What financial obligation does a former Amorino franchisee have to Amorino and its affiliates after termination?
Amorino Franchise · 2025 FDDAnswer from 2025 FDD Document
hised Business, but may, in its sole discretion, condition such consent on satisfaction of any or all of the following:
- (1) All of your accrued monetary obligations to Amorino and its Affiliates, and all other outstanding obligations related to the Store shall be up to date, fully paid and satisfied.
- (2) You must be in full compliance with this Agreement and any other agreements between you and Amorino, its Affiliates and your suppliers.
Source: Item 22 — CONTRACTS (FDD pages 80–81)
What This Means (2025 FDD)
According to the 2025 Amorino Franchise Disclosure Document, a former franchisee has several financial obligations to Amorino and its affiliates post-termination. All accrued monetary obligations to Amorino and its affiliates must be up to date, fully paid, and satisfied. Additionally, the franchisee must comply with all covenants contained in the franchise agreement that survive termination or expiration.
Furthermore, if a former franchisee violates post-termination obligations, they may incur a delay fee of $500 per day for each day the violation continues. These post-termination obligations include ceasing operation of the store, refraining from representing oneself as a current franchisee, and discontinuing the use of signs, equipment, and materials associated with the Amorino brand.
In addition to monetary obligations, a former franchisee is subject to non-compete restrictions for two years following termination or expiration. This prevents them from engaging in businesses that produce or sell gelato or similar products within specific geographic areas, including the former location, the former protected area, or within a three-mile radius of any other Amorino store. These obligations are tolled during any period of noncompliance, meaning the clock stops on the two-year period while the franchisee is in violation.
These post-termination obligations are typical in franchising to protect the brand and prevent unfair competition. Prospective Amorino franchisees should carefully review these obligations to understand their responsibilities and potential financial implications after the franchise agreement ends.