What capabilities must the assignee have for Amorino to assign the franchise agreement?
Amorino Franchise · 2025 FDDAnswer from 2025 FDD Document
| Franchisee' i. s obligations on termination/non -renewal | Sections 17 and 18.D of the franchise agreement | Immediately cease operating the Store, cease use of franchise system and Proprietary Marks, cancel assumed or equivalent name registrations containing the Proprietary Marks or the name "Amorino", cease to use and at our option, assign to us your rights to telephone numbers, email addresses, internet websites or webpages, make certain necessary modifications to premises and de-identify the premises completely of any association with Amorino, hide all physical aspects of the brand inside and outside the premises. In particular, any visible signage, recognizable artwork or decor must be dismantled, return any proprietary information relating to the franchised business, and comply with all post termination covenants (such as covenant not to compete) set forth in franchise agreement. |
|---|---|---|
| Assign j. ment of contract by franchisor | Section 15.A of the franchise agreement | No restrictions on our right to assign, provided the assignee is capable of performing and assumes our obligations under the franchise agreement. |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER, AND DISPUTE RESOLUTION (FDD pages 55–67)
What This Means (2025 FDD)
According to Amorino's 2025 Franchise Disclosure Document, Amorino has no restrictions on assigning its franchise agreement, provided the assignee can perform and assumes Amorino's obligations under the agreement. This means that if Amorino decides to transfer the franchise agreement to another party, that party must be capable of fulfilling all the responsibilities and duties that Amorino currently has under the agreement.
For a prospective franchisee, this clause is important because it clarifies that Amorino can transfer its obligations to another entity. While the FDD does not elaborate on the specific criteria Amorino uses to assess an assignee's capabilities, it implies that the assignee should have the resources, experience, and expertise necessary to successfully manage the franchise system.
This is a fairly standard clause in franchise agreements, as it allows the franchisor flexibility in managing its business. However, it also introduces a degree of uncertainty for franchisees, as they may find themselves dealing with a new franchisor at some point during the term of their agreement. Prospective franchisees may want to inquire about Amorino's criteria for evaluating potential assignees to better understand the implications of this clause.