Is the franchise granted to an Amorino franchisee exclusive outside of the Protected Area?
Amorino Franchise · 2025 FDDAnswer from 2025 FDD Document
morino Store, kiosk outlet, mobile outlet or other retail outlet under the Proprietary Marks within the Protected Area.
- (2) You acknowledge and agree that the franchise granted to you under this Agreement is nonexclusive outside of the Protected Area and that you may not operate in any way or sell any Proprietary Products or other Amorino Goods and Services outside the Protected Area if the area is reserved exclusively by Amorino or by another franchisee or such sale is otherwise in violation of this Agreement.
- (3) You further acknowledge that exclusivity of the Protected Area can be revoked upon the occurrence of any of the events which would give rise to our right to terminate this Agreement and your franchise as set forth in Section 16 of this Agreement.
- C. Reservation of Rights. Amorino retains and reserves to itself all other rights in and to the Proprietary Marks including the exclusive right to own and operate, and to grant others the right to own and operate, Amorino stores, kiosks and mobile outlets outside the Protected Area, regardless of their proximity to the Protected Area;
Source: Item 22 — CONTRACTS (FDD pages 80–81)
What This Means (2025 FDD)
According to Amorino's 2025 Franchise Disclosure Document, the franchise granted to a franchisee is nonexclusive outside of their Protected Area. Amorino retains the right to operate or license others to operate Amorino stores, kiosks, and mobile outlets outside of a franchisee's Protected Area, regardless of their proximity. They also reserve the right to distribute Proprietary Products and other Amorino Goods and Services through alternative channels of distribution such as grocery stores, supermarkets, convenience stores, specialty stores, restaurants, both within and outside the Protected Area, and via mail order, catalog sales and/or the Internet for delivery to customers, both within and outside the Protected Area.
This means that while franchisees have an exclusive territory, Amorino can still operate or franchise other locations outside that area, even if they are nearby. Amorino can also sell its products through other channels like grocery stores or online, which could compete with a franchisee's sales.
This lack of exclusivity outside the Protected Area is a common practice in franchising, allowing franchisors to expand their brand presence through various channels. However, prospective Amorino franchisees should carefully consider the potential impact of this non-exclusivity on their business, especially if they are located near other potential Amorino outlets or alternative distribution channels.