Can an Amorino franchisee who is in default of their obligations be an assignee?
Amorino Franchise · 2025 FDDAnswer from 2025 FDD Document
(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.
(2) You must be in full compliance with this Agreement and any other agreemen
Source: Item 22 — CONTRACTS (FDD pages 80–81)
What This Means (2025 FDD)
According to Amorino's 2025 Franchise Disclosure Document, a franchisee in default of their obligations faces restrictions on assignment. Specifically, if a franchisee has outstanding financial or other obligations related to the store, they must be fully compliant with the franchise agreement and any other agreements before a transfer can be considered.
Amorino emphasizes that the franchise agreement is granted based on the unique skills and qualifications of the franchisee or its principals. Therefore, any transfer of the agreement, except to a business entity owned by the franchisee under specific conditions, requires Amorino's consent, which will not be unreasonably withheld but may be conditional.
To gain approval for a transfer, the franchisee must ensure all monetary obligations to Amorino and its affiliates are current, and all other outstanding obligations related to the store are fully satisfied. This condition underscores Amorino's interest in maintaining the financial health and operational standards of its franchises, ensuring that any new franchisee (assignee) starts with a clean slate and is capable of upholding the brand's reputation and standards.