Who must execute the Amorino release agreement?
Amorino Franchise · 2025 FDDAnswer from 2025 FDD Document
resides or is based near the Store, and otherwise satisfies our then current criteria for the selection of franchisees.
- (5) You and each of your Principals shall have executed a general release, in a form satisfactory to Amorino, of any and all claims against Amorino and its Affiliates and their respective officers, directors, shareholders, members, equity holders, agents and employees in their corporate/company and individual capacities, including claims arising under federal, state and local laws, rules and ordinances; provided, however, that any release will not be inconsistent with any state law regulating franchising.
- (6) The transferee shall have executed Amorino's then-current form of franchise agreement, the terms of which may be materially different than the terms of this Agreement and may include, among other things, a different royalty fee and different advertising obligations. The term of such agreement shall be the remaining term of this Agreement at the time of transfer, without any rights of renewal.
Source: Item 22 — CONTRACTS (FDD pages 80–81)
What This Means (2025 FDD)
According to Amorino's 2025 Franchise Disclosure Document, in the event of a transfer of the franchise, both the franchisee and their Principals must execute a general release. This release must be in a form satisfactory to Amorino, and it covers any and all claims against Amorino, its affiliates, and their respective officers, directors, shareholders, members, equity holders, agents, and employees in their corporate/company and individual capacities. The release includes claims arising under federal, state, and local laws, rules, and ordinances. However, the release will not be inconsistent with any state law regulating franchising.
Additionally, if the franchise agreement is terminated, the franchisee must sign a general release, and must also ensure that each person who has guaranteed their obligations under the agreement also signs a general release. This release must be in a form satisfactory to Amorino, and covers any and all claims against Amorino, its subsidiaries and Affiliates and their respective officers, directors, managers, members, shareholders, and partners in their corporate/company and individual capacities.
This requirement ensures that Amorino is protected from potential legal claims by the franchisee and related parties upon transfer or termination of the franchise agreement. It is a common practice in franchising to include such releases to mitigate future legal risks and ensure a clean break between the parties. Prospective franchisees should carefully review the terms of the release and understand its implications before signing the franchise agreement.