When transferring an Amorino franchise, what obligations must the transferor and all owners reaffirm?

According to Amorino's 2025 Franchise Disclosure Document, when transferring an Amorino franchise, both the transferor and all owners must sign a reaffirmation of all obligations of confidentiality and obligations restricting competition with Amorino. This requirement ensures that even after the franchise changes hands, the original franchisee and owners remain bound by the terms that protect Amorino's proprietary information and competitive position.

This obligation is a standard practice in franchising to maintain brand consistency and protect the franchisor's interests. Confidentiality is crucial to prevent trade secrets or operational details from falling into the hands of competitors. The non-compete agreement ensures that the former franchisee does not use their experience and knowledge gained from operating an Amorino franchise to start a competing business nearby, which could directly harm the existing Amorino franchise network.

For a prospective franchisee, this means that even after selling their Amorino franchise, they and their owners will continue to be legally bound by confidentiality and non-compete clauses. This could limit their future business ventures, particularly in the same industry or geographical area. It is important for franchisees to fully understand the scope and duration of these obligations before transferring their franchise to avoid potential legal issues down the line.