What is the deadline for Amorino to respond to an Area Developer's notice of a proposed assignment?
Amorino Franchise · 2025 FDDAnswer from 2025 FDD Document
- (b) Within thirty (30) days after Franchisor's receipt of such notice (or if Franchisor shall request additional information, within thirty (30) days after receipt of such additional information), Franchisor may either consent or withhold its consent to such assignment, or, at its option, accept the assignment to itself or to its nominee upon the terms and conditions specified in the notice. Franchisor may substitute an equivalent sum of cash for any consideration other than cash specified in said notice.
Source: Item 22 — CONTRACTS (FDD pages 80–81)
What This Means (2025 FDD)
According to Amorino's 2025 Franchise Disclosure Document, Amorino has 30 days to respond to an Area Developer's notice of a proposed assignment. Specifically, after receiving written notice from the Area Developer with all the terms of the proposed assignment and information about the assignee, Amorino has thirty (30) days to either consent to the assignment, withhold consent, or exercise its right of first refusal to accept the assignment itself. If Amorino requests additional information, the 30-day period begins after they receive the additional information.
If Amorino does not exercise its right of first refusal and consents to the assignment, the Area Developer is free to assign the agreement to the proposed assignee under the terms specified in the notice. However, if the terms change materially or the assignment does not occur within 90 days, it is considered a new proposal, and Amorino has the right of first refusal again.
This clause protects Amorino by giving them the opportunity to approve any transfer of the Area Development Agreement. This is a common practice in franchising, as franchisors want to ensure that any new Area Developers meet their standards and are capable of operating the business effectively. The right of first refusal allows Amorino to maintain control over who becomes an Area Developer in their system. The 30-day response window provides a defined timeframe for the Area Developer, but it's important to note that requesting additional information can extend this period.