What is the exception to the rule that the franchisee cannot transfer the Amorino franchise agreement?
Amorino Franchise · 2025 FDDAnswer from 2025 FDD Document
Accordingly, except for a transfer to a Business Entity owned by you in the manner described in Section 15.C, you may not assign or transfer this Agreement or any rights or obligations under this Agreement, whether in whole or in part, voluntarily or involuntarily, by operation of law (including as a result of bankruptcy, divorce, death or disability).
Any transfer, except for a transfer to a Business Entity by you in the manner described in Section 15.C, is subject to our right of first refusal.
Source: Item 22 — CONTRACTS (FDD pages 80–81)
What This Means (2025 FDD)
According to Amorino's 2025 Franchise Disclosure Document, franchisees generally cannot transfer their franchise agreement due to Amorino's reliance on the franchisee's or its principals' personal skills and qualifications. However, there is an exception: a franchisee can transfer the agreement to a business entity they own, as described in Section 15.C of the agreement.
Even with this exception, any transfer, including to a franchisee-owned business entity, is subject to Amorino's right of first refusal. This means that before a franchisee can transfer the agreement to their business entity, Amorino has the option to either approve the transfer, deny the transfer, or take over the franchise themselves under the same terms offered to the proposed transferee.
Amorino may also place conditions on its consent to a transfer, such as requiring all financial and other obligations to be current and satisfied. This ensures that the franchise is in good standing before any transfer occurs. The transferee will also need to meet Amorino's standards for franchisees.