After the termination of the Amorino agreement, for how long is the Area Developer restricted from diverting customers to competitors?
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:
- (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 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
Source: Item 22 — CONTRACTS (FDD pages 80–81)
What This Means (2025 FDD)
According to Amorino's 2025 Franchise Disclosure Document, after the termination or expiration of the Area Developer Agreement, the Area Developer is restricted from diverting customers or suppliers to competitors for a period of two years. Specifically, for a two-year uninterrupted period after the agreement ends, the Area Developer (or any of its officers, directors, shareholders, or partners) cannot divert or attempt to divert any present or prospective customer or supplier of any Amorino store to a competitor. This includes any direct or indirect inducement or any other action that could harm the goodwill associated with Amorino's trademarks and system.
This restriction is designed to protect Amorino from unfair competition by former Area Developers who might try to leverage their knowledge and relationships gained during their time with the franchise. The non-compete obligations also apply to preventing the Area Developer from employing or soliciting employees of Amorino or its affiliates within 30 days of their employment.
Furthermore, the Area Developer is also restricted from engaging in any business that produces or sells gelato or other ice cream products similar to those offered by Amorino stores within specific geographic areas. These areas include the location of any former stores, the former protected area of any stores (or a three-mile radius if there was no protected area), within a three-mile radius of any other Amorino store, or anywhere within the former Area Development Territory. The obligations are tolled during any period of noncompliance, meaning the clock stops on the restriction if the Area Developer violates the terms, and resumes once compliance is restored, effectively extending the restriction period.
Amorino also requires that each principal and manager of the Area Developer execute and deliver a confidentiality and non-competition agreement. This ensures that key individuals associated with the Area Developer are also bound by these restrictions, further safeguarding Amorino's interests and competitive position.