After Amorino purchases a competitive franchise network, can they use Amorino's Proprietary Marks?
Amorino Franchise · 2025 FDDAnswer from 2025 FDD Document
- k) if we, through a merger or any other form of acquisition acquire the ownership rights to or the rights, as franchisor or licensor, to collect franchise fees or licensing fees from any business(es) that are located within your Area Development Territory, and so long as such business(es) would not become converted to operate under the Proprietary Marks; then such acquired business(es) shall not be deemed to violate the Territory rights granted to you and you shall not be entitled to receive any revenue, royalty or other rights associated with such acquired business(es);
Source: Item 22 — CONTRACTS (FDD pages 80–81)
What This Means (2025 FDD)
According to Amorino's 2025 Franchise Disclosure Document, Amorino has specific rights regarding acquisitions. If Amorino acquires the rights to collect franchise fees from a business within a franchisee's Area Development Territory, and those businesses are not converted to operate under Amorino's Proprietary Marks, it does not violate the franchisee's territory rights.
This means that Amorino can acquire a competing franchise network without necessarily converting those locations to Amorino stores. The acquired businesses can continue to operate under their existing trademarks. In this scenario, the franchisee would not be entitled to any revenue or royalties from these acquired businesses as long as they maintain their original branding and do not become Amorino locations.
This clause protects Amorino's ability to grow through acquisition without automatically expanding a franchisee's territory or revenue share. However, it also means that an Amorino franchisee could find themselves operating near a newly acquired competitor that is not required to convert to the Amorino brand.
For a prospective franchisee, this highlights the importance of understanding the competitive landscape and Amorino's growth strategy in their desired territory. It would be prudent to ask Amorino about their plans for acquisitions and how those acquisitions might impact existing franchisees.