Is the PIP Fee charged by Americas Best Value Inn refundable?
Americas_Best_Value_Inn Franchise · 2025 FDDAnswer from 2025 FDD Document
is fee will be due when billed and is non-refundable.
If you are converting an existing hotel into an ABVI Hotel, we may issue you a Property Improvement Plan ("PIP") to which you must agree as a condition of approval that sets forth a list of items you must perform to conform your Hotel to the Brand Standards prior to your Opening Date (or within such timeframe as may be stated in the PIP). If we issue you a PIP, we may require you to pay us a non-refundable fee of up to $5,000, before we approve you as a Franchisee, to cover the cost of preparing or verifying completion of the PIP (the "PIP Fee"). "Opening Date" means the date your Hotel opens for business under the Brand. If we are required to reinspect your Hotel to ensure you have complied with the PIP, you must pay us a PIP reinspection fee of up to $5,000. Thes
Source: Item 5 — INITIAL FEES (FDD pages 22–24)
What This Means (2025 FDD)
According to the 2025 Americas Best Value Inn Franchise Disclosure Document, the Property Improvement Plan (PIP) Fee is non-refundable. If Americas Best Value Inn issues a PIP for a converting hotel, they may require a fee of up to $5,000 to cover the costs of preparing or verifying completion of the PIP. This fee is required before approval as a franchisee.
In the event that a reinspection of the hotel is required to ensure compliance with the PIP, Americas Best Value Inn may charge a reinspection fee of up to $5,000. Both the initial PIP Fee and the reinspection fee are due when billed and are non-refundable.
This means that a prospective Americas Best Value Inn franchisee converting an existing hotel should be prepared to pay up to $5,000 for the initial PIP and another $5,000 for a reinspection, and these fees will not be returned, regardless of whether the franchisee proceeds with the conversion or not. This is a standard practice in the franchise industry, as these fees cover the franchisor's expenses in assessing and ensuring brand standard compliance.