Does the Amorino Area Development Agreement permit subfranchising by the Area Developer?

According to Amorino's 2025 Franchise Disclosure Document, Area Developers are explicitly prohibited from subfranchising. The agreement states that Area Developers cannot offer, sell, or negotiate the sale of Amorino franchises to any third party, either in their own name or on behalf of the company. This restriction also extends to any form of subfranchising, sharing, dividing, or partitioning the agreement.

This means that an Area Developer's rights are limited to developing and operating Amorino stores themselves within their designated territory. They cannot grant franchise rights to other individuals or entities. This is a significant restriction, as it prevents Area Developers from expanding their network through subfranchising, which is a common growth strategy in some franchise systems.

The agreement emphasizes that it should not be interpreted as granting Area Developers the right to subfranchise. This clause is designed to ensure that Amorino maintains direct control over the selection and management of its franchisees, ensuring consistency and quality across the brand. Prospective Area Developers should be aware of this restriction and factor it into their business plans, as it limits their ability to leverage the franchise model for rapid expansion through subfranchisees.

While the Area Developer cannot subfranchise, Amorino retains the right to assign the Area Development Agreement to another party without the Area Developer's consent. However, the assignee must assume and agree to perform the obligations of Amorino. This provision protects Amorino's flexibility in managing its franchise network and ensuring the continued performance of its obligations under the Area Development Agreement.