What statement must be included on the certificate of insurance provided by an Americas Best Value Inn franchisee?
Americas_Best_Value_Inn Franchise · 2025 FDDAnswer from 2025 FDD Document
- (c) Evidence of Insurance. Within 10 days of the Effective Date, and in any event, prior to opening your Hotel as a Brand Hotel, 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.
Source: Item 23 — RECEIPTS (FDD pages 71–223)
What This Means (2025 FDD)
According to the 2025 Americas Best Value Inn Franchise Disclosure Document, a franchisee must provide certificates of insurance to Americas Best Value Inn within 10 days of the effective date of the franchise agreement, and before opening their hotel as a branded hotel. These certificates serve as proof that the franchisee is compliant with the insurance requirements set forth by Americas Best Value Inn.
The certificate of insurance must include a statement confirming that the insurance policies will not be canceled without at least 30 days' prior written notice to Americas Best Value Inn. This requirement ensures that Americas Best Value Inn is informed of any potential lapse in coverage, allowing them time to take necessary actions to protect their interests. Americas Best Value Inn also has the right to request copies of all insurance policies and proof of payment from the franchisee.
If a franchisee fails to maintain the required insurance, Americas Best Value Inn has the right, but not the duty, to procure insurance on behalf of the franchisee. The franchisee will be charged for the cost of this insurance, along with a fee for Americas Best Value Inn's expenses. As of the effective date, this fee is $500 per month. However, Americas Best Value Inn is not liable if the amount of insurance they procure is insufficient to cover the franchisee's risks, and the franchisee remains responsible for fulfilling their indemnity obligations under the franchise agreement.