Does the Amorino franchise agreement allow for a transfer as a result of disability?
Amorino Franchise · 2025 FDDAnswer from 2025 FDD Document
alifications, or if you are a Business Entity, upon the singular personal skills and qualifications of your Principals. 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. Amorino will not unreasonably withhold its consent to a transfer of any interest in the Franchised Business, but may, in its sole discretion, condition such consent on satisfaction of any or all of the following:
- (1) All of your accrued monetary obligations to Amorino and its Affiliates, and all other outstanding obligations related to the Store shall be up to date, fully paid and satisfied.
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 the possibility of transfer due to disability. The agreement states that because Amorino relies on the franchisee's personal skills and qualifications, the franchisee generally cannot assign or transfer the agreement, whether voluntarily or involuntarily, including as a result of disability.
However, there is an exception: a franchisee can transfer their interest to a business entity they own under specific conditions. This exception allows for some flexibility in managing the franchise if the franchisee's personal circumstances change.
In the event of permanent incapacity, the agreement stipulates that the executor, administrator, or personal representative must transfer the interest to a third party approved by Amorino within six months. These transfers are subject to the same conditions as other transfers, meaning Amorino's approval is required, and the transferee must meet Amorino's standards.