If a transfer of an Amorino franchise is not completed, who is responsible for reimbursing Amorino's costs and expenses?
Amorino Franchise · 2025 FDDAnswer from 2025 FDD Document
You agree that you shall reimburse us for our reasonable costs and expenses (including legal fees) incurred in connection with the transfer even if the transfer is not ultimately completed.
Source: Item 22 — CONTRACTS (FDD pages 80–81)
What This Means (2025 FDD)
According to Amorino's 2025 Franchise Disclosure Document, the franchisee is responsible for reimbursing Amorino's costs and expenses, including legal fees, incurred in connection with a franchise transfer, even if the transfer is not ultimately completed.
This means that if a franchisee attempts to sell or transfer their Amorino franchise to a new owner, but the deal falls through for any reason, the original franchisee is still obligated to cover Amorino's expenses related to the attempted transfer. These expenses can include legal fees, costs for background checks on the potential new owner, and other reasonable costs incurred by Amorino during the transfer process.
This provision protects Amorino by ensuring they are not financially burdened by failed transfer attempts. However, it also places a financial risk on the franchisee, who could incur significant expenses even if they are unable to successfully transfer their franchise. A prospective franchisee should carefully consider this potential cost and discuss it with Amorino to understand the types of expenses that could be incurred and how they are calculated.