Under what circumstances can Amorino terminate the franchise agreement with immediate effect?
Amorino Franchise · 2025 FDDAnswer from 2025 FDD Document
tive days or more, other than in the case of an agreed-upon period of closure or as a result of a Force Majeure Event);
- (11) Any Approval required to operate the Franchised Business is revoked, terminated or otherwise lost unless the required approval is reinstated within a reasonable time.;
- (12) If the term of your lease expires or if your right to possession of your Amorino premises is otherwise lost without you being at fault, we will not terminate this Agreement as long as you relocate and reopen your Amorino store within 180 days from the date on which your prior lease terminated. The provisions of this Agreement will apply to the location, lease and design approval, equipping and other features of your relocated Amorino facility and the term of this Agreement will be extended by the amount of time between the termination of your prior lease and the opening of your relocated facility;
- (13) you or any Principal or Manager is convicted of, or pleads guilty or no contest to, a felony, a crime involving moral turpitude, or any other crime or offense that Amorino believes is reasonably likely to have an adverse effect on the Franchised Business, System, Proprietary Marks, or reputation of Amorino;
- (14) there is any transfer or attempted transfer in violation of Section 15;
- (15) you, or any of your Principals or Affiliates, challenge our right or the right of any of our Affiliates to use, or license others to use, the System, the Proprietary Marks, the Copyrighted Materials, or any part thereof;
- (16) you or any Principal fails to comply with the confidentiality or
noncompete covenants in Section of this Agreement;
- (17) you or any Principal provide us with any false or misleading information or make any material misrepresentation in connection with your franchise application or at any time during the term of this Agreement;
Source: Item 22 — CONTRACTS (FDD pages 80–81)
What This Means (2025 FDD)
According to the 2025 Amorino Franchise Disclosure Document, Amorino can terminate the franchise agreement with immediate effect under several circumstances. These include situations where the franchisee sells unauthorized products, experiences loss of required operational approvals, is convicted of certain crimes, attempts unauthorized transfers of the franchise, challenges Amorino's rights to use its system or trademarks, breaches confidentiality or non-compete agreements, provides false information, maintains false records, or fails to make payments. Additionally, repeated breaches of the franchise agreement, even if cured, can lead to immediate termination.
Specifically, if a franchisee sells gelato, sorbet, gelato macarons, or restricted dry goods from unapproved suppliers, Amorino can terminate the agreement immediately. Similarly, if any approval required to operate the franchised business is revoked and not reinstated within a reasonable time, Amorino has grounds for immediate termination. Conviction of a felony or a crime involving moral turpitude by the franchisee, a principal, or a manager also allows Amorino to terminate the agreement immediately if Amorino believes it could negatively impact the business or brand reputation.
Furthermore, Amorino can terminate the agreement immediately if the franchisee or their principals challenge Amorino's rights to the System, Proprietary Marks, or Copyrighted Materials. Breaching confidentiality or noncompete covenants also constitutes grounds for immediate termination. Providing false or misleading information, maintaining false books or records, or failing to make payments to Amorino or its affiliates when due are additional reasons for immediate termination. Finally, if a franchisee has three or more breaches of a similar nature of any terms and conditions of the Agreement within a twelve-month period, even if these breaches are cured, Amorino can terminate the agreement immediately.
These termination rights are designed to protect the Amorino brand and ensure compliance with the franchise agreement. A prospective franchisee should carefully review these conditions to understand their obligations and the potential consequences of non-compliance. Understanding these terms is crucial for maintaining a successful and compliant Amorino franchise.