Besides the $1,000 transfer fee, what other expenses must an Amorino franchisee pay for a transfer?
Amorino Franchise · 2025 FDDAnswer from 2025 FDD Document
| Independent Audit Made by Us Business Interruption Proceeds Fee | plus travel and related expenses of independent certified public accountant 4% of proceeds of business interruption insurance received by franchisee | incurred; cost of audit payable upon receipt of audit report. When proceeds are received. | Payable to the Franchisor when Franchisee is closed as a result of a casualty or other event that is covered by your business interruption insurance policy. |
|---|---|---|---|
| Renewal Fee | 25% of our then current initial franchise fee, for each five years of renewal | Thirty days before the expiration of the term of your existing agreement | Thirty days before the expiration of the term of your existing agreement, you must pay this renewal fee, and at the same time, you must sign an amendment, stipulation, or new franchise agreement reflecting the renewal term and the terms of our then current form of franchise agreement |
| Transfer Fee (4) | $1,000 plus our expenses relating to the transfer | Before effective date of transfer | In addition to the transfer fee, you must pay our expenses (including legal fees) relating to the transfer. See Item 17 for more information about restrictions |
Source: Item 6 — OTHER FEES (FDD pages 17–22)
What This Means (2025 FDD)
According to Amorino's 2025 Franchise Disclosure Document, in addition to the $1,000 transfer fee, a franchisee must also cover Amorino's expenses related to the transfer. These expenses may include legal fees. Item 17 of the FDD provides further details regarding transfer restrictions and conditions.
This means that if a franchisee decides to sell their Amorino franchise to another party, they will not only have to pay the $1,000 transfer fee, but also reimburse Amorino for any costs the company incurs during the transfer process. These costs could include legal counsel to review the transfer agreement and ensure it meets Amorino's standards and protects their interests.
It is important for prospective franchisees to carefully review Item 17 of the FDD to fully understand the conditions and restrictions associated with transferring their franchise. Understanding these requirements can help franchisees plan for potential exit strategies and avoid unexpected costs should they decide to sell their Amorino business in the future. Franchisees should also factor in potential legal fees and other expenses when considering a transfer.