Under what circumstances can Amorino terminate the Area Developer Agreement without notice or opportunity to cure?
Amorino Franchise · 2025 FDDAnswer from 2025 FDD Document
This Agreement may be terminated by Company for cause without notice or opportunity to cure, except for such notice as may be required by law, in the event of any material breach by Area Developer of this Agreement. Material breach, as used herein, shall specifically include, among other things, the following:
- (a) Any attempt by Area Developer to sell, assign, transfer or encumber in whole or in part any or all rights and obligations under this Agreement, in violation of the terms of this Agreement, or without the written consents required, pursuant to this Agreement.
- (b) Failure of Area Developer to meet the Minimum Development Obligations within the Development Periods set forth herein. Time is of the essence.
Source: Item 22 — CONTRACTS (FDD pages 80–81)
What This Means (2025 FDD)
According to Amorino's 2025 Franchise Disclosure Document, Amorino can terminate the Area Developer Agreement for cause without notice or opportunity to cure, except for such notice as may be required by law, if the Area Developer materially breaches the agreement.
Specifically, material breaches include attempting to sell, assign, transfer, or encumber any rights or obligations under the agreement without written consent, or failing to meet the Minimum Development Obligations within the set Development Periods. Time is of the essence in meeting these obligations.
This means that an Area Developer must be very careful to adhere to the terms of the agreement regarding transfers and development schedules. Failure to do so could result in immediate termination of the agreement by Amorino, potentially leading to a significant loss of investment and future revenue opportunities for the Area Developer.