Must all of the franchisee's monetary obligations to Amorino be up to date before a transfer can be approved?

According to Amorino's 2025 Franchise Disclosure Document, a franchisee must be current on all financial obligations to Amorino and its affiliates before a transfer of the franchise can be approved. Specifically, all accrued monetary obligations, as well as any other outstanding obligations related to the store, must be fully paid and satisfied. This requirement ensures that Amorino does not have any outstanding financial issues with the franchisee at the time of transfer.

This condition is one of several that Amorino may impose, at its discretion, before consenting to a transfer. Other conditions include ensuring the transferee meets Amorino's standards for education, management, business acumen, moral character, credit rating, and financial resources. The transferee must also execute Amorino's current franchise agreement, which may have different terms than the original agreement, and complete the initial training program.

Furthermore, both the transferring franchisee and their principals must sign a general release of claims against Amorino. The franchisee or the transferee is also responsible for paying a transfer fee and reimbursing Amorino's costs associated with the transfer, regardless of whether the transfer is ultimately completed. The store must also comply with Amorino's current standards, or the transferee must present an acceptable remodeling plan.

These stipulations are typical in franchising, as franchisors want to maintain brand standards and ensure that new franchisees are well-qualified and financially stable. For a prospective Amorino franchisee, this means understanding all financial obligations and maintaining good standing with the franchisor is crucial if they plan to sell their franchise in the future. They should also be prepared for potential costs associated with the transfer process and the possibility of needing to upgrade the store to meet current standards.