Where is the Opening Date for an Americas Best Value Inn set forth?
Americas_Best_Value_Inn Franchise · 2025 FDDAnswer from 2025 FDD Document
and travel distribution outlets;
- (vii) the Initial Fee has been paid in full and you pay other amounts then due to us and our affiliates;
- (viii) you provide us with all requested documentation, including but not limited to certificates for all required insurance policies; and
- (ix) you satisfy any other conditions that we reasonably impose.
You agree to open your Hotel for business by the date set forth on Exhibit A (the "Opening Date"), unless we otherwise agree in writing. If you are acquiring an existing Brand Hotel, the Opening Date will be the date you close on the acquisition of the existing Brand Hotel.
Opening your Hotel under the Marks before we authorize you to open will constitute unauthorized use of the Marks and a material breach of this Agreement. Recognizing the difficulty of ascertaining damages for such a breac
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 opening date for an Americas Best Value Inn hotel is established in Exhibit A of the franchise agreement. The franchisee agrees to open their hotel for business by the date specified in Exhibit A, which is referred to as the "Opening Date."
According to the FDD, if the franchisee is acquiring an existing Americas Best Value Inn hotel, the opening date will be the date the acquisition is completed. The document also stipulates that opening the hotel under the brand's marks before receiving authorization from Americas Best Value Inn constitutes unauthorized use of the marks and a material breach of the agreement. In such cases, the franchisee agrees to pay $5,000 per day as liquidated damages to compensate for the damage to the marks, and this is not considered a penalty.
This arrangement is fairly standard in franchising, as the opening date is a critical milestone that triggers various obligations and timelines for both the franchisor and franchisee. The liquidated damages clause is designed to protect the brand's reputation and ensure compliance with the franchise agreement. Prospective franchisees should carefully review Exhibit A and understand all conditions related to the opening date to avoid potential penalties or breaches of contract.