Is the failure to make any payment when due to Amorino's affiliates grounds for termination?
Amorino Franchise · 2025 FDDAnswer from 2025 FDD Document
| ation by | Not | Not applicable. |
|---|---|---|
| franchisor | applicable. | |
| without cause | ||
| Termina | Section 16 of | We can terminate the franchise agreement if you commit any |
| f. | ||
| tion by | the franchise | one of a list of violations set forth in the franchise agreement, or |
| franchisor with | agreement | if you default under any other agreement between you and |
| cause | either us or any of our affiliates. If you are in breach of any agreement with us or any of our affiliates, we have the right to suspend any obligations by us or our affiliates, including providing products or services, until the breach is cured. Some violations are capable of being cured and some cannot be cured. We can also terminate if an approved transfer is not completed within a certain period of time following your death or permanent incapacity. | |
| "Cause" | Section 16.B | We may terminate for any default, other than a default for the |
| g. | ||
| defined - | of the | reasons listed in Section 16.A, that is capable of being cured |
| curable defaults | franchise | and the default has not been cured within 20 days of notice of |
| agreement | default. | |
| "Cause" | Section 16.A | We may terminate by giving you notice of termination upon |
| h. | ||
| defined – | of the | certain event, without any opportunity to cure: Your failure to |
| non | ||
| curable defaults | franchise | make any payment due under the franchise agreement within |
| agreement | 30 days of its due date; insolvency; voluntary bankruptcy; involuntary bankruptcy not dismissed within 30 days; general assignment for creditors, receivership, dissolution of your business entity; if execution is levied your business or property; foreclosure, levy and sale of assets of franchised business; failure to acquire a site by the site selection date; failure to complete initial training by opening date; failure to open Store by opening date; abandonment of the franchised business; loss of necessary permits and approvals to operate the franchised business; loss of right to occupy the Store premises; conviction of a felony or certain other crimes; unapproved transfers; repeated defaults, even if cured; misrepresentations in franchise application; knowingly understating your sales; knowingly maintaining false books or records; failure to make any payment when due to Amorino or any of its affiliates or approved suppliers, offering for sale or selling unauthorized products or services; violation of confidentiality and non-competition covenants; purchase or sale of gelato, sorbet, gelato macarons, or restricted dry goods which you purchased or obtained from an unapproved supplier; within any rolling 12-month period, your failure to pass two or more quality assurance inspections and or your failure to participate in any advertising or marketing programs. |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER, AND DISPUTE RESOLUTION (FDD pages 55–67)
What This Means (2025 FDD)
According to Amorino's 2025 Franchise Disclosure Document, failure to make payments to Amorino or its affiliates is indeed grounds for termination. Specifically, Amorino can terminate the franchise agreement if a franchisee fails to make any payment when due to Amorino or any of its affiliates or approved suppliers. This is considered a non-curable default, meaning Amorino does not have to give the franchisee an opportunity to correct the issue before terminating the agreement.
This policy is stricter than some franchise agreements, which allow a grace period to cure payment defaults. The Amorino franchise agreement stipulates that any late payment to Amorino, its affiliates, or approved suppliers can result in immediate termination. This highlights the importance of maintaining good financial standing and adhering to payment schedules within the Amorino franchise system.
Prospective franchisees should be aware of this strict termination clause and ensure they have sufficient financial resources and management systems in place to meet all payment obligations promptly. It would be prudent to discuss this policy with existing franchisees to understand how it is enforced in practice and what measures they take to avoid payment defaults.