What information regarding financial interests in my business entity can Amorino request from me?
Amorino Franchise · 2025 FDDAnswer from 2025 FDD Document
- (4) You represent and warrant that neither you nor any of your Affiliates or Principals own, operate or have any financial or beneficial interest in any business that is the same as or similar to an Amorino Store.
- (2) If you are a Business Entity, you represent and warrant to Amorino that: (a) you are duly organized, validly existing and in good standing under the law of the state of your formation; (b) you are duly qualified and authorized to do business in each jurisdiction in which your business activities or the nature of the properties you own requires such qualification; (c) you have full corporate, limited liability company or partnership (as applicable) power and authority to enter into and perform your obligations under this Agreement; (d) ) the execution, delivery and performance of this Agreement by you have been duly and validly authorized by all necessary action, and (e) your organizational and other governance documents will at all times provide that your sole purpose shall be to own and operate the Franchised Business and take such actions that are necessary in connection with such ownership and operation.
- (4) The Organizational Documents of such Business Entity shall recite that the issuance and transfer of any securities or interest in the Business Entity are restricted by the terms of this Agreement. If we do consent to any transfer, each Principal of the Business Entity and their spouse or registered domestic partner must provide a personal guaranty in our then-current form of personal guaranty.
- (3) You must own and control 100% of the equity interest of the Business Entity, and no interest may be transferred without our prior written consent.
- (5) The Organizational Documents of such Business Entity may not be amended or revised without our prior written consent.
- (6) The Business Entity must remain in existence and in good standing during the term of this Agreement, and you shall not take any actions to dissolve the Business Entity.
Source: Item 22 — CONTRACTS (FDD pages 80–81)
What This Means (2025 FDD)
According to Amorino's 2025 Franchise Disclosure Document, if you operate as a Business Entity, Amorino can request specific financial and organizational information. Amorino requires that you represent and warrant that you do not own, operate, or have any financial or beneficial interest in any business that is the same as or similar to an Amorino store.
If you are a Business Entity, Amorino requires you to be duly organized, validly existing, and in good standing under the law of your state. You must be qualified and authorized to conduct business in any jurisdiction where your activities or properties require such qualification. Your organizational documents must state that your sole purpose is to own and operate the Franchised Business. These documents cannot be amended without Amorino's prior written consent, and the entity must remain in good standing during the term of the agreement.
Furthermore, the organizational documents must state that the issuance and transfer of any securities or interest in the Business Entity are restricted by the terms of the Franchise Agreement. If Amorino consents to any transfer of interest, each Principal of the Business Entity and their spouse or registered domestic partner must provide a personal guaranty. You must own and control 100% of the equity interest of the Business Entity, and no interest may be transferred without Amorino's prior written consent.