Is the Amorino franchisee's owner required to sign the release and covenant not to sue?
Amorino Franchise · 2025 FDDAnswer from 2025 FDD Document
leted all such items.
- (8) You shall promptly pay all sums owing to us and our Affiliates.
- (9) Except as limited by applicable law, you shall sign a general release, and cause each person who has guaranteed your obligations under this Agreement to sign, a general release in a form satisfactory to us, of any and all claims you may have against Amorino, our subsidiaries and Affiliates and our/their respective officers, directors, managers, members, shareholders, and partners in our/their corporate/company and individual capacities.
Source: Item 22 — CONTRACTS (FDD pages 80–81)
What This Means (2025 FDD)
According to the 2025 Amorino Franchise Disclosure Document, when transferring a franchise, both the franchisee and all owners are required to sign a reaffirmation of all obligations of confidentiality and obligations restricting competition with Amorino. This indicates that the franchisee owner is required to sign a covenant not to sue.
Additionally, upon termination of the Franchise Agreement, the franchisee is required to sign a general release of any and all claims against Amorino and its affiliates, in a form satisfactory to Amorino, except as limited by applicable law. This release must also be signed by each person who has guaranteed the franchisee's obligations under the agreement.
These requirements are fairly standard in franchising, as franchisors seek to protect their brand, trade secrets, and customer relationships. The non-compete agreement prevents former franchisees from using Amorino's confidential information to start a competing business, while the general release aims to prevent future legal claims against the franchisor.