Does the Amorino franchise agreement distinguish between curable and non-curable defaults?
Amorino Franchise · 2025 FDDAnswer from 2025 FDD Document
-----------------| | 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, the franchise agreement does differentiate between defaults that can be cured and those that cannot. Amorino can terminate the franchise agreement if a franchisee violates the agreement or defaults under any agreement with Amorino or its affiliates. If a franchisee breaches any agreement, Amorino can suspend its obligations until the breach is resolved.
For defaults that are curable, Amorino may terminate the agreement if the default isn't cured within 20 days of notice. However, for certain non-curable defaults, Amorino can terminate the agreement immediately without any opportunity to cure the default.
Examples of non-curable defaults include failing to make payments within 30 days of the due date, insolvency, bankruptcy, assigning assets to creditors, business dissolution, failure to acquire a site by the site selection date, failure to complete initial training or open the store by the specified dates, abandonment of the business, loss of necessary permits, conviction of a felony, unapproved transfers, repeated defaults, misrepresentations in the franchise application, understating sales, maintaining false records, failing to make payments to Amorino or its affiliates/suppliers, selling unauthorized products, violating confidentiality, purchasing goods from unapproved suppliers, failing two or more quality assurance inspections within a 12-month period, or failing to participate in advertising or marketing programs.