Under what conditions can Amorino assign the franchise agreement to another party?
Amorino Franchise · 2025 FDDAnswer from 2025 FDD Document
| Franchisee' i. s obligations on termination/non -renewal | Sections 17 and 18.D of the franchise agreement | Immediately cease operating the Store, cease use of franchise system and Proprietary Marks, cancel assumed or equivalent name registrations containing the Proprietary Marks or the name "Amorino", cease to use and at our option, assign to us your rights to telephone numbers, email addresses, internet websites or webpages, make certain necessary modifications to premises and de-identify the premises completely of any association with Amorino, hide all physical aspects of the brand inside and outside the premises. In particular, any visible signage, recognizable artwork or decor must be dismantled, return any proprietary information relating to the franchised business, and comply with all post termination covenants (such as covenant not to compete) set forth in franchise agreement. |
|---|---|---|
| Assign j. ment of contract by franchisor | Section 15.A of the franchise agreement | No restrictions on our right to assign, provided the assignee is capable of performing and assumes our obligations under the franchise agreement. |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER, AND DISPUTE RESOLUTION (FDD pages 55–67)
What This Means (2025 FDD)
According to Amorino's 2025 Franchise Disclosure Document, Amorino has the right to assign the franchise agreement to another party without restrictions, provided that the assignee is capable of performing Amorino's obligations under the agreement and assumes those obligations. This is detailed in Section 15.A of the franchise agreement.
This means that Amorino can transfer its rights and responsibilities to a new entity if they believe that the new entity can properly manage the franchise system. For a prospective franchisee, this implies that the entity they initially contracted with might change during the term of their franchise agreement. However, the new entity must take on all of Amorino's responsibilities, ensuring the franchisee's rights are maintained.
This type of clause is relatively standard in franchising, allowing franchisors flexibility in structuring their business. However, it's important for franchisees to understand that the support and resources they receive could potentially come from a different company than they initially expected. While the new assignee is obligated to fulfill the original agreement, a franchisee might want to investigate the capabilities and reputation of any potential future assignees if such a change occurs.