Are there any financial thresholds specified in the Amorino Collateral Assignment of Lease that trigger certain actions?
Amorino Franchise · 2025 FDDAnswer from 2025 FDD Document
The undersigned Landlord under the Lease hereby:
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- Agrees to notify Franchisor in writing of any default and any failure of Franchisee to cure any default under the Lease;
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- Agrees that Franchisor shall have the right, but not be obligated, to cure any default by Franchisee under the Lease within 30 days after delivery by Lessor of written notice thereof;
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- Consents to the foregoing Collateral Lease Assignment and agrees that if Franchisor takes possession of the Premises and confirms to Landlord the assumption of the Lease by Franchisor as tenant, Landlord shall recognize Franchisor, or its designee, as tenant under the Lease;
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- Agrees that Franchisor may further assign the Lease or sublet the Premises to a designee and/or a person or entity who is an Amorino franchise owner reasonably acceptable to Landlord. Franchisor will have no further liability under the Lease upon such an assignment. This Approval of Landlord shall apply to any subsequent Amorino franchise owner;
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- Agrees to provide a copy of this Collateral Lease Assignment to any actual and/or prospective purchaser of the Premises.
Source: Item 22 — CONTRACTS (FDD pages 80–81)
What This Means (2025 FDD)
Based on the 2025 Amorino Franchise Disclosure Document, the Collateral Assignment of Lease outlines specific rights and obligations for Amorino, the franchisee, and the landlord, but it does not specify financial thresholds that trigger particular actions.
However, the document does state that the landlord agrees to notify Amorino in writing of any default and any failure of the franchisee to cure any default under the lease. Amorino then has the right, but not the obligation, to cure any default by the franchisee under the lease within 30 days after receiving written notice from the lessor. Additionally, Amorino has the right to take possession of the premises and operate the franchised business without needing the landlord's consent if the franchisee defaults under the lease or the Franchise Agreement expires or terminates.
While no specific financial thresholds are mentioned, the agreement ensures Amorino can protect its brand and operational standards by stepping in to address defaults or assume the lease if necessary. Prospective franchisees should carefully review the entire lease agreement and collateral assignment to understand all conditions and potential liabilities.