factual

Does the Amorino franchise agreement allow for involuntary transfers due to death or disability?

Amorino Franchise · 2025 FDD

Answer from 2025 FDD Document

  • E.

Transfer Upon Death or Incapacitation.

Upon the death or permanent incapacity (mental or physical) of any person with a majority or controlling interest in this Agreement, in you, or in all or substantially all of the assets of the Franchised Business, the executor, administrator, or personal representative of such person shall transfer such interest to a third party approved by Amorino within six months after such death or mental incapacity.

Such transfers, including transfers by devise or inheritance, shall be subject to the same.

Source: Item 22 — CONTRACTS (FDD pages 80–81)

What This Means (2025 FDD)

According to Amorino's 2025 Franchise Disclosure Document, the franchise agreement addresses transfers upon death or incapacitation. Specifically, if a person with a majority or controlling interest in the agreement, the franchisee, or the assets of the franchised business dies or becomes permanently incapacitated (mentally or physically), their executor, administrator, or personal representative must transfer the interest to a third party approved by Amorino within six months.

These transfers, including those by devise or inheritance, are subject to the same conditions as other transfers. This means that the standard transfer requirements outlined in the franchise agreement, such as Amorino's approval of the transferee, financial obligations being current, and the transferee meeting Amorino's standards, will apply.

This clause ensures that in the event of death or incapacitation, the Amorino franchise can continue operating under a qualified and approved owner, maintaining the brand's standards and business viability. However, it also places a responsibility on the franchisee's estate to find a suitable buyer within a limited timeframe, subject to Amorino's approval, which could potentially create challenges for the family or estate of the deceased or incapacitated franchisee.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.