Is subfranchising permitted by the Area Developer under the Amorino Area Development Agreement?

According to Amorino's 2025 Franchise Disclosure Document, Area Developers are explicitly prohibited from subfranchising. The Area Developer cannot offer, sell, or negotiate the sale of Amorino franchises to any third party. This restriction applies whether the Area Developer acts in their own name or on behalf of Amorino. The agreement specifies that nothing within it should be interpreted as granting the Area Developer the right to subfranchise.

This restriction means that Area Developers must directly manage the development of Amorino stores within their designated territory. They cannot delegate the responsibility of finding and managing new franchisees to another party. This ensures that Amorino maintains control over the quality and consistency of its brand and operations.

This policy is relatively common in franchising, as franchisors typically want to maintain direct relationships with all franchisees to ensure compliance with brand standards and operational procedures. By preventing subfranchising, Amorino can more effectively manage its expansion and protect its brand reputation.