Can Amorino purchase a competitive franchise network and operate it?
Amorino Franchise · 2025 FDDAnswer from 2025 FDD Document
- 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;
Source: Item 22 — CONTRACTS (FDD pages 80–81)
What This Means (2025 FDD)
According to the 2025 Amorino Franchise Disclosure Document, Amorino retains specific rights regarding other businesses. Amorino is not restricted from acquiring and operating businesses under different trademarks, even those similar to an Amorino store. This means Amorino can acquire a franchise network that competes with Amorino, as long as it operates under different trademarks.
This clause protects Amorino's ability to diversify and expand its business interests beyond the Amorino brand. It also clarifies that franchisees do not have the right to claim revenue or exercise control over any businesses acquired by Amorino that operate under different trademarks, even if those businesses are within the franchisee's territory.
For a potential franchisee, this means that Amorino could own and operate competing businesses, even within or near their territory, which could impact their market share. However, these businesses must operate under different trademarks, preserving the distinctiveness of the Amorino brand. Franchisees should be aware of this possibility and consider its potential impact on their investment.