Does Amorino reserve any rights within the Area Development Territory?
Amorino Franchise · 2025 FDDAnswer from 2025 FDD Document
Company, on behalf of itself and its affiliates, reserves the following sole and absolute right to:
- a) provide, franchise, license, sell, distribute and market any services or products (under any brand, including but not limited to our Proprietary Marks) through any channel or method of distribution, other than an Amorino Store located in your Area Development Territory, including, without limitation, through retail establishments or via the internet, whether inside or outside of your Area Development Territory;
- b) to establish and operate, and grant to others the right to establish and operate, Amorino Stores at locations anywhere outside the Area Development Territory, including locations near, on or adjacent to the Area Development Territory's boundaries;
c) offer and sell to persons outside the Area Development Territory, using the Proprietary Marks, services and products that are the same as the services and products offered by Amorino Stores;
d) in or outside the Area Development Territory, to offer and sell different services and products not offered within an Amorino Store, using the Proprietary Marks, without offering you the right to participate, however, we agree that services and products that are consistent with the types of products and services sold by the Stores and with the manner in which the Stores are operated, will be limited to sale through the Stores except for 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;
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); and
l) provide, offer, sell and grant others the right to provide, offer and sell services and goods similar to and/or competitive with those provided at Amorino Stores, whether identified by the Proprietary Marks or other trademarks or service marks, at festivals, cultural or trade exhibitions, or other public events, both inside and outside the Territory.
If you desire to participate in any such event or events in your Development Territory, you must notify us of the type and location of the event, the nature of your proposed participation and any other information we reasonably request.
We will have a reasonable time to consider and grant or deny your request or to elect to undertake the participation ourselves.
Source: Item 22 — CONTRACTS (FDD pages 80–81)
What This Means (2025 FDD)
According to Amorino's 2025 Franchise Disclosure Document, Amorino reserves several rights within the Area Development Territory granted to an Area Developer. These reservations allow Amorino to operate and expand its brand through various channels without infringing on the Area Developer's territory, with some limitations.
Amorino retains the right to provide, franchise, license, sell, distribute, and market any services or products under any brand (including Amorino's Proprietary Marks) through any channel or method of distribution other than an Amorino store located in the Area Developer's territory. This includes retail establishments or the internet, whether inside or outside the Area Development Territory. Amorino can also acquire and continue to operate any business under different trademarks, even within the Area Development Territory. Additionally, Amorino can be acquired by any person who provides similar or dissimilar products or services to those provided by Amorino stores.
Furthermore, Amorino can offer and sell services and products using the Proprietary Marks to individuals outside the Area Development Territory. They can also offer and sell different services and products not offered within an Amorino store, using the Proprietary Marks, without offering the Area Developer the right to participate. However, services and products consistent with those sold in Amorino stores will generally be limited to sale through the stores, except for wholesale items like prepackaged goods for supermarkets or other retail outlets. Amorino also retains the right to participate in events inside the territory if the Area Developer does not participate themselves.
These reservations mean that while an Area Developer has exclusive rights to develop Amorino stores within their territory, Amorino retains significant control over brand distribution, alternative channels, and potential acquisitions. A prospective franchisee should carefully consider these reservations and how they might impact their business operations and revenue potential within the Area Development Territory. It is important to understand the potential for competition from Amorino's other ventures and distribution methods.