In the Amorino franchise agreement, what is the importance of time with respect to all provisions?
Amorino Franchise · 2025 FDDAnswer from 2025 FDD Document
at our option, sign the then-current form of franchise agreement or an agreement stipulating renewal of this Agreement;
- (6) no later than 30 days prior to the expiration of the current term, have each person who has guaranteed your obligations under this Agreement sign a renewal or reaffirmation of such guarantee in form satisfactory to us; and
- (7) no later than 30 days prior to the expiration of the current term, provide evidence that you have a valid and existing lease to occupy the Store premises for the length of the renewal term and that we retain the same rights under the Lease that we had during the initial term to occupy the premises under a collateral assignment of Lease.
- C. Provisions Governing Renewal. The following provisions will govern any renewal term:
- (1) You must make any improvements that Amorino deems necessary to bring the Store into conformity with Amorino's then-current standards for its franchisees. No later than 180 days prior to expiration of the current term, Amorino will give you a list of all necessary renovations, upgrades, and new or replacement furniture, fixtures, and equipment that must be purchased or installed, however failure to timely provide such list shall not be a waiver of Amorino's right to require that such improvements or upgrades be made. As a condition of your renewal, you must perform such work and replace such furniture, fixtures and equipment prior to expiration of the then-current term.
- (2) At least 60 days before the expiration of the current term, we will deliver to you a copy of our then-current franchise agreement or an applicable amendment which will govern the renewal term. The terms of such franchise agreement may be materially different from the terms of this Agreement including different or higher fees.
- (3) Amorino may extend any of the deadlines set forth above in Section 2.B or this Section 2.0 in its sole discretion. Amorino's failure to strictly comply with the time periods shall not be a waiver of any of Amorino's rights related to the extension.
- (4) In the event you continue operating the Franchised Business following the expiration or termination of this Agreement without renewing your franchise rights in accordance with Section 2.B, such arrangement will be considered an extension of this Agreement during that period of time but shall be subject to termination at the sole discretion of Amorino. In addition, you and any guarantor of your obligations under this Agreement agree to indemnify Amorino in the event that such operation causes any cost, expense, liability or damage to you or Amorino. The inclusion in this Agreement of this Section 2.C(4) shall not be construed in any way as our giving you permission to continue operations after expiration or termination of this Agreement.
3. OUR SERVICES
- A. Training. We shall provide you with initial training prior to the opening of the Store, and shall provide additional training as we deem appropriate. Training is further described in Section 7.
- B. Advisory Assistance. We shall provide initial and continuing advisory assistance in the operation of the Store as we deem appropriate, as further described in Sections 7.C and 7.D.
- C. System Specifications. We shall provide you with a set of specifications for you to utilize the System in the operation of the Store.
Source: Item 22 — CONTRACTS (FDD pages 80–81)
What This Means (2025 FDD)
According to Amorino's 2025 Franchise Disclosure Document, time is a critical element in several aspects of the franchise agreement, especially concerning renewal, termination, and operational deadlines. Strict adherence to these timelines is essential for franchisees to maintain their rights and avoid potential defaults or termination of the agreement.
For franchise renewal, the franchisee must provide written notice of their intent to renew the franchise between three and six months before the current term expires. Additionally, franchisees must ensure that all guarantors sign a renewal or reaffirmation of their guarantee no later than 30 days before the expiration of the current term. They must also provide evidence of a valid lease for the renewal term, with Amorino retaining the same rights under the lease, also no later than 30 days prior to the expiration of the current term. Amorino will provide a list of required renovations 180 days prior to the expiration of the current term, and these renovations must be completed before the term's expiration. Failure to meet these deadlines can jeopardize the franchisee's ability to renew their franchise.
Regarding the opening of the franchise, the franchisee is required to open the franchised business within 180 days after purchasing or leasing an approved location. Failure to open within this timeframe may result in the termination of the agreement without any refund of fees. Furthermore, all notices required under the agreement, such as those related to breaches or disputes, must be delivered in writing and are considered delivered at specific times depending on the method of delivery: immediately if personally delivered, the next business day if sent by a nationally recognized next-day delivery service, or within four business days if sent by registered or certified mail.
In cases where a franchisee's lease expires, Amorino will not terminate the agreement if the franchisee relocates and reopens the store within 180 days from the lease termination date. The term of the agreement will be extended by the amount of time between the termination of the prior lease and the opening of the relocated facility. Overall, the Amorino franchise agreement places significant emphasis on meeting specified deadlines, and franchisees must diligently track and comply with these timelines to ensure the successful operation and renewal of their franchise.