What section of the Amorino area development agreement outlines the non-competition covenants during the term of the franchise?
Amorino Franchise · 2025 FDDAnswer from 2025 FDD Document
| Non r. competition covenants after the franchise is | Section 18.D of the franchise agreement | During a two-year uninterrupted period after the expiration or termination, neither you, nor any officer, director, shareholder or general partner or limited partner of a corporate or partnership franchisee, shall: |
|---|---|---|
| terminated or expires | (1) Divert or attempt to divert any present or prospective customer or supplier of any Amorino Store to any competitor, by direct or indirect inducement or otherwise, or do or perform, directly or indirectly, any other act injurious or prejudicial to the goodwill associated with the proprietary marks and the system. | |
| (2) Employ or seek to employ any person who is or has been | ||
| within the previous 30 days employed by Amorino or an | ||
| Affiliate of Amorino as a salaried managerial employee, or | ||
| otherwise directly or indirectly induce such person to leave his | ||
| or her employment. | ||
| (3) Own, maintain, advise, operate, engage in, be employed | ||
| by, make loans to, invest in, provide any assistance to, or have | ||
| any interest in (as owner or otherwise) or relationship or | ||
| association with, any business that engages in the production | ||
| or sale at retail or wholesale of gelato or other ice cream | ||
| maintenance, and any other products or services offered by | ||
| your Store or proposed to be offered by your Store or offered | ||
| by Amorino stores, at any location within the United States, | ||
| its territories or commonwealths, or any other country, | ||
| province, state or geographic area that (i) is, or is intended to | ||
| be, located at the acquisition of any of your former stores; (ii) | ||
| within the former protected area of any of your stores (or, if | ||
| there was no protected area, | ||
| within a three-mile radius of the | ||
| store); (iii) within a three-mile radius of any other store | ||
| operating under the system and proprietary marks in existence | ||
| or under development at the time of such expiration, | ||
| termination or transfer; or (iv) anywhere within your former | ||
| territory. |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER, AND DISPUTE RESOLUTION (FDD pages 55–67)
What This Means (2025 FDD)
Based on the 2025 Amorino Franchise Disclosure Document, the provided excerpts do not specify which section of the area development agreement outlines the non-competition covenants during the term of the franchise. However, Section 18.D of the franchise agreement outlines the non-competition covenants after the franchise is terminated or expires.
Specifically, Section 18.D states that for a two-year period after the franchise ends, the franchisee (or their officers, directors, shareholders, or partners) cannot divert customers or suppliers, employ Amorino's managerial employees, or engage in any business that produces or sells gelato or similar products within certain geographic areas. These areas include the location of former stores, the former protected area, or within a three-mile radius of any other Amorino store.
To fully understand the non-competition obligations during the franchise term under the area development agreement, a prospective franchisee should ask Amorino for clarification on the specific section that addresses these covenants. This will help the franchisee understand the restrictions they will be under while operating the Amorino franchise.