If an Amorino franchisee violates the non-compete agreement, what happens to the duration of the non-compete obligation?

According to Amorino's 2025 Franchise Disclosure Document, if a franchisee or their principals violate the non-compete agreement, the duration of the non-compliance period will be added to the original non-compete term. The FDD specifies that the non-compete obligations will be 'tolled' during any period of noncompliance. This means the clock stops running on the non-compete while the violation continues.

For a prospective Amorino franchisee, this means that any breach of the non-compete agreement will effectively extend the period during which they are restricted from engaging in competitive activities. The initial non-compete period is two years, but any time spent in violation of the agreement will be added to the end of that two-year period.

This provision is designed to ensure that Amorino's interests are protected and that franchisees are not able to circumvent the non-compete agreement by temporarily ceasing compliance. It serves as a strong deterrent against violating the non-compete terms, as any violation will only prolong the restriction period. Franchisees should be aware of this clause and ensure they fully understand and comply with the non-compete obligations outlined in the franchise agreement.