What is the Amorino landlord required to do if the Amorino franchisee defaults on the lease?
Amorino Franchise · 2025 FDDAnswer from 2025 FDD Document
LANDLORD APPROVAL:
The undersigned Landlord under the Lease hereby:
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- Agrees to notify Franchisor in writing of any default and any failure of Franchisee to cure any default under the Lease;
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- Agrees that Franchisor shall have the right, but not be obligated, to cure any default by Franchisee under the Lease within 30 days after delivery by Lessor of written notice thereof;
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- Consents to the foregoing Collateral Lease Assignment and agrees that if Franchisor takes possession of the Premises and confirms to Landlord the assumption of the Lease by Franchisor as tenant, Landlord shall recognize Franchisor, or its designee, as tenant under the Lease;
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- Agrees that Franchisor may further assign the Lease or sublet the Premises to a designee and/or a person or entity who is an Amorino franchise owner reasonably acceptable to Landlord. Franchisor will have no further liability under the Lease upon such an assignment. This Approval of Landlord shall apply to any subsequent Amorino franchise owner;
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- Agrees to provide a copy of this Collateral Lease Assignment to any actual and/or prospective purchaser of the Premises.
Source: Item 22 — CONTRACTS (FDD pages 80–81)
What This Means (2025 FDD)
According to Amorino's 2025 Franchise Disclosure Document, if an Amorino franchisee defaults on their lease, the landlord has specific obligations outlined in the Landlord Approval agreement. The landlord must notify Amorino in writing of any default by the franchisee and any failure to cure that default. This notification is a critical step, as it triggers Amorino's right to intervene and protect its interest in the location.
Upon receiving notice of default, Amorino has the right, but not the obligation, to cure the franchisee's default within 30 days. This gives Amorino the opportunity to prevent eviction and maintain the franchise location. Furthermore, if Amorino chooses to take possession of the premises and confirms to the landlord that it is assuming the lease, the landlord must recognize Amorino (or its designee) as the new tenant under the lease. This provision ensures that Amorino can continue operating the franchise at that location, either directly or through another franchisee.
The landlord must also consent to Amorino's right to further assign the lease or sublet the premises to another Amorino franchise owner, provided that the new owner is reasonably acceptable to the landlord. Upon such an assignment, Amorino is released from any further liability under the lease. Finally, the landlord agrees to provide a copy of the Collateral Lease Assignment to any actual or prospective purchaser of the premises, ensuring transparency and continued adherence to these terms even if the property changes ownership. These requirements are designed to protect Amorino's interests and ensure the continuity of the franchise, even in the event of a franchisee's default.