Is the Amorino franchisee required to follow an agreed development schedule?
Amorino Franchise · 2025 FDDAnswer from 2025 FDD Document
- D.
Franchisee desires to obtain, and Franchisor desires to give Franchisee, the exclusive rights and obligations to open multiple additional Amorino Stores within a designated geographic area, according to an agreed development schedule, and the terms set forth herein.
II. AREA DEVELOPER'S DEVELOPMENT SCHEDULE OBLIGATION
2.1 Minimum Development Obligation
Area Developer hereby agrees to construct, equip, open and thereafter continue to operate within the Area Development Territory the number and types of Stores set forth in Schedule "A," which is annexed hereto and by this reference made a part hereof, within each of the time periods set forth in Schedule A (hereafter the "Minimum Development Obligation"). Time is of the essence.
2.2 Area Developer May Exceed Minimum Development Obligation
During the Term, Area Developer may, subject to the terms and conditions of this Agreement and the Franchise Agreements, construct, equip, open and operate more Stores in the Area Development Territory than required in the Minimum Development Obligation.
Source: Item 22 — CONTRACTS (FDD pages 80–81)
What This Means (2025 FDD)
Yes, according to Amorino's 2025 Franchise Disclosure Document, franchisees who sign an Area Development Agreement are required to adhere to an agreed-upon development schedule. The FDD specifies that the Area Developer is granted the exclusive right to develop Amorino stores within a defined territory, subject to the conditions of the Area Development Agreement.
The Area Developer must construct, equip, open, and operate a specific number of stores within the Area Development Territory, as detailed in Schedule A of the agreement. These stores must be opened within the time periods also outlined in Schedule A, which is referred to as the "Minimum Development Obligation." The agreement emphasizes that time is of the essence in meeting this obligation.
While franchisees must meet the minimum development obligation, the Amorino FDD also states that Area Developers can exceed this minimum by opening and operating more stores than required, subject to the terms and conditions of both the Area Development Agreement and the Franchise Agreements. This provides some flexibility for expansion beyond the initial commitment.
Prospective franchisees should carefully review Schedule A of the Area Development Agreement to fully understand the specific number of stores they are required to open and the corresponding deadlines. Failure to meet the Minimum Development Obligation could result in penalties or termination of the agreement.