factual

What are the consequences for an Amorino franchisee who abandons the franchised business?

Amorino Franchise · 2025 FDD

Answer from 2025 FDD Document

-----------------| | franchisor | applicable. | | | without cause | | | | Termina | Section 16 of | We can terminate the franchise agreement if you commit any | | f. | | | | tion by | the franchise | one of a list of violations set forth in the franchise agreement, or | | franchisor with | agreement | if you default under any other agreement between you and | | cause | | either us or any of our affiliates. If you are in breach of any agreement with us or any of our affiliates, we have the right to suspend any obligations by us or our affiliates, including providing products or services, until the breach is cured. Some violations are capable of being cured and some cannot be cured. We can also terminate if an approved transfer is not completed within a certain period of time following your death or permanent incapacity. | | "Cause" | Section 16.B | We may terminate for any default, other than a default for the | | g. | | | | defined - | of the | reasons listed in Section 16.A, that is capable of being cured | | curable defaults | franchise | and the default has not been cured within 20 days of notice of | | | agreement | default. | | "Cause" | Section 16.A | We may terminate by giving you notice of termination upon | | h. | | | | defined – | of the | certain event, without any opportunity to cure: Your failure to | | non | | | | curable defaults | franchise | make any payment due under the franchise agreement within | | | agreement | 30 days of its due date; insolvency; voluntary bankruptcy; involuntary bankruptcy not dismissed within 30 days; general assignment for creditors, receivership, dissolution of your business entity; if execution is levied your business or property; foreclosure, levy and sale of assets of franchised business; failure to acquire a site by the site selection date; failure to complete initial training by opening date; failure to open Store by opening date; abandonment of the franchised business; loss of necessary permits and approvals to operate the franchised business; loss of right to occupy the Store premises; conviction of a felony or certain other crimes; unapproved transfers; repeated defaults, even if cured; misrepresentations in franchise application; knowingly understating your sales; knowingly maintaining false books or records; failure to make any payment when due to Amorino or any of its affiliates or approved suppliers, offering for sale or selling unauthorized products or services; violation of confidentiality and non-competition covenants; purchase or sale of gelato, sorbet, gelato macarons, or restricted dry goods which you purchased or obtained from an unapproved supplier; within any rolling 12-month period, your failure to pass two or more quality assurance inspections and or your failure to participate in any advertising or marketing programs. | | | | | Amorino Unit Franchise Disclosure Document –April 24, 2025 Page 56 of 80

| 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.

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, abandoning the franchised business is grounds for termination of the franchise agreement. If an Amorino franchisee abandons their business, Amorino can terminate the franchise agreement without providing an opportunity to cure the default.

Upon termination, the franchisee must immediately cease operating the store, discontinue using the Amorino franchise system and proprietary marks, and cancel any assumed name registrations containing the Amorino name or proprietary marks. The franchisee is also obligated to transfer rights to telephone numbers, email addresses, websites, or webpages to Amorino at Amorino's option.

Furthermore, the franchisee must modify the premises to remove any association with the Amorino brand, including dismantling visible signage, artwork, and decor. They must also return any proprietary information related to the franchised business and adhere to all post-termination covenants, such as non-compete agreements outlined in the franchise agreement. These measures ensure that the former franchisee does not continue to benefit from Amorino's brand recognition or trade secrets after the agreement is terminated.

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.