America's Best and Budgetel Sign Licensing Agreement

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. November 14, 2008

NPVEMBER 13, 2008. A multi-year licensing agreement has been signed between the Budgetel Franchise System and Atlanta-based America's Best Franchising Incorporated, which operates more than 200 hotel properties under two upper economy brands - Country Hearth Inns & Suites and America's Best Inn & Suites - as well as under the upscale "3 Palms" brand.

The licensing agreement - which consists of an initial five-year term, followed by three additional periods of five years each - calls for America's Best Franchising to be the sole world-wide franchiser and management firm for the Budgetel brand, effective November 30, 2008.

"America's Best Franchising has considerable staff, experience, and infrastructure which will be immediately available and of great benefit to Budgetel's existing and potential franchisees," said Mukesh "Mike" Patel, chairman of the Budgetel Franchise System, which retains ownership of the Budgetel trademark and whose board voted unanimously in favor of the licensing deal.

"With one giant leap, this agreement moves Budgetel to its next strategic level of development and ensures solid, long-term growth for the brand - which is especially valuable in our current economic environment."

According to Doug Collins, chairman and CEO of America's Best Franchising, "The Budgetel brand is a great name and a valuable accommodations option for both franchisees and the traveling public. We look forward to growing the brand significantly in the United States and around the world."

The Budgetel brand, which was first introduced in 1974, has been under new ownership since March of 2007 with an operating philosophy based on the "12 points of fair franchising," which gives franchisees unprecedented control of their profitability.

"During the past 18 months, the Budgetel brand has been rolled out in a selective, quality manner with five properties now either open or with signed agreements in place for openings within the next 90 days," added Collins. "We expect to build on this momentum with our existing sales and support staff plus with our wide range of proven marketing and administrative services."

Since 1993, America's Best Franchising has developed a solid network in the United States of properties under the "Country Hearth" and "America's Best" brands. Earlier this year, the company launched its upscale "3 Palms" brand for independent and condo hotels.

America's Best Franchising has also initiated an aggressive expansion into target international markets, notably Africa and Asia. The company already operates properties in Canada and South America, plus it currently has two America's Best brand properties under construction through its master licensee in Nigeria and four Country Hearth properties under construction through its master licensee in India.

"Our international growth and capability is significant because we're confident that major opportunities exist for growth of the Budgetel brand in selected markets around the world," said Collins. "We're energized about creating a new dimension of progress for Budgetel."