To whom are the payments for permits, licenses, and plans made for an Americas Best Value Inn franchise?
Americas_Best_Value_Inn Franchise · 2025 FDDAnswer from 2025 FDD Document
TIMATED INITIAL INVESTMENT
| Type Of Expenditure | Amount Conversion | New Construction | Method Of Payment | When Due | To Whom Payment Is To Be Made |
|---|---|---|---|---|---|
| Initial Fee (Note 2) | $17,500 | $17,500 | Lump Sum | Upon your signing of the Franchise Agreement | Us |
| Onboarding | $1,0 |
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 32–38)
What This Means (2025 FDD)
According to the 2025 Franchise Disclosure Document, when establishing an Americas Best Value Inn franchise, payments for permits, licenses, and plans are made to suppliers and governmental authorities. These costs are variable, especially for conversion projects, but for new construction, they range from $139,725 to $300,150. These expenses are due before opening the franchise.
The FDD notes that these amounts include the cost of architects and engineers and construction plans, as well as local fees (including building permits, licenses and environmental impact fees), which vary widely depending on your specific location and situation, as well as the design selected by you, and may be significantly greater than shown in this table. It is important for prospective franchisees to consult with their attorney to determine any applicable licensing or permit fees required to operate their hotel.
Given the variability in costs, prospective Americas Best Value Inn franchisees should conduct thorough due diligence. This includes obtaining detailed quotes from multiple suppliers and understanding the specific requirements and fees imposed by local governmental authorities. Consulting with experienced professionals, such as attorneys and contractors familiar with local regulations, is crucial for accurately estimating these costs and avoiding unexpected expenses during the initial setup phase.