Must all amounts owed to Amorino under the Agreement be paid as of the Opening Date?
Amorino Franchise · 2025 FDDAnswer from 2025 FDD Document
- A. Opening Date. You must build out the Store in conformance with our specifications and open the Franchised Business within one hundred eighty days after you have purchased or leased an approved Franchise Location. ("Opening Date"). If you fail to complete the build out and open the Franchise Business within this time frame, we may terminate this Agreement without refunding any fees to you.
- B. Amorino Consent and Conditions to Opening. Our prior written consent is required for the opening of the Store. Prior to our giving such consent, the following conditions must be met:
- (1) you have paid all amounts owed to Amorino under this Agreement as of the Opening Date;
- (2) the Store has been designed, constructed and equipped according to Amorino's standards and specifications;
- (3) you have completed the initial training program to our satisfaction;
- (4) you have provided us with a signed electronic funds transfer authorization described in Section 6.M by no later than the Site Selection Date;
- (5) you have provided us with the required policy of insurance as described in Section 14.B;
- (6) Each Principal and their spouse or domestic partner shall have delivered to Amorino a guaranty in the form attached hereto as Attachment B; and
- (7) you are otherwise in compliance under this Agreement.
Source: Item 22 — CONTRACTS (FDD pages 80–81)
What This Means (2025 FDD)
According to Amorino's 2025 Franchise Disclosure Document, a franchisee must pay all amounts owed to Amorino under the Franchise Agreement as of the Opening Date. Amorino requires its prior written consent for the store opening. Before Amorino gives consent, the franchisee must have met several conditions, including paying all due amounts, designing and constructing the store according to Amorino's standards, completing the initial training program, providing a signed electronic funds transfer authorization, providing the required insurance policy, ensuring each principal and their spouse or domestic partner delivers a guaranty, and otherwise being in compliance with the agreement.
This requirement ensures that Amorino receives all due payments before the franchisee begins operations. This is a fairly standard practice in franchising, as it protects the franchisor's financial interests and ensures that the franchisee is in good standing before commencing business.
Failure to meet these conditions, including the payment of all outstanding amounts, could delay or prevent the store opening. If the franchisee fails to open the franchise business within 180 days after purchasing or leasing an approved location, Amorino may terminate the agreement without refunding any fees.