Does Amorino have the right to approve the lease terms for the Franchised Location?
Amorino Franchise · 2025 FDDAnswer from 2025 FDD Document
- (1) If you will occupy the Franchised Location under a lease (the "Lease"), regardless of whether or not the landlord is a related party or a third-party landlord, Amorino shall have the right to approve the Lease terms, and the Lease may not be signed by you until it has been reviewed and approved by Amorino.
You acknowledge and agree that Amorino's approval of a Lease does not mean that the economic terms of the Lease are favorable; it means only that the Lease contains the Lease terms that Amorino requires.
(2) The Lease must contain certain provisions that we reasonably require, including the following terms:
a.
The premises shall be used only as an Amorino franchise, and for no other purpose whatsoever.
- b.
The landlord must consent to your use of the Proprietary Marks, signs, interior and exterior decor, furnishings, fixtures, items, color schemes, plans, specifications, and related components of the System that Amorino may require.
- c.
The Lease shall permit assignment by you only in connection with a sale of the Franchised Business that is approved by us or to Amorino or its designee.
- d.
An acknowledgement by the landlord and you that Amorino shall not be a party to the Lease and will have no liability under the Lease, unless and until the Lease is assumed by Amorino.
- e.
Neither the landlord nor you shall amend or modify the Lease, or renew or extend the term of the Lease, without our prior written consent.
- f.
Amorino (or another party we designate) shall have the ability to take possession of the premises and operate the Franchised Business without having to first receive landlord's consent, in the event of your default under the Lease or this Agreement, or the expiration or termination of this Agreement.
- g.
Amorino shall have the right to enter the premises (announced or unannounced) to perform quality assurance inspections, to make any modifications we deem necessary to protect the System and the Proprietary Marks, to cure any default under this Agreement or the Lease, and to ensure compliance with any other obligations you have under this Agreement.
- (3) You agree to use commercially reasonable efforts to have your lessor agree to the Collateral Assignment of Lease in substantially the form attached as Attachment D and to advise us what steps you have taken in that regard.
If you are not successful in having that document signed, you agree that we may contact your prospective lessor to attempt to have the documents signed or to have the lessor agree to it as we may modify.
No such modifications
will cause you to be exposed to any expense or liability other than what is already in your lease or in this Franchise Agreement.
(4) The Lease and the Collateral Lease Assignment, if one is obtained, must be fully signed on or before the Site Selection Date, and you shall provide to Amorino a fully executed copy of the Lease within 10 days after its execution.
Source: Item 22 — CONTRACTS (FDD pages 80–81)
What This Means (2025 FDD)
According to Amorino's 2025 Franchise Disclosure Document, Amorino has the right to approve the lease terms for the Franchised Location. The FDD states that if a franchisee will occupy the Franchised Location under a lease, Amorino has the right to approve the lease terms, and the franchisee cannot sign the lease until Amorino has reviewed and approved it. However, Amorino's approval of a lease does not mean that the economic terms of the lease are favorable, but only that the lease contains the lease terms that Amorino requires.
Several provisions must be included in the lease, such as that the premises can only be used as an Amorino franchise, the landlord must consent to the use of Amorino's Proprietary Marks, and the lease can only be assigned in connection with a sale of the Franchised Business approved by Amorino. The lease must also acknowledge that Amorino is not a party to the lease and has no liability under it, unless Amorino assumes the lease. Additionally, neither the landlord nor the franchisee can amend, modify, renew, or extend the lease without Amorino's prior written consent.
Furthermore, Amorino has the right to take possession of the premises and operate the Franchised Business without the landlord's consent if the franchisee defaults under the lease or the Franchise Agreement, or if the agreement expires or terminates. The franchisee must use commercially reasonable efforts to have the lessor agree to a Collateral Assignment of Lease. If the franchisee is unsuccessful, Amorino may contact the prospective lessor to attempt to have the documents signed or modified. The lease and the Collateral Lease Assignment, if obtained, must be fully signed on or before the Site Selection Date, and the franchisee must provide Amorino with a fully executed copy of the lease within 10 days after its execution.
This level of control allows Amorino to maintain uniformity and protect its brand. However, it also places the onus on the franchisee to negotiate favorable economic terms, as Amorino's approval focuses on specific required clauses rather than the overall financial viability of the lease for the franchisee. Prospective franchisees should carefully consider these requirements and seek professional advice when negotiating their lease agreements.