Does Americas Best Value Inn have the right to establish and operate Brand Hotels at any location?
Americas_Best_Value_Inn Franchise · 2025 FDDAnswer from 2025 FDD Document
- (c) No Exclusivity; Reservation of Rights. We do not grant any, and you have no, exclusive rights or territorial protection around your Hotel.
We (and our affiliates) retain the right at all times during and after the Term to engage in any and all activities that we (and they) deem appropriate and that have not been expressly granted to you in this Agreement, wherever and whenever we (and they) desire, and whether or not such activities compete with your Hotel, including the right, anywhere in the world, to do any of the following: (1) establish and operate, and allow others to establish and operate Brand Hotels at any location on such terms and conditions we deem appropriate; (2) establish, operate, and license others to establish and operate, anywhere in the world (other than the Premises), any hotel operating under any of the Network Marks (as defined in Section 6.(e)) and other businesses that offer products and services which are identical or similar to the products and services offered by Brand Hotels under any trade names, trademarks, service marks and commercial symbols; (3) purchase, merge, acquire, be acquired or affiliate with one or more existing franchise networks, chains or any other businesses, regardless of the location of such chains' or businesses' facilities, and to operate, franchise or license those businesses under the Marks (as defined in Section 11(a)) or any other marks following the purchase, merger, acquisition or affiliation, regardless of the location of those businesses (or the franchisees or licensees of those businesses); (4) sell our ownership interests, our assets, the Marks and/or the Brand to a third party; become publicly traded; engage in a private placement of some of or all our securities; merge, acquire other corporations or entities, or be acquired by another corporation or entity; and/or undertake a refinancing, recapitalization, leveraged buyout or other economic or financial restructuring; and (5) engage in all other activities not expressly prohibited by this Agreement.
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 retains the right to establish and operate Brand Hotels at any location. Specifically, Americas Best Value Inn and its affiliates can engage in activities not expressly granted to the franchisee, including establishing and operating Brand Hotels under terms they deem appropriate.
This means that as an Americas Best Value Inn franchisee, you will not receive exclusive rights or territorial protection around your hotel. Americas Best Value Inn reserves the right to establish other Brand Hotels, or hotels operating under any of their Network Marks, anywhere in the world, regardless of whether these activities compete with your hotel. The Network Marks include brands that Americas Best Value Inn or its affiliates own, license, create, or acquire.
Americas Best Value Inn also has the right to purchase, merge, acquire, or affiliate with other franchise networks or businesses, and to operate or franchise those businesses under the Marks. They can also sell their ownership interests, assets, or the Brand to a third party, become publicly traded, or engage in various financial restructurings. These rights are retained both during and after the term of the franchise agreement.