What happens if an Amorino franchisee fails to comply with confidentiality or noncompete covenants?
Amorino Franchise · 2025 FDDAnswer from 2025 FDD Document
- (16) you or any Principal fails to comply with the confidentiality or
You acknowledge that your violation of any covenant of this Section 18 would result in irreparable injury to Amorino for which no adequate remedy at law may be available, and you consent to the issuance of, and agree to pay all court costs and reasonable attorneys' fees incurred by Amorino in obtaining, without the posting of any bond, an ex parte or other order for injunctive or other legal or equitable relief with respect to such conduct or action.
You and each Principal agree to pay all costs and expenses (including reasonable attorneys' fees) incurred by Amorino in connection with the enforcement of this Section 18.
You and each Principal expressly agree that the existence of any claims you may have against Amorino, whether or not arising from this Agreement, shall not constitute a defense to Amorino's enforcement of the covenants in this Section 18.
Source: Item 22 — CONTRACTS (FDD pages 80–81)
What This Means (2025 FDD)
According to Amorino's 2025 Franchise Disclosure Document, failure to comply with confidentiality or noncompete covenants as outlined in the franchise agreement can lead to specific repercussions. If a franchisee or any principal associated with the franchise fails to adhere to these covenants, it constitutes a breach of the agreement.
Amorino emphasizes the significance of these covenants by stating that any violation would cause irreparable injury to Amorino, potentially leading to legal action. The company is entitled to seek injunctive relief, which means a court order to stop the franchisee from continuing the violating behavior. Moreover, Amorino is entitled to recover all costs and expenses, including reasonable attorneys' fees, incurred in enforcing these covenants. This financial burden would fall on the franchisee or principal who breached the agreement.
Furthermore, the agreement stipulates that the existence of any claims a franchisee may have against Amorino does not serve as a valid defense against Amorino's enforcement of the noncompete and confidentiality clauses. This means a franchisee cannot justify a breach of these covenants by claiming Amorino owes them something or has acted unfairly. The franchisee and their principals must adhere to these covenants regardless of any grievances they might have against the franchisor. This is a common practice in franchising to protect the brand's confidential information and market position.