factual

Does Amorino allow for any exceptions to the non-compete agreement, and if so, what is the process for obtaining approval?

Amorino Franchise · 2025 FDD

Answer from 2025 FDD Document

oprietary to us and that it may not be used except under a franchise agreement with Franchisor.

2. NONCOMPETITION AND NON-SOLICITATION

Covenantor agree that during the term of Covenant's employment with and/or ownership of Franchisee (and for a two (2) year uninterrupted period following the termination or expiration of such employment and ownership for any reason), except as otherwise approved in writing by Amorino, Covenantor shall not, either directly or indirectly, for himself/herself, or through, on behalf of, or in conjunction with any person, or legal entity:

  • (1) Divert or attempt to divert any present or prospective customer or supplier of the Franchised Business 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 similar Amorino Stores, other than a Amorino Store operated pursuant to a then-currently effective franchise agreement with Amorino. 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 the former Franchised Business; (ii) within the former Protected Area of the Store (or, if there was no protected area, within a three-mile radius of the Store); or (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. The obligations described in this Section shall be tolled during any period of noncompliance.

This Section will not apply to any ownership by you of less than a two percent (2%) beneficial interest in the outstanding equity securities of any publicly held corporation.

3. INJUNCTIVE RELIEF.

Covenantor agrees that a breach of this Agreement will cause irreparable injury to Franchisee and Franchisor, and entitles Franchisee and Franchisor to an order of specific performance and/or a temporary, preliminary or permanent injunction, without bond, from a court or agency of competent jurisdiction, court costs, reasonable expenses of litigation, reasonable attorney's fees, and any other appropriate relief. Covenantor agrees that his or her only remedy if an injunction is entered against you will be the dissolution of that injunction, if warranted, upon due hearing, and expressly waive all claims for damages caused by the wrongful issuance of any injunction.

4. COSTS AND ATTORNEYS' FEES.

If Franchisor or Franchisee engages legal counsel in connection with any failure by Covenantor to comply with this Agreement, Covenantor shall reimburse Franchisor and/or Franchisee, as applicable, their reasonable attorneys' fees whether incurred before, during or after any trial, arbitration or appeal.

Source: Item 22 — CONTRACTS (FDD pages 80–81)

What This Means (2025 FDD)

According to Amorino's 2025 Franchise Disclosure Document, the non-compete agreement has exceptions that require written approval from Amorino. During the term of the franchise agreement, franchisees and their principals are restricted from engaging in competitive activities unless Amorino provides written approval. This includes diverting customers or suppliers, employing Amorino's or its affiliates' employees, and owning or being involved with businesses that sell gelato or similar products, except for another Amorino store under a franchise agreement.

After the termination or expiration of the franchise, the non-compete restrictions extend for two years. These restrictions apply within the United States, its territories, and other geographic areas where Amorino operates or intends to operate. The restrictions are specifically applicable at the former franchised business location, within the former protected area (or a three-mile radius if no protected area existed), or within a three-mile radius of any other Amorino store.

Additionally, the franchisor has the right to reduce the scope of any covenant set forth in Section 18, or any portion thereof, without your consent or the consent of any Principal, effective immediately upon delivery of written notice to the affected party; and you and each Principal agree that such person shall comply forthwith with any covenant as so modified. The non-compete agreement does not apply to ownership of less than a 5% beneficial interest in the outstanding equity securities of any company registered under the Securities Act of 1933 or the Securities Exchange Act of 1934.

Prospective franchisees should seek clarification from Amorino regarding the specific process and criteria for obtaining written approval for any exceptions to the non-compete agreement. Understanding these conditions is crucial for franchisees who may have existing business interests or future plans that could potentially conflict with the non-compete provisions.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.