After the termination of the Amorino agreement, is the Area Developer prohibited from providing assistance to a business that sells gelato within a three-mile radius of any other Amorino store under development?
Amorino Franchise · 2025 FDDAnswer from 2025 FDD Document
During a two-year uninterrupted period after the expiration or termination of this Agreement, for any reason, neither Area Developer, nor any officer, director, shareholder or general partner or limited partner of a corporate or partnership franchisee, shall:
- (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 products, 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 location 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. The obligations described in this Section shall be tolled during any period of noncompliance.
Source: Item 22 — CONTRACTS (FDD pages 80–81)
What This Means (2025 FDD)
According to Amorino's 2025 Franchise Disclosure Document, after the termination of the Area Developer Agreement, there are restrictions regarding involvement with competing businesses. For a period of two years after the agreement's expiration or termination, the Area Developer is restricted from being associated with any business that produces or sells gelato or other ice cream products.
Specifically, the Area Developer cannot own, maintain, advise, operate, be employed by, make loans to, invest in, or provide assistance to any such business. This restriction applies to businesses located within a three-mile radius of any Amorino store operating under the Amorino system and Proprietary Marks, including stores under development at the time of the agreement's termination.
This non-compete clause is quite standard in franchising to protect the brand and other franchisees. The restrictions apply within the United States, its territories, and commonwealths, as well as any other country, province, state, or geographic area where Amorino stores operate or are planned. The obligations are suspended during any period of noncompliance, meaning the clock restarts once compliance resumes.