What is the purpose of the Amorino Addendum to Franchise Agreement?
Amorino Franchise · 2025 FDDAnswer from 2025 FDD Document
we shall execute an addendum to memorialize the location of the Franchised Location, as described in Section 1.A(2).
B. Protected Area.
- (1) Amorino grants to you the exclusive right to operate the Franchised Business at the Franchised Location in the territory to be identified as the "Protected Area" in an addendum substantially similar to the Form of Addendum (the "Protected Area"). The territory identified in such addendum as the "Protected Area" shall be the "Protected Area" for all purposes under this Agreement. During the term of this Agreement, Amorino shall not own or operate, or license or grant anyone else the right to own or operate, an Amorino Store, kiosk outlet, mobile outlet or other retail outlet under the Proprietary Marks within the Protected Area.
- (2) You acknowledge and agree that the franchise granted to you under this Agreement is nonexclusive outside of the Protected Area and that you may not operate in any way or sell any Proprietary Products or other Amorino Goods and Services outside the Protected Area if the area is reserved exclusively by Amorino or by another franchisee or such sale is otherwise in violation of this Agreement.
- (3) You further acknowledge that exclusivity of the Protected Area can be revoked upon the occurrence of any of the events which would give rise to our right to terminate this Agreement and your franchise as set forth in Section 16 of this Agreement.
Source: Item 22 — CONTRACTS (FDD pages 80–81)
What This Means (2025 FDD)
According to the 2025 Amorino FDD, the purpose of the addendum to the franchise agreement is twofold: to specify the location of the Franchised Location and to define the Protected Area granted to the franchisee.
Specifically, the addendum serves to memorialize the exact location where the franchisee is authorized to operate their Amorino store. This ensures clarity and avoids any ambiguity regarding the primary site of the franchised business.
Additionally, the addendum identifies the "Protected Area" within which Amorino grants the franchisee exclusive rights to operate. During the term of the agreement, Amorino commits not to establish or license any other Amorino stores, kiosks, mobile outlets, or retail outlets under its trademarks within this Protected Area. This exclusivity is a key element of the franchise agreement, offering the franchisee a degree of market protection.
However, the FDD also notes that this exclusivity is not absolute and can be revoked if the franchisee breaches the agreement, potentially leading to termination. Furthermore, the franchise is non-exclusive outside of the Protected Area, and Amorino retains the right to operate or franchise other businesses under different trademarks, even if they compete with the Amorino franchise.