factual

What conditions apply to transfers of an Amorino franchise interest upon death or incapacitation?

Amorino Franchise · 2025 FDD

Answer from 2025 FDD Document

Upon the death or permanent incapacity (mental or physical) of any person with a majority or controlling interest in this Agreement, in you, or in all or substantially all of the assets of the Franchised Business, the executor, administrator, or personal representative of such person shall transfer such interest to a third party approved by Amorino within six months after such death or mental incapacity.

Such transfers, including transfers by devise or inheritance, shall be subject to the same.

Source: Item 22 — CONTRACTS (FDD pages 80–81)

What This Means (2025 FDD)

According to Amorino's 2025 Franchise Disclosure Document, if a person holding a majority or controlling interest in the franchise agreement, the franchisee, or the assets of the franchised business dies or becomes permanently incapacitated (mentally or physically), their executor, administrator, or personal representative must transfer the interest to a third party approved by Amorino within six months of the death or incapacitation. These transfers, including those by devise or inheritance, are subject to the same conditions as other transfers.

This means that the estate of the deceased or incapacitated franchisee must find a buyer who is acceptable to Amorino within a relatively short timeframe. The potential buyer will likely need to meet Amorino's standard franchisee qualifications and undergo their approval process. This could include a review of their financial stability, business experience, and personal background.

If a suitable buyer cannot be found and approved within the six-month period, Amorino retains the right to terminate the franchise agreement. This could result in a significant loss for the franchisee's estate, as the value of the business may be diminished or lost entirely. Prospective franchisees should consider these implications and discuss with Amorino what support they might offer in such a situation, and how flexible they might be on the six month deadline.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.