If a Principal ceases to own an interest in the Amorino Franchisee, how long does the non-compete apply to them?
Amorino Franchise · 2025 FDDAnswer from 2025 FDD Document
If any Principal ceases to own an interest in the Franchisee for any reason during the franchise time, the foregoing covenants shall apply to the departing Principal for a two-year period beginning on the date such person ceases to meet the definition of a Principal.
The obligations described in this Section shall be tolled during any period of noncompliance.
Source: Item 22 — CONTRACTS (FDD pages 80–81)
What This Means (2025 FDD)
According to Amorino's 2025 Franchise Disclosure Document, if a Principal no longer has ownership in the Amorino franchise, they are subject to a non-compete agreement for two years. This two-year period starts from the date they cease to be a Principal of the franchise.
This non-compete clause prevents the departing Principal from engaging in any business that produces or sells ice cream products at retail or wholesale. This includes owning, maintaining, advising, operating, being employed by, making loans to, or having any interest in such a business. The restrictions apply specifically to businesses located at the former franchise location, within the former protected area (or a three-mile radius if no protected area existed), or within a three-mile radius of any other Amorino store.
It is important to note that the non-compete obligations are suspended during any period of noncompliance. This means that if the Principal violates the non-compete agreement, the remaining time on the non-compete clock pauses until the violation ceases, effectively extending the duration of the restriction. Prospective franchisees and their Principals should carefully consider these non-compete terms and their implications before investing in an Amorino franchise.