
- (iv) you are lawfully entitled to continue to use and occupy the Premises for the entire following successor term; and
- (v) you have not received four (4) or more default notices from us during the Term; and
- (vi) you pay to us a renewal fee of $5,000.
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 term of the franchise agreement commences on the Effective Date and extends for five years from the Opening Date, subject to earlier termination as outlined in the agreement. The Opening Date is defined in Section 8.(b) of the agreement. This means the franchisee's operational timeline directly influences the duration of the franchise term.
Americas Best Value Inn offers the possibility of automatically extending the term for up to three additional five-year terms, contingent upon several conditions. These conditions include providing written notice of intent to renew at least 90 days before the current term expires, maintaining compliance with all agreements and standards, completing required renovations, securing lawful rights to occupy the premises, avoiding excessive default notices, and paying a $5,000 renewal fee.
Upon each renewal, Americas Best Value Inn retains the right to require the franchisee to sign the then-current franchise agreement and provide a general release of claims against the franchisor. This clause highlights the importance of ongoing compliance and the potential for evolving terms in subsequent agreements. The initial term's dependence on the 'Opening Date' emphasizes the need for franchisees to commence operations promptly to maximize the term's benefit.