What section of the Americas Best Value Inn Franchise Agreement covers choice of law?
Americas_Best_Value_Inn Franchise · 2025 FDDAnswer from 2025 FDD Document
| PROVISION | SECTION IN | SUMMARY | |
|---|---|---|---|
| FRANCHISE AGREEMENT | |||
| o. | Franchisor's option to purchase franchisee's business | None | Not Applicable |
| p. | Death or disability of franchisee | Section 12.(b) | Any transfers occurring upon your death will be considered a "transfer" of your Franchise Agreement and will be subject to the conditions to transfer in section m. |
| q. | Non-competition covenants during the term of the franchise | None | Not Applicable |
| r. | Non-competition covenants after the franchise is terminated or expires | None | Not Applicable |
| s. | Modification of the agreement | Section 11.(c) and 16.(c) | No modifications unless signed by the party against whom enforcement is sought, but we may unilaterally modify our Brand Standards and you will be bound by such modifications. |
| t. | Integration/merger clause | Section 16.(m) | Only the terms of the Franchise Agreement (together with its schedules and exhibits) are binding (subject to state law). Any representations or promises outside of this disclosure document and the Franchise Agreement may not be enforceable. |
| u. | Dispute resolution by arbitration or mediation | Not Applicable | Not Applicable |
| v. | Choice of forum | Section 16.(g) | Litigation must be brought in the federal court nearest to our or, as applicable, our successor's or assign's then current principal place of business (currently, Newton, Massachusetts), subject to state law. If the federal court lacks jurisdiction, then such litigation must be brought in the state court nearest to our or, as applicable, our successor's or assign's then current principal place of business (currently, Newton, Massachusetts), unless otherwise mutually agreed by the parties. However, we may seek injunctive relief in any jurisdiction that has jurisdiction over you. |
| w. | Choice of law | Section 16.(g) | Massachusetts law generally applies, except for issues under the U.S. Trademark Act (subject to applicable state law). |
Source: Item 17 — **RENEWAL, TERMINATION, TRANSFER, AND DISPUTE RESOLUTION (FDD pages 59–63)
What This Means (2025 FDD)
According to the 2025 Americas Best Value Inn Franchise Disclosure Document, the choice of law is addressed in Section 16.(g) of the Franchise Agreement. Generally, Massachusetts law applies to the agreement, except for issues arising under the U.S. Trademark Act, which are subject to applicable state law.
This means that the Americas Best Value Inn Franchise Agreement is typically interpreted and enforced under Massachusetts law. However, if a dispute involves trademark issues, the relevant state law regarding trademarks will take precedence. This is a fairly standard practice in franchising, as franchisors often choose a particular state's law to govern their agreements for consistency, while also acknowledging that certain federal or state laws may override this choice in specific situations.
For a prospective Americas Best Value Inn franchisee, it is important to understand that while Massachusetts law generally applies, they may need to consult with an attorney familiar with both Massachusetts law and federal trademark law to fully understand their rights and obligations under the Franchise Agreement. Franchisees should also be aware of any applicable state laws that may affect the enforcement of certain provisions of the agreement.