What standards must a transferee meet to be approved to operate an Amorino franchise?
Amorino Franchise · 2025 FDDAnswer from 2025 FDD Document
hised Business, but may, in its sole discretion, condition such consent on satisfaction of any or all of the following:
- (1) All of your accrued monetary obligations to Amorino and its Affiliates, and all other outstanding obligations related to the Store shall be up to date, fully paid and satisfied.
- (2) You must be in full compliance with this Agreement and any other agreements between you and Amorino, its Affiliates and your suppliers.
- (3) You shall have requested consent in writing and delivered to Amorino a completed copy of "Amorino Transfer Disclosure Form", as well as a copy of the proposed transfer agreements, including sale terms, and your lease agreement, at least 30 days prior to the proposed transfer, and Amorino has determined, in its sole and reasonable discretion, that the terms of the sale will not materially and adversely affect the post transfer viability of the Franchised Business.
- (4) The transferee must demonstrate to our satisfaction that the transferee meets our educational, managerial and business standards; possesses a good moral character, business reputation and credit rating; has the aptitude and ability to conduct the Franchised Business; has adequate financial resources and capital to operate the Store; resides or is based near the Store, and otherwise satisfies our then current criteria for the selection of franchisees.
- (5) You and each of your Principals shall have executed a general release, in a form satisfactory to Amorino, of any and all claims against Amorino and its Affiliates and their respective officers, directors, shareholders, members, equity holders, agents and employees in their corporate/company and individual capacities, including claims arising under federal, state and local laws, rules and ordinances; provided, however, that any release will not be inconsistent with any state law regulating franchising.
- (6) The transferee shall have executed Amorino's then-current form of franchise agreement, the terms of which may be materially different than the terms of this Agreement and may include, among other things, a different royalty fee and different advertising obligations. The term of such agreement shall be the remaining term of this Agreement at the time of transfer, without any rights of renewal.
- (7) If the transferee is a Business Entity, then each of the transferee's Principals and their spouse or registered domestic partner shall have delivered to us a guaranty in our then-current standard form of guaranty.
- (8) You and all owners shall sign a reaffirmation of all obligation of confidentiality and obligation restrictive competition with Amorino.
- (9) The transferee must complete Amorino's then-current initial training program to our satisfaction.
Source: Item 22 — CONTRACTS (FDD pages 80–81)
What This Means (2025 FDD)
According to Amorino's 2025 Franchise Disclosure Document, a transferee must meet several standards to be approved to operate an Amorino franchise. The transferee must demonstrate that they meet Amorino's educational, managerial, and business standards. They must also possess a good moral character, business reputation, and credit rating, as well as the aptitude and ability to conduct the franchised business. Furthermore, the transferee needs to have adequate financial resources and capital to operate the store and reside or be based near the store. The transferee must generally satisfy Amorino's then-current criteria for selecting franchisees.
Additionally, the transferee is required to execute Amorino's current form of franchise agreement, which may have terms that differ significantly from the original agreement, potentially including different royalty fees and advertising obligations. The term of the new agreement will be the remaining term of the original agreement at the time of transfer, without any renewal rights. If the transferee is a business entity, each principal and their spouse or registered domestic partner must provide a guaranty in Amorino's standard form. The transferee must also complete Amorino's then-current initial training program to Amorino's satisfaction.
Moreover, the store must comply with Amorino's up-to-date standards, or the transferee must present an acceptable remodeling plan for Amorino's approval. The transferee must pay the specified transfer fee, as outlined in the Data Sheet, and reimburse Amorino for reasonable costs and expenses related to the transfer, including legal fees and background check costs. Both the transferor and transferee must provide and sign all other required documents and take any other actions reasonably required by Amorino. The transferor must ensure that all monetary obligations to Amorino and its affiliates are current, fully paid, and satisfied, and they must be in full compliance with all agreements with Amorino and its affiliates.