factual

What is the definition of 'Affiliate' in the context of the Amorino Franchise Agreement's non-compete clause?

Amorino Franchise · 2025 FDD

Answer from 2025 FDD Document

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.

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

What This Means (2025 FDD)

Based on the 2025 Amorino Franchise Disclosure Document, the term "Affiliate" is relevant within the context of non-compete clauses, particularly concerning who a franchisee or their principals and managers are restricted from employing or being associated with. Specifically, the non-compete agreement prevents franchisees and related parties from employing anyone who has been employed by Amorino or an Affiliate of Amorino as a salaried managerial employee within the previous 30 days. This restriction aims to prevent the poaching of skilled employees who possess knowledge of Amorino's operational systems and confidential information.

Additionally, the FDD states that substantially all services as the franchisor are provided by the Parent and Amorino Trading, LLC (the "Affiliate", an affiliated company under common control). This indicates that Amorino Trading, LLC, is considered an affiliate due to its common control and provision of services to the franchisor.

For a prospective franchisee, this definition is crucial because it broadens the scope of the non-compete obligations. It means that not only are they restricted from employing former employees of Amorino itself, but also those of its Affiliates, such as Amorino Trading, LLC. This is designed to protect Amorino's business interests by preventing competitors from gaining access to its expertise and personnel through the hiring of individuals connected to the Amorino network. Franchisees should be aware of these restrictions and ensure compliance to avoid potential legal repercussions.

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.