Under what conditions does Amorino require a general release from the franchisee or their owners?

According to Amorino's 2025 Franchise Disclosure Document, a general release is required from the franchisee and their principals under specific conditions related to the transfer of the franchise. Specifically, if a franchisee seeks to transfer their interest in the Franchised Business to another party, Amorino may require that the franchisee and their principals execute a general release.

This release, in a form satisfactory to Amorino, must cover any and all claims against Amorino and its affiliates, including their officers, directors, shareholders, members, equity holders, agents, and employees, in both their corporate/company and individual capacities. The claims include those arising under federal, state, and local laws, rules, and ordinances. However, the release will not be inconsistent with any state law regulating franchising.

This requirement ensures that Amorino is protected from potential future claims by the outgoing franchisee or their principals related to the franchise agreement or the operation of the business up to the point of transfer. It is a fairly standard practice in franchising to include such a release to provide a clean break and avoid future legal disputes. A prospective franchisee should carefully review the release and understand its implications before agreeing to transfer the franchise.