Are there any third-party beneficiaries to the Americas Best Value Inn franchise agreement?
Americas_Best_Value_Inn Franchise · 2025 FDDAnswer from 2025 FDD Document
- (n) Third Parties; Limited Power of Attorney. The terms of this Agreement control the relationship between you and us.
Except as provided in this Agreement, they do not create any third-party beneficiary rights.
Notwithstanding anything to the contrary contained in this Agreement, the parties agree that each of their respective owners, officers, directors, employees, agents, attorneys and other representatives are
third-party beneficiaries of the provisions of Section 16.(a), 16.(g), 16.(h), 16.(i), 16.(j) and 16.(k). You hereby irrevocably designate and appoint us and our duly authorized officers and agents as your agent and attorney-in-fact to effectuate any Brand Franchisee-approved initiatives (for example, merchant programs).
(o) Management of Your Hotel. Your Hotel must be managed by a general manager on a full-time basis, whether employed by you or the Management Company (defined below). You may engage a management company selected by you and approved by us (the "Management Company"). Any lease, management agreement, or other arrangement for operating your Hotel or any part thereof shall be subject to our prior written consent, which may be withheld in our sole discretion. If your Hotel will be managed by a Management Company, the Management Company will sign the Management Company Joinder to this Agreement. By doing so, the Management Company agrees that it is bound by all of the terms of this Agreement as if it were you under this Agreement and agrees that it is jointly and severally liable with you for all your obligations under this Agreement, except with respect to the actual payments of any amounts due to any third parties, our affiliates or pursuant to this Agreement. You must obtain our prior written consent to any change of the Management Company or if you wish to engage a Management Company after the Effective Date, which consent may be withheld in our sole discretion, and will be subject to the proposed Management Company demonstrating the capability to manage your Hotel pursuant to this Agreement and the Brand Standards. In the event we approve a change in the Management Company, the new Management Company must execute the Management Company Joinder to 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, the franchise agreement generally controls the relationship between the franchisee and Americas Best Value Inn, and it does not create third-party beneficiary rights except as explicitly provided in the agreement.
However, the document specifies that the owners, officers, directors, employees, agents, attorneys, and other representatives of both the franchisee and Americas Best Value Inn are considered third-party beneficiaries of certain sections within the agreement, specifically Sections 16.(a), 16.(g), 16.(h), 16.(i), 16.(j) and 16.(k).
Additionally, if a Management Company is engaged to manage the hotel, that Management Company must sign a Management Company Joinder, which binds them to the terms of the agreement as if they were the franchisee. The Management Company is then jointly and severally liable with the franchisee for all obligations under the agreement, except for the actual payments of any amounts due to any third parties, Americas Best Value Inn's affiliates, or pursuant to the agreement.