What constitutes a default that would prevent an Amorino franchisee from renewing their agreement?
Amorino Franchise · 2025 FDDAnswer from 2025 FDD Document
a Sheet unless otherwise restricted by law, regardless of the date on which the Store opens to the public for business.
- B. Renewal Terms. You may renew your franchise rights for two additional consecutive five-year terms, provided that this Agreement has not been validly terminated for any reason prior to the expiration of the then-current term, and provided you:
- (1) give us written notice of your intent to renew the franchise at least three months (but no more than six months) prior to expiration of the initial or current renewal term;
- (2) are not in Default of this Agreement (on the date you give notice of renewal or on the date that the new term will commence) and no event has occurred and is continuing which by the giving of notice or the expiration of any cure period would constitute a Default under this Agreement, or any successor franchise agreement (as applicable) and have substantially complied with the terms and conditions of this Agreement or any successor franchise agreement (as applicable) throughout the term;
- (3) complete any training we require and complete the renovations and updates to the Store described in Section 2.C(1);
- (4) no later than 30 days prior to the expiration of the current term, sign, and have each person who has guaranteed your obligations under this Agreement sign, a general release in a form satisfactory to us, of Amorino and our subsidiaries and Affiliates and our/their respective officers, directors, managers, members, shareholders, and partners in our/their corporate and individual capacities;
- (5) no later than 30 days prior to the expiration of the current term, (a) pay a renewal fee equal to twenty five percent (25%) of our then current initial franchise fee for each five years of renewal, at the same time that you (b) sign an amendment to this Agreement to reflect any new terms of our then-current form of franchise agreement, or at our option, sign the then-current form of franchise agreement or an agreement stipulating renewal of this Agreement;
Source: Item 22 — CONTRACTS (FDD pages 80–81)
What This Means (2025 FDD)
According to Amorino's 2025 Franchise Disclosure Document, an Amorino franchisee may be prevented from renewing their franchise agreement if they are in default of the agreement either on the date they give notice of renewal or on the date the new term commences. Additionally, if an event has occurred and is continuing, which, after notice or the expiration of any cure period, would constitute a default under the agreement, renewal may be denied. Substantial compliance with the terms and conditions of the agreement throughout the term is also required for renewal.
To renew the franchise, the franchisee must provide written notice of their intent to renew at least three months (but no more than six months) before the expiration of the current term. They must also complete any required training and store renovations as specified by Amorino. Furthermore, no later than 30 days before the expiration of the current term, the franchisee and any guarantors must sign a general release in a form satisfactory to Amorino, releasing Amorino and its affiliates from any liabilities.
In addition to the above, the franchisee must pay a renewal fee equal to 25% of Amorino's then-current initial franchise fee for each five-year renewal period, and sign an amendment to the agreement reflecting any new terms of Amorino's current franchise agreement. Alternatively, Amorino may require the franchisee to sign the then-current form of franchise agreement or an agreement stipulating renewal of the existing agreement. Meeting all these conditions is essential for an Amorino franchisee to successfully renew their franchise rights.