Besides termination, what additional remedy does Amorino have if a franchisee defaults?
Amorino Franchise · 2025 FDDAnswer from 2025 FDD Document
- E.
Our Right to Discontinue Services to You.
If you are in breach of any obligation under this Agreement, or any agreement with any of our affiliates, and we or our affiliates deliver to you a notice of default, we and our affiliates have the right to suspend performance
of any of our or their obligations to you under any agreement with you, including, without limitation, the sale or supply of any services, products or ingredients for which we or our affiliates are an approved supplier to you and/or suspension of your listing or webpage on our Website, until such time as you correct the breach.
- F. Additional Remedies. In addition to, or in lieu of, termination of this Agreement, in its sole discretion, Amorino may require the Store be closed during any cure period relating to a default based on public health and safety concerns.
Source: Item 22 — CONTRACTS (FDD pages 80–81)
What This Means (2025 FDD)
According to the 2025 Amorino FDD, besides terminating the franchise agreement, Amorino has additional remedies if a franchisee defaults. Amorino can suspend their obligations to the franchisee, including the sale or supply of services, products, or ingredients. They can also suspend the franchisee's listing on Amorino's website. This suspension remains in effect until the franchisee corrects the breach.
Additionally, Amorino has the right to require the store to close during any cure period related to a default if there are public health and safety concerns. This decision is at Amorino's sole discretion.
These remedies provide Amorino with options beyond immediate termination, allowing them to address the default while potentially allowing the franchisee to rectify the situation and continue operating the business. This approach can be beneficial for both parties, as it avoids the disruption and costs associated with terminating the franchise agreement while ensuring compliance and protecting Amorino's brand and reputation.