Under what condition will Amorino notify the area developer of its determination to develop additional territories?
Amorino Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section in Area Development Agreement | Summary (Area Development Agreement) |
|---|---|---|
| Length a. of the franchise term | Section 4.1 of the area development agreement | The term commences on the effective date of the Area Development Agreement and, unless sooner terminated or extended, continues for a period of five years. |
| Renewa b. l or extension of the term | Section 4.2 and 4.3 of the area development agreement | Within 60 days before the end of the term, if we shall determine that further development of your territory is desirable, we will notify you in writing of our determination to develop additional |
Amorino Unit Franchise Disclosure Document –April 24, 2025 Page 60 of 80
| Require c. ments for franchisee to renew or extend | Section 4.5 of the area development agreement | Renewal means the right to open additional locations in your designated area development territory. To obtain the right to additional development, you must meet the following requirements: (a) you must have fully performed all of your obligations under the area development agreement and all other agreements between you and us; (b) you must have demonstrated to us your financial capacity to perform the additional development obligations in the new area development agreement; (c) at expiration of the term, you must continue to operate in your territory, not less than the aggregate number of stores required by the minimum development obligation as set forth in the area development agreement; (d) you must sign our then-current form of area development agreement, which may contain materially different terms than our current area development agreement, and (e) you shall not have already received the right to enter into two additional five-year development |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER, AND DISPUTE RESOLUTION (FDD pages 55–67)
What This Means (2025 FDD)
Based on the 2025 Amorino Franchise Disclosure Document, the document does not explicitly state under what specific conditions Amorino will notify an area developer of its determination to develop additional territories. However, the FDD does outline the requirements for an area developer to obtain the right to additional development, which implies a process where the developer seeks approval for further expansion.
Specifically, Section 4.5 of the area development agreement, as referenced in Item 17, details the requirements an area developer must meet to gain the right to open additional locations within their designated territory. These requirements include full performance of all obligations under existing agreements, demonstrating financial capacity for further development, maintaining the required number of operating stores, signing the then-current area development agreement, and not having already received the right to enter into two additional five-year development terms.
Therefore, while the FDD does not describe Amorino proactively notifying developers about new territory development opportunities, it does provide a framework for developers to request and potentially be granted the right to expand their territory, subject to meeting certain conditions and Amorino's approval. A prospective franchisee should inquire with Amorino about the specific process and criteria used to evaluate requests for additional territory development.