What remedies does Amorino have if a franchisee defaults under the franchise agreement?
Amorino Franchise · 2025 FDDAnswer from 2025 FDD Document
ch as Amorino branded cones) which you purchased or obtained from a source or supplier other than an approved supplier.
- B. Termination with 20-Day Cure Period. Amorino has the right to terminate this Agreement, which termination will become effective upon delivery of written notice of termination, if the default is other than as provided in Section 16.A above, and is of a nature that it is capable of being cured and the default has not been cured within twenty (20) days of receipt of such notice, otherwise, the termination shall be effective immediately upon receipt of the notice. However, if the default is of such a nature that more than 20 days are reasonably required to cure the violation, we will give you such additional time as is reasonably necessary to cure the default as long as you start the corrective action within the initial 20-day period and proceed with the cure diligently to its completion.
- C. Termination Related to Death or Permanent Incapacity. Amorino has the right to terminate this Agreement if an approved transfer is not completed within the designated time frame following a death or permanent incapacity (mental or physical) of Franchisee (if an individual) or the sole Principal of Franchisee.
- D. Cross-Defaults, Non-Exclusive Remedies. Any default under this Agreement or of any obligation owed to us or our affiliates, whether hereunder or under another agreement with us, or any default under any agreement related to the Franchised Business, such as a lease, a vendor agreement, invoice, order, supply agreement, or subcontract, will be regarded as a default under this Agreement. In each of the foregoing cases, we and our affiliates will have all remedies allowed hereunder and at law, including termination of your rights (and/or those of any person/company affiliated with you) and our (and/or our affiliates') obligations. No right or remedy which we may have (including termination) is exclusive of any other right or remedy provided under law or equity and we may pursue any rights and/or remedies available.
- E. Our Right to Discontinue Services to You. If you are in breach of any obligation under this Agreement, or any agreement with any of our affiliates, and we or our affiliates deliver to you a notice of default, we and our affiliates have the right to suspend performance
of any of our or their obligations to you under any agreement with you, including, without limitation, the sale or supply of any services, products or ingredients for which we or our affiliates are an approved supplier to you and/or suspension of your listing or webpage on our Website, until such time as you correct the breach.
- F. Additional Remedies. In addition to, or in lieu of, termination of this Agreement, in its sole discretion, Amorino may require the Store be closed during any cure period relating to a default based on public health and safety concerns.
- G. Termination by Franchisee.
Source: Item 22 — CONTRACTS (FDD pages 80–81)
What This Means (2025 FDD)
According to Amorino's 2025 Franchise Disclosure Document, if a franchisee defaults under the franchise agreement, Amorino has several remedies available. These remedies include termination of the agreement, with varying cure periods depending on the nature of the default. For defaults other than those specified in Section 16.A, Amorino will provide written notice, and the franchisee has 20 days to cure the default. However, if more than 20 days are needed to cure the violation, Amorino will allow additional time, provided the franchisee begins corrective action within the initial 20-day period and diligently works to complete it.
Amorino can also terminate the agreement if an approved transfer is not completed within a specified timeframe following the death or permanent incapacity of the franchisee or the sole principal of the franchisee. Furthermore, any default under the franchise agreement, or any obligation owed to Amorino or its affiliates, is considered a default under the agreement. This includes defaults under other agreements related to the franchised business, such as leases or vendor agreements.
In the event of a default, Amorino and its affiliates have all remedies allowed under the agreement and at law, including termination of the franchisee's rights and Amorino's obligations. These remedies are not exclusive, and Amorino may pursue any other rights or remedies available under law or equity. Additionally, if a franchisee breaches any obligation under the agreement, Amorino can suspend performance of its obligations, including the sale or supply of services, products, or ingredients, and suspension of the franchisee's listing on Amorino's website until the breach is corrected. Amorino may also require the store to be closed during any cure period relating to a default based on public health and safety concerns.
These terms are typical in franchise agreements, as they protect the franchisor's brand and system. Prospective franchisees should carefully review these default and termination provisions to understand their obligations and the potential consequences of failing to meet them. It is also important to understand what constitutes a default and what steps can be taken to cure a default and avoid termination.