When must the Amorino franchisee pay the renewal fee?

According to Amorino's 2025 Franchise Disclosure Document, a franchisee must pay the renewal fee no later than 30 days prior to the expiration of the current franchise term. The renewal fee is equal to twenty-five percent (25%) of Amorino's then-current initial franchise fee for each five-year renewal term. This payment must be made at the same time the franchisee signs an amendment to the existing agreement, or at Amorino's option, signs the then-current form of franchise agreement or an agreement stipulating renewal of the existing agreement.

This means that if an Amorino franchisee wants to renew their franchise, they need to be prepared to pay a significant fee a month before their current term ends. The fee is a percentage of the initial franchise fee, so it could be a substantial amount. Franchisees should factor this into their financial planning if they anticipate renewing their franchise agreement.

It is important to note that paying the renewal fee is only one of the conditions for renewal. The franchisee must also provide written notice of intent to renew, not be in default of the agreement, complete any required training and renovations, and sign a general release. Failing to meet any of these conditions could prevent the franchisee from being able to renew their franchise.

Prospective franchisees should confirm the current initial franchise fee with Amorino to accurately estimate the renewal fee. They should also carefully review all the conditions for renewal in the Franchise Agreement to ensure they can meet all requirements within the specified timeframes.