What documents must an Amorino franchisee sign at the time of paying the renewal fee?
Amorino Franchise · 2025 FDDAnswer from 2025 FDD Document
ers, 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;
- (6) no later than 30 days prior to the expiration of the current term, have each person who has guaranteed your obligations under this Agreement sign a renewal or reaffirmation of such guarantee in form satisfactory to us;
Source: Item 22 — CONTRACTS (FDD pages 80–81)
What This Means (2025 FDD)
According to Amorino's 2025 Franchise Disclosure Document, to renew the franchise agreement, a franchisee must sign an amendment to the agreement, the then-current form of the franchise agreement, or an agreement stipulating renewal of the current agreement at the same time as paying the renewal fee. The amendment would reflect any new terms of Amorino's then-current form of franchise agreement. The renewal fee is equal to 25% of the then-current initial franchise fee for each five-year renewal term.
In addition to the documents signed at the time of paying the renewal fee, 30 days prior to the expiration of the current term, the franchisee must also have each person who has guaranteed their obligations under the agreement sign a general release in a form satisfactory to Amorino. This release covers Amorino, its subsidiaries, affiliates, and their respective officers, directors, managers, members, shareholders, and partners in their corporate and individual capacities.
It is important for prospective Amorino franchisees to understand these requirements for renewal, as they involve both financial obligations (the renewal fee) and legal commitments (the signing of agreements and releases). The terms of the franchise agreement may be materially different from the original agreement, potentially including different or higher fees. Franchisees should carefully review all documents and seek legal counsel to fully understand their rights and obligations before signing.