Does the reimbursement obligation for Amorino's enforcement costs include interest charges?
Amorino Franchise · 2025 FDDAnswer from 2025 FDD Document
You agree to reimburse us for, and to pay on demand, all costs and expenses that we may incur to enforce the terms of this Agreement, including the cost of collecting any monies that you may owe to us under this Agreement.
Such costs and expenses include reasonable collection agency fees, court costs, expert witness fees, discovery costs and reasonable attorneys' fees and costs, together with interest charges on all of the foregoing.
Source: Item 22 — CONTRACTS (FDD pages 80–81)
What This Means (2025 FDD)
According to Amorino's 2025 Franchise Disclosure Document, franchisees are responsible for reimbursing Amorino for all costs and expenses incurred to enforce the terms of the Franchise Agreement. This reimbursement extends to the costs of collecting any monies owed to Amorino under the agreement.
These costs and expenses specifically include reasonable collection agency fees, court costs, expert witness fees, discovery costs, and reasonable attorneys' fees and costs. Importantly, the reimbursement obligation also covers interest charges on all of the aforementioned costs and expenses.
This means that if Amorino has to take legal action to enforce the franchise agreement or collect outstanding payments, the franchisee will be responsible for not only the principal amounts of those costs but also any interest that accrues on them. This could significantly increase the financial burden on a franchisee in the event of a dispute or breach of contract.