What is the Amorino franchisee's responsibility regarding maintaining sufficient funds for payments?
Amorino Franchise · 2025 FDDAnswer from 2025 FDD Document
payment shall be due on the next Business Day following the Due Date.
- M. Operating Account; Electronic Fund Transfer. You shall maintain one operating account to make all payments required by this Agreement, and shall participate in Amorino's then-current electronic funds transfer program authorizing Amorino to use a pre-authorized bank draft system for the operating account. You agree to: (a) make sufficient funds available in the operating account no later than the Due Date for any required payments; and (b) perform such acts and sign and deliver such documents as are necessary to accomplish payment to Amorino by electronic funds transfer, including signing and delivering appropriate pre-authorized draft forms designated by Amorino as necessary to initiate debit and/or credit the operating account. You acknowledge that notwithstanding the provisions of this Section 6, we have the right, in our sole discretion, to require you to pay any amounts owed to us under this Agreement by another
method, and you agree to comply with our payment instructions and procedures that we specify in the writing (including as may be specified in the Manual).
- N. Payment Procedures.
Source: Item 22 — CONTRACTS (FDD pages 80–81)
What This Means (2025 FDD)
According to Amorino's 2025 Franchise Disclosure Document, franchisees are required to maintain an operating account for all payments due under the franchise agreement and must participate in Amorino's electronic funds transfer program. This means Amorino is authorized to use a pre-authorized bank draft system to debit the franchisee's account for fees.
The franchisee is specifically responsible for ensuring sufficient funds are available in the operating account by the due date for any required payments. They must also perform all necessary actions and sign documents to facilitate payment to Amorino via electronic funds transfer, including pre-authorized draft forms.
If a franchisee fails to have sufficient funds available, they will be responsible for any associated fees charged by financial institutions or electronic funds transfer networks. Amorino also charges a nonsufficient funds fee of $50, which increases to $100 for any subsequent occurrences within a 12-month period. Additionally, the franchisee must reimburse Amorino for all expenses incurred due to the insufficient funds. This highlights the importance of careful financial management and planning to avoid penalties and maintain a positive relationship with the franchisor.