What happens if an Amorino franchisee continues operating the Franchised Business following the expiration or termination of the Agreement without renewing?
Amorino Franchise · 2025 FDDAnswer from 2025 FDD Document
- (4) In the event you continue operating the Franchised Business following the expiration or termination of this Agreement without renewing your franchise rights in accordance with Section 2.B, such arrangement will be considered an extension of this Agreement during that period of time but shall be subject to termination at the sole discretion of Amorino.
Source: Item 22 — CONTRACTS (FDD pages 80–81)
What This Means (2025 FDD)
According to Amorino's 2025 Franchise Disclosure Document, if a franchisee continues to operate the Franchised Business after the expiration or termination of the agreement without formally renewing their franchise rights, this holdover period will be treated as an extension of the original agreement. However, this extension is subject to termination at Amorino's sole discretion.
This means that while the franchisee can continue operations, Amorino retains the right to terminate the arrangement at any time. The franchisee does not have the security of a renewed franchise agreement and is essentially operating on a conditional basis.
This clause protects Amorino by ensuring that franchisees do not continue using the Amorino system and brand without a valid agreement, and it allows Amorino to maintain control over its brand and franchise network. For a prospective franchisee, it highlights the importance of adhering to the renewal terms and securing a formal renewal to avoid the uncertainty of operating under this type of extension.