Does Amorino have discretion in how it applies payments from franchisees?
Amorino Franchise · 2025 FDDAnswer from 2025 FDD Document
If you pay less than the amount due, your payment will be considered a partial payment on account of the amount owed.
Amorino may accept such payment as a partial payment, irrespective of any endorsement or other statement by you that the payment constitutes full payment.
Amorino's acceptance of any partial payment will not be considered a waiver of any of its right to demand or receive full payment, and you hereby waive any defense in this regard.
Amorino may apply your payments to any amount owed to Amorino by you, in its sole and reasonable discretion, regardless of any designation that accompanies the payment.
Source: Item 22 — CONTRACTS (FDD pages 80–81)
What This Means (2025 FDD)
According to Amorino's 2025 Franchise Disclosure Document, Amorino has the authority to allocate a franchisee's payments to any outstanding balance the franchisee owes. This means that if a franchisee makes a payment that is less than the total amount due, Amorino can apply that payment to any portion of the debt at its discretion.
This policy has significant implications for franchisees. Even if a franchisee intends a payment to cover a specific fee or invoice, Amorino is not obligated to honor that designation. Amorino can instead apply the payment to older debts, outstanding interest, or any other amount owed. This could result in certain obligations remaining unpaid for longer than the franchisee anticipates, potentially triggering late fees or other penalties.
Franchisees should be aware of this policy and maintain careful records of all payments and outstanding balances. If a franchisee wants to ensure that a payment is applied to a specific obligation, they may need to communicate directly with Amorino and obtain written confirmation of the payment's allocation. This level of diligence can help franchisees avoid misunderstandings and potential disputes over payment application.