What section of the Amorino area development agreement defines 'transfer' by the franchisee?
Amorino Franchise · 2025 FDDAnswer from 2025 FDD Document
| Assign j. ment of contract by franchisor | Section 7.1 of the area development agreement | or operate additional Stores which are not, at the time of such termination or expiration, the subject of a then existing franchise agreement between you and us, and we may ourselves, equip, open, own or operate, or license others to construct, equip, open, own or operate Stores in your territory, except as provided in any franchise agreement executed pursuant to the area development agreement. We shall have the right to assign the area development agreement, or any of its rights and privileges to any other person, firm or corporation without your prior consents. |
|---|---|---|
| "Transfe k. r" by franchisee - defined | Section 7.3 of the area development agreement | Neither your interest in the area development agreement, nor any of your rights or privileges shall be assigned or transferred, voluntarily or involuntarily, in whole or in part, by operation of law or otherwise, in any manner, without our prior written consent, which may be withheld for any reason or for no reason |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER, AND DISPUTE RESOLUTION (FDD pages 55–67)
What This Means (2025 FDD)
According to Amorino's 2025 Franchise Disclosure Document, Section 7.3 of the area development agreement defines 'transfer' by the franchisee. This section states that franchisees cannot assign or transfer their interest in the area development agreement, or any rights or privileges associated with it, without prior written consent from Amorino. This restriction applies to both voluntary and involuntary transfers, whether they occur through operation of law or any other means.
This requirement for franchisor consent is a standard practice in franchising, allowing Amorino to maintain control over who enters into an agreement with them and ensuring that new franchisees meet their standards. Amorino has the right to withhold consent for any reason or no reason at all, giving them broad discretion over transfers.
For a prospective Amorino franchisee, this means that if they wish to sell their business or transfer their rights to someone else, they must first obtain Amorino's approval. Amorino's decision to approve or deny the transfer is at their discretion, so franchisees should not assume that they will be able to exit the agreement easily. This could impact the franchisee's ability to recoup their investment if they decide to sell the business.