Can Amorino grant franchise rights for businesses operating under trademarks different from 'Amorino'?
Amorino Franchise · 2025 FDDAnswer from 2025 FDD Document
Nothing in this Agreement prohibits or restricts Amorino from (a) owning, acquiring, establishing, operating, or granting franchise rights for one or more other businesses under a different trademark or service mark (i.e., a mark other than Amorino).
Source: Item 22 — CONTRACTS (FDD pages 80–81)
What This Means (2025 FDD)
According to the 2025 Amorino FDD, Amorino retains the right to grant franchise rights for businesses operating under different trademarks or service marks. Specifically, Amorino is not restricted from "owning, acquiring, establishing, operating, or granting franchise rights for one or more other businesses under a different trademark or service mark (i.e., a mark other than Amorino)." This means that Amorino can operate or franchise other concepts that are not branded as Amorino.
This reservation of rights allows Amorino to diversify its business interests and potentially compete with its own franchisees through different brands. While franchisees are granted a protected area where Amorino will not operate or franchise another Amorino store, this protection does not extend to other brands or concepts that Amorino may develop or acquire.
For a prospective franchisee, this clause highlights a potential risk. Amorino could introduce a competing brand in the same market, potentially drawing customers away from the Amorino franchise. It is important for potential franchisees to understand that their exclusivity is limited to the Amorino brand and does not prevent Amorino from engaging in similar businesses under different names. Franchisees should consider this factor when evaluating the potential market and competition in their protected area.