Can Amorino acquire another business entity?
Amorino Franchise · 2025 FDDAnswer from 2025 FDD Document
ing such obligations, and (b) shall expressly assume and agree to perform such obligations from the date of assignment.
- (2) Without limiting our rights as set forth in Section 15.A(1), you expressly affirm and agree that we may now or any time in the future:
- a. sell our assets, the Proprietary Products, our rights to the Proprietary Marks, the Copyrighted Materials, or the System;
- b. engage in a public offering or private placement of some or all of our securities;
- c. merge with or acquire other Business Entities, or be acquired by
another Business Entity;
- d. undertake a refinancing, recapitalization, leveraged buy-out, or other economic or financial restructuring; and
- e.
Source: Item 22 — CONTRACTS (FDD pages 80–81)
What This Means (2025 FDD)
According to the 2025 Amorino FDD, Amorino has the right to acquire other business entities. Specifically, Amorino can merge with or acquire other business entities, or be acquired by another business entity. Amorino can also purchase, merge, acquire, or affiliate with an existing competitive or non-competitive franchise network, chain, or any other business, regardless of the location of that chain's or business's facilities. However, following such actions, these businesses cannot use Amorino's proprietary marks or other characteristics of Amorino stores.
This clause in the franchise agreement ensures that Amorino retains the flexibility to grow and evolve its business through mergers, acquisitions, and affiliations. For a franchisee, this means that the parent company could potentially undergo significant changes in structure or ownership. While the franchisee's agreement remains in place, the backing and resources of Amorino could change, potentially impacting the brand's direction and support systems.
Furthermore, Amorino can also acquire and continue to operate any business under different trademarks, even those similar to an Amorino store, both inside and outside the Area Development Territory. They can also establish other franchise systems involving different services or products using different trademarks, without offering the franchisee the right to participate. These rights allow Amorino to diversify its business interests without necessarily including existing franchisees in new ventures.
Prospective franchisees should be aware of these provisions, as they highlight Amorino's broad rights to expand and diversify, which could indirectly affect the franchisee's business environment. It would be prudent for potential franchisees to discuss Amorino's long-term growth strategies and how these strategies might impact their investment.