Where in the Amorino addendum will the protected area be defined?
Amorino Franchise · 2025 FDDAnswer from 2025 FDD Document
- (1) Amorino grants to you the exclusive right to operate the Franchised Business at the Franchised Location in the territory to be identified as the "Protected Area" in an addendum substantially similar to the Form of Addendum (the "Protected Area"). The territory identified in such addendum as the "Protected Area" shall be the "Protected Area" for all purposes under this Agreement. During the term of this Agreement, Amorino shall not own or operate, or license or grant anyone else the right to own or operate, an Amorino Store, kiosk outlet, mobile outlet or other retail outlet under the Proprietary Marks within the Protected Area.
- (2) You acknowledge and agree that the franchise granted to you under this Agreement is nonexclusive outside of the Protected Area and that you may not operate in any way or sell any Proprietary Products or other Amorino Goods and Services outside the Protected Area if the area is reserved exclusively by Amorino or by another franchisee or such sale is otherwise in violation of this Agreement.
- (3) You further acknowledge that exclusivity of the Protected Area can be revoked upon the occurrence of any of the events which would give rise to our right to terminate this Agreement and your franchise as set forth in Section 16 of this Agreement.
Source: Item 22 — CONTRACTS (FDD pages 80–81)
What This Means (2025 FDD)
According to the 2025 Amorino FDD, the specific territory granted to the franchisee as a protected area will be detailed in an addendum. This addendum, which will be substantially similar to the Form of Addendum, will explicitly identify the boundaries of the "Protected Area." Amorino commits not to operate or license others to operate an Amorino store, kiosk, mobile outlet, or any other retail outlet under its trademarks within this defined Protected Area during the agreement's term.
However, the franchise agreement clarifies that outside the Protected Area, the franchisee's rights are non-exclusive. This means Amorino retains the right to operate or franchise other businesses outside the franchisee's protected territory. The franchisee is restricted from operating or selling Amorino products outside their Protected Area if that area is reserved by Amorino or another franchisee, or if such sales violate the agreement.
It's important to note that the exclusivity of the Protected Area is not guaranteed for the entire term. Amorino reserves the right to revoke the exclusivity if events occur that would allow them to terminate the agreement and the franchise, as outlined in Section 16 of the agreement. This could include breaches of contract or failure to meet performance standards. Therefore, prospective franchisees should carefully review the terms of the addendum and Section 16 to understand the specific conditions under which their protected territory could be impacted.