What payments must be current before operating an Americas Best Value Inn?
Americas_Best_Value_Inn Franchise · 2025 FDDAnswer from 2025 FDD Document
ome of or all our securities; merge, acquire other corporations or entities, or be acquired by another corporation or entity; and/or undertake a refinancing, recapitalization, leveraged buyout or other economic or financial restructuring; and (5) engage in all other activities not expressly prohibited by this Agreement.
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- Fees. All fees payable to us under this Agreement are fully earned by us upon payment and are nonrefundable, except as otherwise expressly provided in this Agreement. You will pay us the following fees:
- (a) Initial Fee. You must pay us at the time of your execution of this Agreement a non-refundable initial fee equal to the sum of (x) $17,500, plus (y) the product of $150 times the number of Guest Rooms (defined in Section 4.(e)) in excess of 50 (the "Initial Fee"). The Initial Fee must be made to us by cashier's check, bank certified check, wire transfe
Source: Item 23 — RECEIPTS (FDD pages 71–223)
What This Means (2025 FDD)
According to the 2025 Americas Best Value Inn Franchise Disclosure Document, all fees payable to the company are fully earned upon payment and are nonrefundable, unless expressly provided otherwise in the agreement. This means that once a franchisee pays a fee, Americas Best Value Inn is entitled to keep it, and the franchisee generally cannot get a refund.
Specifically, franchisees must pay an initial fee at the time of executing the franchise agreement. This initial fee is non-refundable and consists of $17,500, plus an additional charge of $150 for each guest room exceeding 50. The initial fee must be paid via cashier's check, bank certified check, wire transfer, ACH, or credit card.
Additionally, franchisees may incur Property Improvement Plan (PIP) fees related to quality assurance inspections of their hotel. These fees, which can be up to $5,000 as of the effective date of the agreement, cover the cost of the PIP and any reinspection required after a failed initial inspection. Therefore, to remain in good standing and continue operating under the Americas Best Value Inn brand, franchisees must ensure that all such fees are current and paid in a timely manner.