Can Amorino purchase a competitive franchise network?
Amorino Franchise · 2025 FDDAnswer from 2025 FDD Document
r items designed for wholesale sale to different types of outlets such as prepackaged items to be sold in supermarkets and other product categories to be sold through unaffiliated retail outlets;
- e) acquire and continue to operate, directly or indirectly, any business operating under different trademarks in or outside the Area Development Territory;
- f) acquire and retain, directly or indirectly, the rights and obligations of any franchisor or licensor of any business similar to an Amorino Store operating under different trademarks in or outside the Area Development Territory;
- g) in or outside the Area Development Territory, to establish and promote other franchise systems involving different services or products using different trademarks, and to establish company-owned or franchised outlets for those systems, without offering you the right to participate;
- h) offer and sell Amorino franchises to persons who are located outside the Area Development Territory;
- i) offer and sell franchising rights to Area Developers who are located outside the Territory;
- j) be acquired, directly or indirectly, in whole or in part, by any person(s) who provide products or services similar or dissimilar to those provided by Amorino Stores;
Source: Item 22 — CONTRACTS (FDD pages 80–81)
What This Means (2025 FDD)
According to Amorino's 2025 Franchise Disclosure Document, Amorino has the right to acquire a competitive franchise network. Specifically, Amorino can acquire the rights and obligations of any franchisor or licensor of a business similar to an Amorino store, even if it operates under different trademarks, whether inside or outside of an Area Development Territory.
This clause protects Amorino's ability to grow and expand its brand through acquisitions. It also states that Amorino can be acquired by a person or business that provides similar or dissimilar products or services to Amorino stores.
However, if Amorino acquires a business within a franchisee's Area Development Territory that would not be converted to operate under Amorino's Proprietary Marks, this acquisition does not violate the franchisee's territory rights, and the franchisee is not entitled to any revenue or royalties from the acquired business. This clarifies the franchisee's rights in the event of an acquisition by Amorino.