Does the Amorino franchise agreement allow a franchisee to deduct any fees owed to Amorino?
Amorino Franchise · 2025 FDDAnswer from 2025 FDD Document
- K.
No Withholding or Set-Off Rights.
You may not set off, deduct or otherwise withhold any fees or other amounts due to Amorino under this Agreement on grounds of alleged nonperformance by Amorino of any of its obligations or for any other reason.
Source: Item 22 — CONTRACTS (FDD pages 80–81)
What This Means (2025 FDD)
According to Amorino's 2025 Franchise Disclosure Document, franchisees are explicitly prohibited from deducting or withholding any fees owed to Amorino. The franchise agreement states that franchisees cannot offset, deduct, or withhold any fees or other amounts due to Amorino under the agreement. This restriction applies regardless of any alleged nonperformance by Amorino or any other reason a franchisee might cite.
This provision means that an Amorino franchisee must pay all fees as they come due, even if they believe Amorino has not fulfilled its obligations. If a franchisee has a dispute with Amorino, they must still remit all payments and pursue other legal avenues to resolve the issue. Failure to pay fees when due could result in penalties, interest charges, or even termination of the franchise agreement.
This type of clause is relatively common in franchise agreements. Franchisors want to ensure a consistent revenue stream and avoid disputes over fees. However, it places a significant financial burden on the franchisee, who must continue to pay even if they have legitimate grievances. Prospective Amorino franchisees should carefully consider this provision and understand the potential financial risks involved.
It is important for potential franchisees to seek legal counsel to fully understand the implications of this clause and to assess their risk tolerance before investing in an Amorino franchise. Understanding this clause and its implications can help a franchisee make informed decisions about their investment and business operations.