What happens if an Amorino franchisee fails to make any payment when due to Amorino or its affiliates?

According to Amorino's 2025 Franchise Disclosure Document, failure to make any payment when due to Amorino or any of its affiliates or approved suppliers constitutes a breach of the franchise agreement. This can lead to termination of the agreement and loss of the franchisee's rights.

Amorino and its affiliates have various remedies available, including terminating the franchisee's rights and suspending their own obligations to the franchisee. They can also suspend services, such as the sale or supply of products and ingredients, and remove the franchisee's listing from the Amorino website until the breach is corrected. Amorino may also require the store to close during any cure period relating to a default based on public health and safety concerns.

Additionally, any default under the franchise agreement or any agreement with Amorino or its affiliates, such as a lease, vendor agreement, or supply agreement, is considered a default under the franchise agreement. This cross-default provision means that a franchisee's failure to meet obligations in one area can trigger consequences under the franchise agreement. Amorino also states that the franchisee may not set off, deduct, or otherwise withhold any fees or other amounts due to Amorino under this Agreement on grounds of alleged nonperformance by Amorino of any of its obligations or for any other reason.

These terms highlight the importance of franchisees maintaining timely payments to Amorino and its affiliates to avoid potential penalties, service disruptions, or even termination of the franchise agreement. Prospective franchisees should carefully review the payment terms and default provisions in the franchise agreement to fully understand their obligations and the potential consequences of non-payment.