After termination or expiration of an Amorino franchise, is employing someone who was employed by an Amorino affiliate prohibited?
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. |
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, after the expiration or termination of a franchise agreement, there are restrictions regarding the employment of individuals previously associated with Amorino or its affiliates. For a period of two years following the termination or expiration, a former franchisee (including its officers, directors, shareholders, general partners, or limited partners) is prohibited from employing or seeking 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. This restriction also includes indirectly inducing such a person to leave their employment.
This non-compete clause is designed to protect Amorino's interests by preventing former franchisees from poaching talent that could give them an unfair advantage. The restriction specifically targets salaried managerial employees, suggesting that Amorino places a higher value on retaining individuals in leadership positions who possess critical knowledge of the Amorino system.
For a prospective Amorino franchisee, this means that upon exiting the franchise system, they will be unable to hire certain employees from Amorino or its affiliates for two years. This could potentially limit their access to experienced personnel if they choose to start a similar business. It is important for franchisees to understand the scope and duration of this restriction before entering into a franchise agreement with Amorino.