What does 'Then-current' mean in the Amorino Area Development Agreement, as applied to the Franchise Disclosure Document and Area Development Agreement?
Amorino Franchise · 2025 FDDAnswer from 2025 FDD Document
At the time Company delivers to Area Developer Company's written notice of its determination to undertake additional development in the Area Development Territory, Company shall also deliver to Area Developer a copy of Company's then-current Franchise Disclosure Document or its equivalent as may be required by applicable law (the "Disclosure Document") and two copies of the then-current area development agreement. ("Then-current," as used in this Agreement and applied to the Franchise Disclosure Document and Area Development Agreement shall mean the form then currently provided to prospective franchisees or Area Developers, or if not then being so provided, then such form selected by the Company in its sole discretion which previously has been delivered to and executed by a franchisee of Company). The new area development agreement may vary substantially from this Agreement, except that: (a) the new area development agreement shall provide for the same percentage discounts for the initial franchise fees to be paid on the individual franchise agreements for the third and additional Stores as provided in Schedule C to this Area Development (provided that Area Developer has opened at least two Stores during the term of this Area Development Agreement); and (b) Area Developer shall not be required to pay another Area Development Franchise Fee, although Company may impose other types of fees or charges. The new area development agreement will reflect Area Developer's new development obligation consistent with Company's plan for additional development set forth in its notice to Area Developer. Within thirty (30) days after Area Developer's receipt of the Franchise Disclosure Document and the new area development agreement, but no sooner than immediately after any applicable waiting periods prescribed by law ("Disclosure Period") have passed, Area Developer shall execute two copies of the Area Development Agreement described in the Franchise Disclosure Document and return them to Company. If Area Developer has so executed and returned the copies and has satisfied the
Source: Item 22 — CONTRACTS (FDD pages 80–81)
What This Means (2025 FDD)
According to the 2025 Amorino Franchise Disclosure Document, the term "then-current," when applied to the Franchise Disclosure Document and Area Development Agreement, refers to the form of these documents that Amorino is providing to prospective franchisees or area developers at the time the company decides to undertake additional development in the Area Development Territory.
If Amorino is not actively providing a specific form to new franchisees or area developers at that moment, "then-current" means the form that Amorino, at its sole discretion, selects from those previously delivered to and executed by a franchisee of the company. This ensures that there is always a relevant and applicable version of these documents in use, even if the standard forms are updated frequently or infrequently.
This definition is important for area developers because the terms of the new area development agreement may vary substantially from the original agreement, with some exceptions related to initial franchise fee discounts and the requirement to pay another Area Development Franchise Fee. The new agreement will also reflect the area developer's new development obligations based on Amorino's plans for additional development. Area Developers must execute the new Area Development Agreement within thirty (30) days after receiving the Franchise Disclosure Document.