Does the Amorino Area Development Agreement address non-competition after the term of the agreement?
Amorino Franchise · 2025 FDDAnswer from 2025 FDD Document
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 operat
Source: Item 22 — CONTRACTS (FDD pages 80–81)
What This Means (2025 FDD)
According to Amorino's 2025 Franchise Disclosure Document, the Area Development Agreement includes post-term non-competition clauses. Specifically, for a period of two years after the agreement's expiration or termination, the Area Developer and its principals are restricted from engaging in any business that involves the production or sale of ice cream products similar to those offered by Amorino.
The restrictions apply within the locations of the former stores, the former protected area of the stores (or within a three-mile radius if there was no protected area), or within a three-mile radius of any other Amorino store operating under the Amorino system. These obligations will be suspended during any period of noncompliance.
In addition, principals and managers of the Area Developer must sign a confidentiality and non-competition agreement. Amorino retains the right to modify the scope of these non-compete covenants, making it crucial for potential franchisees to fully understand these limitations and their implications for future business ventures after the franchise term concludes.