What is the term length of the franchise agreement that the transferee of an Amorino franchise will receive?
Amorino Franchise · 2025 FDDAnswer from 2025 FDD Document
- (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.
Source: Item 22 — CONTRACTS (FDD pages 80–81)
What This Means (2025 FDD)
According to Amorino's 2025 Franchise Disclosure Document, a transferee who purchases an existing Amorino franchise will not receive a brand new franchise agreement with a standard term. Instead, the transferee will assume the remaining term of the original franchise agreement at the time of the transfer. This means the new franchisee will operate under the existing agreement until its original expiration date, without any automatic rights to renew the franchise beyond that point.
This arrangement has important implications for potential buyers. If the original franchise is nearing the end of its term, the transferee will need to quickly focus on meeting Amorino's requirements for renewal, which can include store renovations, updated equipment, and signing Amorino's then-current franchise agreement, which may have different terms and fees. This could create a compressed timeline and added financial pressure compared to starting a new franchise with a full term.
It is crucial for prospective transferees to carefully evaluate the remaining term of the franchise agreement and understand the conditions for renewal. They should also be prepared for the possibility of negotiating a new agreement with potentially different terms if they wish to continue operating the Amorino franchise beyond the original term. This differs from a new franchise agreement, where the franchisee typically enjoys a full initial term and pre-defined renewal options.