What additional expenses are associated with the Amorino transfer fee?
Amorino Franchise · 2025 FDDAnswer from 2025 FDD Document
F. Transfer Fee. In connection with a transfer of the Franchised Business, you must pay the applicable transfer fee in accordance with Section 15.
(7) If the transferee is a Business Entity, then each of the transferee's Principals and their spouse or registered domestic partner shall have delivered to us a guaranty in our then-current standard form of guaranty.
(9) The transferee must complete Amorino's then-current initial training program to our satisfaction.
(10) You or the transferee shall have paid the amount specified as the "Transfer Fee" in the Data Sheet plus the reimbursement of our reasonable costs and expenses incurred in connection with the transfer (including legal fees), including our costs to obtain background checks on the transferee and its Principals.
You agree that you shall reimburse us for our reasonable costs and expenses (including legal fees) incurred in connection with the transfer even if the transfer is not ultimately completed.
- (12) The Store must comply with Franchisor's up to date standards or transferee must present an acceptable remodeling plan to us, subject to our approval.
Source: Item 22 — CONTRACTS (FDD pages 80–81)
What This Means (2025 FDD)
According to Amorino's 2025 Franchise Disclosure Document, if a franchisee transfers their business, they must pay a transfer fee, the amount of which is specified in the Data Sheet. In addition to this fee, the franchisee or the transferee is responsible for reimbursing Amorino's reasonable costs and expenses, including legal fees, incurred during the transfer process, even if the transfer is not completed. These costs also cover Amorino's expenses to obtain background checks on the transferee and its Principals.
Furthermore, if the transferee is a Business Entity, each of the transferee's Principals and their spouse or registered domestic partner must deliver a guaranty to Amorino. The transferee must also complete Amorino's current initial training program to Amorino's satisfaction. The store must also comply with Amorino's up-to-date standards, or the transferee must present an acceptable remodeling plan for Amorino's approval.
These additional expenses associated with the transfer fee can potentially be significant, especially if legal fees are high or if extensive remodeling is required to meet Amorino's current standards. Prospective franchisees should consider these potential costs when evaluating the financial implications of a future transfer.