If the Amorino franchisee is a Business Entity, who is considered a 'Principal'?

According to Amorino's 2025 Franchise Disclosure Document, if the franchisee is a business entity, a 'Principal' is defined as each principal, shareholder, partner, member, equity holder, and beneficial owner of the franchisee. This definition is important because the franchisor places specific obligations and restrictions on Principals.

For example, Principals are required to sign non-compete agreements, ensuring they do not engage in any business that competes with Amorino during the term of the franchise agreement. This restriction extends to owning, operating, or having any financial interest in businesses that sell gelato or similar products, except for another Amorino franchise.

Additionally, if the franchisee seeks to transfer ownership, each Principal and their spouse or registered domestic partner must provide a personal guaranty. This requirement underscores the franchisor's interest in securing the financial commitment of all individuals with a significant stake in the franchise. Therefore, prospective franchisees operating as business entities should be aware of the responsibilities and limitations placed on all individuals fitting the definition of a Principal.