If Amorino or its designee assumes the lease, what are the franchisee's obligations regarding leasehold improvements?
Amorino Franchise · 2025 FDDAnswer from 2025 FDD Document
- (1) You hereby grant Amorino or its designee the option (and your Lease shall specifically permit) to assume your Lease upon expiration or termination of the Franchise Agreement, which option shall be exercised upon the delivery to you of written notice within 30 days following expiration or termination of this Agreement. If Amorino or its designee assumes your Lease, you agree to sell, transfer, and convey to the assignee your interest (if any) in all leasehold improvements, without further consideration.
- (2) If Amorino or its designee does not request assignment of the Lease before expiration of this 30-day period, then within 10 days after termination or expiration of this Agreement, you shall make all modifications or alterations to the Store premises (including changing the color scheme, removing all signs and other distinctive design features) and removal of all materials and products containing Proprietary Marks, as may be necessary to distinguish the appearance of the Franchised Location from that of other Amorino Stores, and make such specific additional changes to the Franchised Location as Amorino may reasonably request for that purpose.
Source: Item 22 — CONTRACTS (FDD pages 80–81)
What This Means (2025 FDD)
According to Amorino's 2025 Franchise Disclosure Document, if Amorino or its designee exercises the option to assume the lease upon the expiration or termination of the Franchise Agreement, the franchisee is obligated to sell, transfer, and convey their interest (if any) in all leasehold improvements to the assignee without receiving any further compensation. This option must be exercised within 30 days following the expiration or termination of the agreement via written notice to the franchisee.
This provision means that an Amorino franchisee will not be compensated for any investments made in leasehold improvements if Amorino or its designee decides to take over the lease. Leasehold improvements can include significant investments in the store's physical structure, such as flooring, walls, and fixtures. The franchisee essentially forfeits these improvements to Amorino or its designee.
However, if Amorino or its designee does not request assignment of the Lease within 30 days after termination or expiration of the Agreement, the franchisee is responsible for making all necessary modifications or alterations to the store premises within 10 days. This includes changing the color scheme, removing all signs and distinctive design features, and removing all materials and products containing Proprietary Marks. The franchisee must also make any additional specific changes to the Franchised Location that Amorino may reasonably request to differentiate the location from other Amorino stores. This ensures that the location no longer resembles an Amorino franchise, preventing any confusion or association with the brand after the franchise agreement ends.