Can Americas Best Value Inn perform audits remotely or electronically?
Americas_Best_Value_Inn Franchise · 2025 FDDAnswer from 2025 FDD Document
- (b) Our Right to Audit. We and our designated agents or representatives may at any time during your business hours, and without prior notice to you, examine your Hotel, bookkeeping, and accounting records for your Hotel, and sales and income tax records and returns, and other records.
At our election, such audit may be performed remotely or electronically without your knowledge.
You agree to, and your staff must, cooperate fully with our representatives and independent accountants in any examination.
If any examination discloses an understatement of the Gross Rooms Revenue, you agree to pay us, within 15 days after receiving the examination report, the Royalty and Brand Promotion Fee due on the amount of the understatement, plus our service charges and interest on the understated amounts from the date originally due until the date of payment.
Furthermore, if an examination is necessary due to your failure to furnish reports, supporting records, or other information as required, or failure to furnish these items on a timely basis, or if our examination reveals a Royalty or Brand Promotion Fee understatement exceeding two percent (2%) of the amount that you actually reported to us for the period examined, you agree to reimburse us for the costs of the examination, including the charges of attorneys and independent accountants and the travel expenses, room and board, and compensation of our employees.
You will not be required to provide more than two (2) nights' accommodations at your Hotel, free of charge, to our representatives in connection with an audit.
These remedies are in addition to our other remedies and rights under this Agreement and applicable law.
Source: Item 23 — RECEIPTS (FDD pages 71–223)
What This Means (2025 FDD)
According to the 2025 Americas Best Value Inn Franchise Disclosure Document, Americas Best Value Inn has the right to audit a franchisee's records. Specifically, Americas Best Value Inn and its agents can examine the hotel's bookkeeping, accounting records, sales, and income tax records.
Importantly, Americas Best Value Inn can elect to perform these audits remotely or electronically without the franchisee's prior knowledge. The franchisee and their staff must fully cooperate with Americas Best Value Inn's representatives and independent accountants during any examination.
If an audit reveals an understatement of Gross Rooms Revenue, the franchisee must pay the Royalty and Brand Promotion Fee due on the understated amount, plus service charges and interest, within 15 days of receiving the examination report. Furthermore, if the understatement exceeds two percent (2%) of the reported amount, or if the audit was necessary due to the franchisee's failure to provide required information, the franchisee must reimburse Americas Best Value Inn for the costs of the examination, including attorney and accountant fees, travel expenses, and compensation for employees. The franchisee is only required to provide a maximum of two nights of free accommodations at their hotel to Americas Best Value Inn's representatives in connection with an audit.