If an Amorino franchisee continues operating after expiration without renewal, can Amorino terminate the arrangement?
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, Amorino has the sole discretion to terminate the arrangement.
This provision in the franchise agreement means that an Amorino franchisee cannot assume that they can continue operating their Amorino business indefinitely simply because the initial term has ended. Even if the franchisee is still running the business, Amorino retains the right to terminate the agreement at any time. This protects Amorino's brand and ensures that all franchisees meet their standards and obligations.
For a prospective Amorino franchisee, this highlights the importance of adhering to the renewal terms outlined in the franchise agreement. Failing to renew properly puts the franchisee at risk of losing their franchise, even if they are still operating the business. It is crucial to understand and comply with all renewal requirements, including providing timely notice, addressing any defaults, completing required training and renovations, signing releases, and paying renewal fees, to avoid potential termination by Amorino.