What rights does Americas Best Value Inn grant to the franchisee under the License?
Americas_Best_Value_Inn Franchise · 2025 FDDAnswer from 2025 FDD Document
- (b) Grant of License. We grant you the right, and you undertake the obligation, to operate your Hotel and to use the Marks (defined in Section 11.(a)), Confidential Information (defined in Section 11.(c)), and Brand Standards, as authorized under this Agreement during the Term (the "License"). The Hotel expressly includes only the hotel located at the Premises and you may not transfer the License to another hotel or another location without our prior written permission. The License is non-exclusive, non-transferrable and non-sublicensable. You acknowledge and agree that the License does not extend to any bar, restaurant or other facility located at the Premises, unless separately approved by us in writing. The License granted
to you does not include the right to use "Americas Best Value Inn," "ABVI" or "Americas Best," or any other variation resembling the Brand in your Entity (as defined in Section 15.(c)(i)) name, in an Internet domain name, website, email address, social media account, user name, other online presence or presence on any electronic medium of any kind.
- (c) No Exclusivity; Reservation of Rights. We do not grant any, and you have no, exclusive rights or territorial protection around your Hotel.
Source: Item 23 — RECEIPTS (FDD pages 71–223)
What This Means (2025 FDD)
According to the 2025 Americas Best Value Inn FDD, the License grants the franchisee the right and obligation to operate their hotel under the Americas Best Value Inn brand, using the brand's marks, confidential information, and brand standards. This authorization is valid only for the specific hotel premises and during the term of the agreement. The franchisee cannot transfer the license to another hotel or location without prior written permission from Americas Best Value Inn.
It is important to note that the license is non-exclusive, non-transferable, and non-sublicensable, meaning Americas Best Value Inn can grant similar licenses to others, and the franchisee cannot transfer or sublicense their rights. The license does not automatically extend to any bar, restaurant, or other facility located at the premises unless Americas Best Value Inn provides separate written approval. Furthermore, the franchisee is restricted from using "Americas Best Value Inn," "ABVI," or "Americas Best," or any similar variation of the brand name in their entity name, internet domain name, website, email address, social media account, or any other online presence without explicit permission.
Americas Best Value Inn does not grant any exclusive rights or territorial protection around the franchisee's hotel. This means that Americas Best Value Inn retains the right to engage in activities that have not been expressly granted to the franchisee, including establishing and operating other Brand Hotels at any location and under terms they deem appropriate, even if such activities compete with the franchisee's hotel. This reservation of rights extends to various business activities, such as affiliations with other franchise networks and the sale or transfer of ownership interests.