Is the non-compete restriction for Amorino franchisees limited to a specific geographic area after termination?
Amorino Franchise · 2025 FDDAnswer from 2025 FDD Document
y Marks or similar marks or operate or license others to operate a business under the Proprietary Marks or similar marks.
- D. Non-Competition After Expiration or Termination of Agreement. Commencing upon the later of: (a) a transfer permitted under this Agreement, expiration of this Agreement, or termination of this Agreement (regardless of the cause for termination) or (b) a final court order (after all appeals have been taken) with respect to any of the foregoing events or with respect to enforcement of this Section, and continuing for an uninterrupted period of two years thereafter, you and each of your Principals, shall not either directly or indirectly, for yourselves, or through, on behalf of, or in conjunction with any person, persons, or legal entity, own, maintain, advise, operate, engage in, be employed by, make loans to, or have any interest in or relationship or association with a business that engages in the production or sale at retail or wholesale of ice cream products, other than a Amorino Store operated pursuant to a then currently effective franchise agreement with Amorino, and (i) is, or is intended to be, located at the location of the former Franchised Business; (ii) within the former Protected Area of the Store (or, if there was no protected area, within a three-mile radius of the Store); or (iii) within a three-mile radius of any other store operating under the System and Proprietary Marks in existence or under development at the time of such expiration, termination or transfer. 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.
- E. Confidentiality and Non-Competition Agreements to Be Executed by Your Principals and Managers. Each of your Principals and managers shall execute and deliver to us a Confidentiality and Non-Competition Agreement in the form of Attachment C.
- F. Additional Provisions. The parties acknowledge and agree that Amorino shall have the right, in its sole discretion, to reduce the scope of any covenant set forth in this Section 18, or any portion thereof, without your consent or the consent of any Principal, effective immediately upon delivery of written notice to the affected party; and you and each Principal agree that such person shall comply forthwith with any covenant as so modified. 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. 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.
- G. Breach of Covenants Causes Irreparable Injury.
Source: Item 22 — CONTRACTS (FDD pages 80–81)
What This Means (2025 FDD)
According to Amorino's 2025 Franchise Disclosure Document, the non-compete agreement after the termination or expiration of the franchise agreement does have geographic limitations. For a period of two years after the agreement ends, the franchisee and their principals are restricted from involvement in any business that produces or sells ice cream products.
This restriction applies specifically to locations that (1) are at the former Franchised Business location, (2) are within the former Protected Area of the store (or a three-mile radius if there was no protected area), or (3) are within a three-mile radius of any other Amorino store operating under the Amorino system and proprietary marks.
For Area Developers, the restrictions extend to any location within the United States, its territories, or any other country where Amorino has used, sought registration of, or registered its proprietary marks, or operates/licenses others to operate under similar marks. This also includes the locations of any of the franchisee's former stores or anywhere within their former Area Development Territory. These obligations are suspended during any period of noncompliance.