What geographic areas are covered by the non-compete clause during the term of the Amorino Franchise Agreement?
Amorino Franchise · 2025 FDDAnswer from 2025 FDD Document
approved in writing by Amorino, you and, if applicable, such Principal, shall not, either directly or indirectly, for yourselves, 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 at any location within the United States, its territories or commonwealths, or any other country, province, state or geographic area in which Amorino or its Affiliates have used, sought registration of or registered the Proprietary Marks or similar marks or operate or license others to
Source: Item 22 — CONTRACTS (FDD pages 80–81)
What This Means (2025 FDD)
According to Amorino's 2025 Franchise Disclosure Document, during the term of the franchise agreement, a franchisee is restricted from engaging in competitive business activities within specific geographic areas. This non-compete obligation applies to the United States, its territories and commonwealths, or any other country, province, state or geographic area in which Amorino or its Affiliates have used, sought registration of or registered the Proprietary Marks or similar marks or operate or license others to.
Specifically, the franchisee cannot own, maintain, advise, operate, engage in, be employed by, make loans to, invest in, provide any assistance to, or have any interest in any business involved in the production or retail/wholesale sale of gelato, ice cream, or other products/services offered by Amorino stores. This restriction applies to any location within the specified geographic areas where Amorino or its affiliates have proprietary marks, excluding another Amorino store operated under a current franchise agreement.
This non-compete clause aims to protect Amorino's market position, brand reputation, and customer relationships by preventing franchisees from directly competing with the Amorino system during the term of their agreement. The clause is designed to prevent franchisees from using Amorino's confidential information and business practices to unfairly compete with the brand. Prospective franchisees should carefully consider the scope and limitations of this non-compete provision, as it could impact their ability to engage in similar business ventures, even passively, during their time as an Amorino franchisee.