Is an Amorino franchisee allowed to invest in a business that sells gelato if it is not an Amorino franchise?
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)
According to Amorino's 2025 Franchise Disclosure Document, a franchisee is generally prohibited from investing in a competing gelato business. During the term of the franchise agreement, the franchisee cannot own, maintain, advise, operate, engage in, be employed by, make loans to, invest in, provide assistance to, or have any interest in a business that produces or sells gelato or other products offered by Amorino stores. The only exception is if the franchisee owns an Amorino Store operated under a current franchise agreement with Amorino. This restriction applies to any location within the United States and other regions where Amorino or its affiliates operate or have registered their trademarks.
This non-compete clause extends beyond the immediate location of the Amorino store. It covers the former protected area of the store or, if there was no protected area, a three-mile radius around the store. It also includes a three-mile radius of any other Amorino store in existence or under development. This broad geographic scope means that a franchisee's ability to invest in another gelato business is significantly limited in areas where Amorino has a presence.
After the franchise agreement expires or terminates, the non-compete restrictions continue for a period of two years. This prevents a former franchisee from immediately leveraging their experience and knowledge gained from Amorino to benefit a competing business. However, Amorino may provide written approval to waive these restrictions, allowing a franchisee to engage with another gelato business if Amorino consents. This provision gives Amorino some flexibility to consider individual circumstances and potentially allow certain investments or activities that would otherwise be prohibited.