Does the Amorino Collateral Assignment of Lease specify any geographic limits related to the assignment?
Amorino Franchise · 2025 FDDAnswer from 2025 FDD Document
| THIS COLLATERAL ASSIGNMENT OF LEASE (this "Assignment") is entered into as of, |
|---|
| 20, between("Franchisee") |
| and |
| CPUSA, LLC, a |
| Delaware limited liability |
| company ("Franchisor") |
| Subject to the provisions hereof, Franchisee, to secure its obligations to the Franchisor under |
| the franchise agreement between the Franchisor and Franchisee for the operation of an Amorino |
| Store or Outlet, dated, 20 (the "Franchise Agreement") and under every |
| agreement between Franchisee and the Franchisor, hereby assigns, transfers and sets over unto |
| Franchisor and/or such person(s)/entity(ies) as Franchisor may from time-to-time designate all of |
| Franchisee's right, title and interest, whether as tenant or otherwise, in, to and under that certain |
| lease (the "Lease"), a copy is attached to this Assignment, dated, 20, between |
| Franchisee and ("Landlord"), respecting |
| that property commonly known as |
| (the "Premises"). The Franchisor shall have no liabilities or obligations of any kind arising from, |
| or in connection with, this Assignment, the Lease or otherwise (including, but not limited to, any |
| obligation to pay rent and/or other amounts) until and unless |
| the Franchisor, at the Franchisor's |
| option and in its sole discretion, takes possession of the Premises pursuant to the terms hereof and |
| expressly (and in writing) assumes the rights and obligations of Franchisee under the Lease. The |
| Franchisor is only responsible for those obligations accruing after the date of such assumption. |
Source: Item 22 — CONTRACTS (FDD pages 80–81)
What This Means (2025 FDD)
According to the 2025 Amorino Franchise Disclosure Document, the Collateral Assignment of Lease does not specify explicit geographic limits. The document outlines the agreement between the franchisee and Amorino, where the franchisee assigns their rights and interest in the lease to Amorino to secure their obligations under the franchise agreement. The collateral assignment of lease is used to secure the franchisee's obligations to Amorino.
The agreement specifies that the franchisee assigns their rights to the lease for the property commonly known as the "Premises." Amorino has no liabilities or obligations until it takes possession of the premises and assumes the franchisee's obligations under the lease. The landlord also agrees to notify Amorino of any default by the franchisee and allows Amorino to cure the default.
While the Collateral Assignment of Lease itself doesn't define geographic limits, the initial site selection process does involve a defined "Site Selection Area" as noted in the Data Sheet. The Franchised Location must fall within this area and meet Amorino's site selection criteria. Therefore, while the assignment doesn't have explicit geographic limits, the lease to which it applies is tied to an approved location within a specific area. A prospective franchisee should review the Data Sheet to understand the defined Site Selection Area.