How does Amorino describe the Area Development Territory?
Amorino Franchise · 2025 FDDAnswer from 2025 FDD Document
rein, and the recitals which are incorporated herein, the parties hereby agree as follows:
I. GRANT OF AREA DEVELOPMENT FRANCHISE
1.1 Grant of Area Development Franchise
Company hereby grants to Area Developer, and Area Developer hereby accepts, the exclusive right, during the term hereof, to develop Stores in the Area Development Territory more fully described in Schedule "A" which is annexed hereto and by this reference made a part hereof (the "Area Development Territory"), upon the terms and subject to the conditions of this Agreement.
II. AREA DEVELOPER'S DEVELOPMENT SCHEDULE OBLIGATION
2.1 Minimum Development Obligation
Area Developer hereby agrees to construct, equip, open and thereafter continue to operate within the Area Development Territory the number and types of Stores set forth in Schedule "A," which is annexed hereto and by this reference made a part hereof, within each of the time periods set forth in Schedule A (hereafter the "Minimum Development Obligation"). Time is of the essence.
2.2 Area Developer May Exceed Minimum Development Obligation
During the Term, Area Developer may, subject to the terms and conditions of this Agreement and the Franchise Agreements, construct, equip, open and operate more Stores in the Area Development Territory than required in the Minimum Development Obligation.
III. AREA DEVELOPMENT TERRITORY PROTECTION
3.1 Protection of Area Development Area
During the term of this Agreement, Company shall not operate or grant a franchise to any other person to operate a Franchised Business within the Area Development Territory.
3.2 Reservation of Rights.
Company, on behalf of itself and its affiliates, reserves the following sole and absolute right to:
- a) provide, franchise, license, sell, distribute and market any services or products (under any brand, including but not limited to our Proprietary Marks) through any channel or method of distribution, other than an Amorino Store located in your Area Development Territory, including, without limitation, through retail establishments or via the internet, whether inside or outside of your Area Development Territory;
- b) to establish and operate, and grant to others the right to establish and operate, Amorino Stores at locations anywhere outside the Area Development Territory, including locations near, on or adjacent to the Area Development Territory's boundaries;
- c) offer and sell to persons outside the Area Development Territory, using the Proprietary Marks, services and products that are the same as the services and products offered by Amorino Stores;
- d) in or outside the Area Development Territory, to offer and sell different services and products not offered within an Amorino Store, using the Proprietary Marks, without offering you the right to participate, however, we agree that services and products that are consistent with the types of products and services sold by the Stores and with the manner in which the Stores are operated, will be limited to sale through the Stores except for items designed for wholesale sale to different types of outlets such as prepackaged items to be sold in supermarkets and other product categories to be sold through unaffiliated retail outlets;
- e) acquire and continue to operate, directly or indirectly, any business operating under different trademarks in or outside the Area Development Territory;
Source: Item 22 — CONTRACTS (FDD pages 80–81)
What This Means (2025 FDD)
According to Amorino's 2025 Franchise Disclosure Document, the Area Development Territory grants the Area Developer the exclusive right to develop stores within a specific geographic area, as detailed in Schedule "A" of the Area Development Agreement. This right is granted for a specific term and is subject to the conditions outlined in the agreement. The Area Developer is obligated to construct, equip, open, and operate a certain number of stores within the Area Development Territory, as specified in Schedule A, within defined time periods. This is referred to as the Minimum Development Obligation.
Amorino will not operate or grant a franchise to anyone else to operate a Franchised Business within the Area Development Territory during the agreement's term. However, Amorino retains specific rights, including the ability to market services or products through other channels outside of Amorino stores in the Area Development Territory, establish Amorino stores outside the Area Development Territory, and offer franchises to individuals located outside the Area Development Territory.
The Area Developer has the option to exceed the Minimum Development Obligation and open more stores than required, subject to the terms and conditions of the Area Development Agreement and Franchise Agreements. The Area Development Territory Fee is paid by the Area Developer to Amorino upon execution of the agreement. This fee is calculated by adding the current initial franchise fee ($30,000) to one-half of the current initial franchise fee ($15,000) multiplied by the number of additional locations in the development schedule. For instance, an Area Development Agreement for five locations would require an initial area development fee of $90,000.
When the Area Developer signs a unit franchise agreement for each additional location, the $15,000 paid for each location as part of the initial Area Development Territory Fee will be credited towards the then-current initial franchise fee for that location. The Area Developer must then pay the difference between the current franchise fee and the $15,000 credit when signing the lease for that location.