Does Americas Best Value Inn require franchisees to carry cyber liability insurance?
Americas_Best_Value_Inn Franchise · 2025 FDDAnswer from 2025 FDD Document
les that are in your care, custody, and control at any one time.
Additionally, we strongly recommend that you carry employment practices liability insurance, cyber liability insurance, and crime insurance that covers employee dishonesty.
Each of the insurance policies must: (i) be written by an insurance company with an A.M. Best rating of "A" or better; (ii) to the extent legally permissible, name us, our affiliates, and our and their respective officers, directors and employees as additional named insureds and loss payees for all liability coverage policies; (iii) provide that the coverages will be primary and that any insurance carried by us will be excess and non‐contributory; and (iv) provide that all coverages afforded to us (and our affiliates) will be coextensive with the coverage provided to you or any named insured on such policy, and any language in such policy that purports to limit the coverage available to us (and our affiliates) will be deemed deleted as to us (and our affiliates). We periodically may change the amounts of coverage required under the insurance policies and require different or additional kinds of insurance, including excess liability insurance. All insurance may be effected under policies of blanket insurance which cover your other properties and affiliates so long as such blanket insurance satisfies our requirements, as they periodically are modified. Within 10 days of the date you sign the Franchise Agreement, you must provide us certificates of insurance showing compliance with the insurance requirements; the certificate of insurance must include a statement that the policies will not be canceled without at least 30 days' prior written notice to us. Upon our request, you must supply us with copies of all insurance policies and proof of payment. You also must deliver renewal certificates to us not less than 10 days prior to each insurance policy's renewal date.
General
In the year ended December 31, 2024, RLHC received $66,472 and SRLHF received $41,198 from vendors based on purchases by all Network Hotels (including our franchisees, licensees, and owned and managed Network Hotels).
During the fiscal year ended December 31, 2024, SRLHF derived $12,613,798 (or 27% of SRLHF's revenue of $47,107,963), from purchases of goods and services by franchisees and licensees of all Network Brands.
We estimate that 15% to 20% of the products, services, supplies, furniture, fixtures, equipment and inventory used to establish a new ABVI Hotel, 5% to 10% used to convert an existing hotel into an ABVI Hotel, and 15% to 20% used to operate an ABVI Hotel are subject to our specifications.
During the term of the Franchise Agreement and any term extensions, we may require you to make additional expenditures and investments to maintain your Hotel in accordance with the Brand Standards and to remove any deficiencies in your Hotel's operations.
FRANCHISEE'S OBLIGATIONS
This table lists your principal obligations under the Franchise Agreement and other agreements. It will help you find more detailed information about your obligations in these agreements and in other items of this disclosure document.
| Obligation | Section in Franchise Agreement | Disclosure Document Item |
|---|---|---|
| a. Site selection and | Not applicable | Not applicable |
| acquisition/lease | ||
| b. Pre-opening purchases/leases | Section 8.(e) | Items 7, 8 and 11 |
| c. Site development and other | Sections 8.(a) and 8.(b) | Items 7, 8 and 11 |
| pre-opening requirements | ||
| d. Initial and ongoing training | Sections 6.(b) and 6.(d) | Items 1, 6 and 11 |
| e. Opening | Sections 8.(b) | Item 11 |
| f. Fees | Sections 4, 5.(b), 5.(c), 5.(d), 5.(f), 8.(d), 8.(e), 8.(g), 8.(i), 8.(j), 8.(k), 12.(b)(iv)(F), 13.(a), 14.(b), Schedule 8.(i), Exhibit C- 1, and Exhibit C-2 | Items 5, 6, and 7 |
| g. Compliance with standards and | Sections 6.(c), 8, 11, 16.(b) and 16.(e) | Items 8 and 11 |
| policies/operating manual | ||
| h. Trademarks and proprietary | Section 11 | Items 13 and 14 |
| information | ||
| i. Restrictions on | Section 6.(g) | Item 16 |
| products/services offered | ||
| j. |
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 38–41)
What This Means (2025 FDD)
According to the 2025 Americas Best Value Inn Franchise Disclosure Document, franchisees are not explicitly required to carry cyber liability insurance. However, Americas Best Value Inn strongly recommends that franchisees carry cyber liability insurance, as well as employment practices liability insurance and crime insurance that covers employee dishonesty.
Americas Best Value Inn specifies several minimum insurance requirements. These include commercial general liability insurance with limits of not less than $1,000,000 per occurrence and a general aggregate limit not less than $3,000,000. Franchisees must also maintain property/all risk and contents insurance for at least 90% of the replacement cost, business interruption insurance covering at least 12 months of lost profits, and worker's compensation insurance. If applicable, franchisees must also carry liquor liability insurance with limits of not less than $1,000,000 per occurrence and automobile liability insurance with combined single limits of not less than $1,000,000 per occurrence.
All insurance policies must be written by a company with an A.M. Best rating of "A" or better. Additionally, Americas Best Value Inn, its affiliates, and their respective officers, directors, and employees must be named as additional insureds and loss payees. The franchisee's coverage must be primary, and Americas Best Value Inn's coverage will be excess and non-contributory. Franchisees must provide certificates of insurance within 10 days of signing the Franchise Agreement and renewal certificates no less than 10 days before each policy's renewal date.
Americas Best Value Inn retains the right to modify the required coverage amounts and types of insurance periodically, including potentially requiring excess liability insurance. Franchisees need to stay informed of any changes to these requirements to ensure they remain compliant with the franchise agreement.