Does the Amorino franchise agreement allow Amorino to affiliate itself with an existing competitive franchise network?
Amorino Franchise · 2025 FDDAnswer 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.
Source: Item 22 — CONTRACTS (FDD pages 80–81)
What This Means (2025 FDD)
Based on the 2025 Amorino Franchise Disclosure Document, the franchise agreement includes clauses related to non-competition, which suggests that Amorino aims to prevent franchisees (and related parties) from engaging with competing businesses. Specifically, during the term of the franchise agreement (and for two years after), franchisees and related parties are restricted from owning, operating, or being involved with any business that produces or sells gelato or similar products, except for another Amorino store. This restriction applies within the United States, its territories, and other regions where Amorino operates or has registered its trademarks.
This non-compete clause indicates that Amorino seeks to protect its brand and market position by limiting franchisees' ability to associate with competing businesses. The clause extends beyond the immediate term of the agreement, which could impact a franchisee's future business ventures after their franchise agreement expires or is terminated. The geographical scope of the non-compete is also broad, covering areas where Amorino currently operates or intends to operate.
While the FDD excerpts do not explicitly state whether Amorino can affiliate with a competitive franchise network, the presence of a strict non-compete clause for franchisees suggests that Amorino would likely avoid affiliations that directly compete with its existing franchise network. Such affiliations could potentially undermine the value and exclusivity of the Amorino franchise for current franchisees. A prospective franchisee should seek clarification from Amorino regarding its policies on affiliations with competitive networks to fully understand any potential conflicts of interest.
Therefore, while the provided FDD excerpts do not directly address Amorino's ability to affiliate with a competitive franchise network, the strong non-compete provisions imposed on franchisees suggest that such an affiliation is unlikely. A potential franchisee should directly ask Amorino about this to get a clear answer.