What actions related to product sourcing are prohibited for an Amorino franchisee?
Amorino Franchise · 2025 FDDAnswer from 2025 FDD Document
| Non r. competition covenants after the franchise is | Section 18.D of the franchise agreement | During a two-year uninterrupted period after the expiration or termination, neither you, nor any officer, director, shareholder or general partner or limited partner of a corporate or partnership franchisee, shall: |
|---|---|---|
| terminated or expires | (1) Divert or attempt to divert any present or prospective customer or supplier of any Amorino Store to any competitor, by direct or indirect inducement or otherwise, or do or perform, directly or indirectly, any other act injurious or prejudicial to the goodwill associated with the proprietary marks and the system. | |
| (2) Employ or seek to employ any person who is or has been | ||
| within the previous 30 days employed by Amorino or an | ||
| Affiliate of Amorino as a salaried managerial employee, or | ||
| otherwise directly or indirectly induce such person to leave his | ||
| or her employment. | ||
| (3) Own, maintain, advise, operate, engage in, be employed | ||
| by, make loans to, invest in, provide any assistance to, or have | ||
| any interest in (as owner or otherwise) or relationship or | ||
| association with, any business that engages in the production | ||
| or sale at retail or wholesale of gelato or other ice cream | ||
| maintenance, and any other products or services offered by | ||
| your Store or proposed to be offered by your Store or offered | ||
| by Amorino stores, at any location within the United States, | ||
| its territories or commonwealths, or any other country, | ||
| province, state or geographic area that (i) is, or is intended to | ||
| be, located at the acquisition of any of your former stores; (ii) | ||
| within the former protected area of any of your stores (or, if | ||
| there was no protected area, | ||
| within a three-mile radius of the | ||
| store); (iii) within a three-mile radius of any other store | ||
| operating under the system and proprietary marks in existence | ||
| or under development at the time of such expiration, | ||
| termination or transfer; or (iv) anywhere within your former | ||
| territory. |
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, after the franchise agreement expires or is terminated, the franchisee is restricted from certain activities that could harm the Amorino brand. Specifically, they cannot divert or attempt to divert any present or prospective customer or supplier of any Amorino store to a competitor. This includes any direct or indirect actions that could be injurious or prejudicial to the goodwill associated with Amorino's proprietary marks and the system.
Additionally, the franchisee is prohibited from engaging in certain employment-related activities. They cannot employ or seek to employ anyone who is or has been employed by Amorino or an affiliate as a salaried managerial employee within the previous 30 days. They are also barred from indirectly or directly inducing such a person to leave their employment.
Furthermore, the franchisee is restricted from participating in or having any association with any business that produces or sells gelato, ice cream, or any other products or services offered by Amorino stores. This restriction applies to owning, maintaining, advising, operating, being employed by, making loans to, investing in, providing assistance to, or having any interest in such a business. The geographic scope of this restriction includes locations at the acquisition of any of the franchisee's former stores, within the former protected area of any of their stores (or within a three-mile radius if there was no protected area), within a three-mile radius of any other store operating under the Amorino system, or anywhere within the franchisee's former territory. These restrictions are in place for a two-year period after the franchise expires or is terminated.