After termination or expiration of an Amorino franchise, can I own a competing business?
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)
According to Amorino's 2025 Franchise Disclosure Document, Section 18.D of the franchise agreement specifies non-competition covenants that apply for a two-year period after the expiration or termination of the franchise. During this time, the franchisee, including its officers, directors, shareholders, general partners, or limited partners, is restricted from certain activities.
Specifically, the franchisee cannot divert or attempt to divert customers or suppliers of any Amorino store to a competitor, nor can they perform any action that could harm the goodwill associated with Amorino's proprietary marks and system. Additionally, the franchisee is prohibited from employing or soliciting any person who is or has been employed by Amorino or its affiliates in a salaried managerial position within the previous 30 days.
Most importantly, the franchisee is barred from owning, maintaining, advising, operating, or investing in any business involved in the production or sale of gelato or other ice cream products that compete with Amorino. This restriction applies to locations within the United States, its territories, and commonwealths, as well as any other country, province, state, or geographic area that includes the location of former stores, the former protected area (or a three-mile radius if no protected area existed), a three-mile radius of any other Amorino store, or the franchisee's former territory. Therefore, a former Amorino franchisee is significantly restricted from operating a competing gelato business for two years after the franchise agreement ends, within specific geographic limitations.