What is the 'PIP' in the context of an Americas Best Value Inn franchise conversion?

According to the 2025 Americas Best Value Inn Franchise Disclosure Document, the 'PIP' refers to the Property Improvement Plan. Specifically, when converting an existing hotel to an Americas Best Value Inn, the franchisee, along with their Principal and Management Company (if applicable), will meet with the franchisor to conduct an initial inspection of the premises. This inspection leads to the development of the PIP, which outlines the improvements required to meet the brand's standards. The PIP is formally attached as Exhibit D-1(A) to the Franchise Agreement and is legally incorporated by reference.

The franchisee is responsible for completing all renovation and construction work detailed in the PIP by the Renovation Work Completion Date. This includes obtaining necessary permits, constructing improvements according to the PIP and approved plans, and decorating the hotel to meet brand specifications. Franchisees may be required to use vendors selected by the franchisor for design, engineering, construction management, and purchasing services related to the conversion.

Furthermore, the franchisee must submit plans and designs for the hotel, including furnishings, fixtures, equipment, and décor, for approval by Americas Best Value Inn. While the franchisor may provide prototype plans as a guide, their approval does not warrant the efficacy of the plans or the resulting renovation work. The franchisee is responsible for ensuring the renovations comply with brand standards and the PIP. Failure to complete the renovation work by the specified date constitutes a default under the Franchise Agreement, and the hotel cannot open under the Americas Best Value Inn brand until the franchisor confirms the work is completed in compliance with the PIP.