What activities are prohibited under the post-term non-compete agreement with Amorino?
Amorino Franchise · 2025 FDDAnswer from 2025 FDD Document
ed by any of your Stores or proposed to be offered by any of your Stores or offered by Amorino Stores, anywhere, whether within or outside the Area Development Territory, unless Company shall consent thereto in writing.
8.2 Post-Term.
During a two-year uninterrupted period after the expiration or termination of this Agreement, for any reason, neither Area Developer, nor any officer, director, shareholder or general partner or limited partner of a corporate or partnership franchisee, shall:
- (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 products, 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 location 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 Area Development Territory.
Source: Item 22 — CONTRACTS (FDD pages 80–81)
What This Means (2025 FDD)
According to Amorino's 2025 Franchise Disclosure Document, after the franchise agreement expires or terminates, the franchisee is subject to a two-year non-compete agreement. This agreement restricts the franchisee (and their principals) from engaging in specific activities that could harm the Amorino brand.
Specifically, the franchisee cannot divert or attempt to divert customers or suppliers of any Amorino store to a competitor. They are also prohibited from employing or soliciting employees of Amorino or its affiliates who have been employed within the previous 30 days in a managerial role.
Furthermore, the franchisee is restricted from owning, operating, or being involved with any business that produces or sells gelato, ice cream, or other products/services offered by Amorino stores. This restriction applies to locations (i) at the site of the former franchised business, (ii) within the former protected area (or a three-mile radius if no protected area existed), (iii) within a three-mile radius of any other Amorino store, or (iv) anywhere within the former Area Development Territory. Non-compliance with these terms will result in the period of non-compliance being added to the end of the non-compete period.