Are there any restrictions on Amorino's right to assign the franchise agreement?
Amorino Franchise · 2025 FDDAnswer from 2025 FDD Document
| Franchisee' i. s obligations on termination/non -renewal | Sections 17 and 18.D of the franchise agreement | Immediately cease operating the Store, cease use of franchise system and Proprietary Marks, cancel assumed or equivalent name registrations containing the Proprietary Marks or the name "Amorino", cease to use and at our option, assign to us your rights to telephone numbers, email addresses, internet websites or webpages, make certain necessary modifications to premises and de-identify the premises completely of any association with Amorino, hide all physical aspects of the brand inside and outside the premises. In particular, any visible signage, recognizable artwork or decor must be dismantled, return any proprietary information relating to the franchised business, and comply with all post termination covenants (such as covenant not to compete) set forth in franchise agreement. |
|---|---|---|
| Assign j. ment of contract by franchisor | Section 15.A of the franchise agreement | No restrictions on our right to assign, provided the assignee is capable of performing and assumes our obligations under the franchise agreement. |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER, AND DISPUTE RESOLUTION (FDD pages 55–67)
What This Means (2025 FDD)
According to Amorino's 2025 Franchise Disclosure Document, Amorino has the right to assign the franchise agreement. Specifically, there are no restrictions on Amorino's right to assign the agreement as long as the assignee is capable of performing and assumes Amorino's obligations under the franchise agreement. This is a fairly standard clause in franchise agreements, allowing the franchisor flexibility in its business operations.
For a prospective franchisee, this means that the agreement they sign with Amorino could be transferred to another entity. This new entity would then be responsible for upholding the franchisor's obligations outlined in the agreement. While this might seem concerning, the stipulation that the assignee must be capable of performing and assume the obligations provides some assurance that the new franchisor will be able to support the franchise system.
It is important for franchisees to understand this clause, as it means the relationship they initially establish with Amorino could change. However, the requirement that the assignee assumes all obligations aims to protect the franchisee's interests and ensure the continuity of the franchise agreement. Franchisees should carefully review Section 15.A of the franchise agreement to fully understand their rights and Amorino's obligations in the event of an assignment.