Under what circumstances is Amorino not liable to the Area Developer for consequential damages?
Amorino Franchise · 2025 FDDAnswer from 2025 FDD Document
Company shall not be liable to Area Developer for any consequential damages, including but not limited to lost profits, interest expense, increased construction or occupancy costs, or other costs and expenses incurred by Area Developer by reason of any delay in the delivery of Company's Franchise Disclosure Document or legal incapacity during the Term.
Source: Item 22 — CONTRACTS (FDD pages 80–81)
What This Means (2025 FDD)
According to Amorino's 2025 Franchise Disclosure Document, Amorino is not liable to the Area Developer for any consequential damages under specific circumstances. These circumstances include delays in delivering the Franchise Disclosure Document or legal incapacity during the term of the Area Development Agreement.
Specifically, Amorino will not be responsible for consequential damages such as lost profits, interest expenses, or increased construction or occupancy costs that the Area Developer might incur due to these delays or legal issues. This means that if the Area Developer experiences financial losses or increased expenses as a result of these situations, they will not be able to recover those losses from Amorino.
This provision protects Amorino from potentially significant financial liabilities that could arise from circumstances beyond its direct control. For a prospective Area Developer, this highlights the importance of carefully assessing the risks associated with delays and legal issues, as they will bear the financial burden of any consequential damages resulting from these events. It is advisable for potential franchisees to seek legal counsel to fully understand the implications of this clause and to explore options for mitigating these risks.