Under what conditions will Americas Best Value Inn authorize a hotel to open?
Americas_Best_Value_Inn Franchise · 2025 FDDAnswer from 2025 FDD Document
You will not open your Hotel unless and until you receive our written authorization to do so.
We will only authorize your Hotel to open when we, at our sole discretion, are satisfied that you have complied with all the terms and conditions set forth in the Franchise Agreement, including but not limited to Section 8.(b), and this Rider.
Opening your Hotel before we authorize you to open will constitute unauthorized use of the Marks and a material breach of the Franchise Agreement.
If you open your Hotel prior to our authorization, you agree to pay to us damages as set forth in Section 8.(b) of the Franchise Agreement.
Source: Item 22 — CONTRACTS (FDD page 71)
What This Means (2025 FDD)
According to the 2025 Americas Best Value Inn Franchise Disclosure Document, Americas Best Value Inn will only authorize a hotel to open once they are satisfied that the franchisee has complied with all the terms and conditions set forth in the Franchise Agreement. This includes, but is not limited to, Section 8.(b) of the agreement and the specific rider attached to the agreement. The authorization to open must be provided in writing by Americas Best Value Inn.
For new construction hotels, franchisees must complete construction of their hotel and open for business within 12 months of breaking ground, but no later than 24 months from the Effective Date of the agreement, unless a different date is specified in Exhibit A. Franchisees must also ensure the construction work is completed according to the Franchise Agreement and Brand Standards. Americas Best Value Inn has the sole right to determine if the construction work meets these requirements.
For franchisees converting an existing hotel into an Americas Best Value Inn, the franchisee will meet with Americas Best Value Inn to conduct an initial inspection of the premises and develop a property improvement plan (PIP) of improvements required to meet Brand Standards. Franchisees must complete the Renovation Work in accordance with the Franchise Agreement, the Brand Standards, and the PIP. Americas Best Value Inn has the sole right to determine whether the Renovation Work has been completed in accordance with the Franchise Agreement, the Brand Standards and the PIP.
Opening a hotel before receiving written authorization from Americas Best Value Inn constitutes unauthorized use of the brand's marks and a material breach of the Franchise Agreement. If a franchisee opens their hotel prior to authorization, they agree to pay damages as outlined in Section 8.(b) of the Franchise Agreement.