What is the Amorino transfer fee?
Amorino Franchise · 2025 FDDAnswer from 2025 FDD Document
F. Transfer Fee. In connection with a transfer of the Franchised Business, you must pay the applicable transfer fee in accordance with Section 15.
(10) You or the transferee shall have paid the amount specified as the "Transfer Fee" in the Data Sheet plus the reimbursement of our reasonable costs and expenses incurred in connection with the transfer (including legal fees), including our costs to obtain background checks on the transferee and its Principals.
You agree that you shall reimburse us for our reasonable costs and expenses (including legal fees) incurred in connection with the transfer even if the transfer is not ultimately completed.
- (7) You shall have paid the transfer fee in the amount set forth in the Data Sheet plus the reimbursement of our reasonable costs and expenses (including legal fees) incurred in facilitating the transfer.
Source: Item 22 — CONTRACTS (FDD pages 80–81)
What This Means (2025 FDD)
According to Amorino's 2025 Franchise Disclosure Document, a transfer fee is required when transferring a Franchised Business. The exact amount of the transfer fee is specified in the Data Sheet, along with reimbursement for Amorino's reasonable costs and expenses, including legal fees and background check costs for the transferee and its Principals. This reimbursement is required regardless of whether the transfer is ultimately completed.
In the event of a transfer, several conditions must be met. These include ensuring all monetary obligations to Amorino are current, compliance with all agreements, providing Amorino with a completed transfer disclosure form and proposed transfer agreements at least 30 days prior to the transfer, and ensuring the transferee meets Amorino's standards for education, management, business acumen, moral character, credit rating, and financial resources. The transferee must also execute Amorino's current franchise agreement, which may have different terms than the original agreement, and complete Amorino's initial training program.
If the transferee is a business entity, each principal and their spouse must provide a guaranty. Both the transferring franchisee and all owners must sign a reaffirmation of confidentiality and non-competition obligations with Amorino. The store must also comply with Amorino's current standards, or the transferee must present an acceptable remodeling plan. Failure to obtain Amorino's prior written consent for any transfer will render the transfer void and a material breach of the agreement.
For an individual franchisee transferring their interest to a business entity for convenience, a transfer fee is also required, as specified in the Data Sheet, along with reimbursement for reasonable costs and expenses. The business entity must be newly formed, with activities limited to operating the franchised business, and the franchisee must own and control 100% of the equity interest. The organizational documents of the business entity must state that the issuance and transfer of any securities are restricted by the terms of the agreement and cannot be amended without Amorino's prior written consent.