After termination or expiration of an Amorino franchise, is inducing a salaried managerial employee of Amorino to leave their employment 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, there are restrictions regarding the employment of Amorino's salaried managerial employees. Specifically, during a two-year period after the franchise ends, the franchisee (or any officer, director, shareholder, general partner, or limited partner of a corporate or partnership franchisee) is prohibited from employing or seeking to employ any person who is or has been a salaried managerial employee of Amorino or its affiliates within the previous 30 days. Furthermore, the franchisee is prohibited from directly or indirectly inducing such a person to leave their employment. This restriction is part of the non-competition covenants outlined in Section 18.D of the franchise agreement.
This provision is designed to protect Amorino's investment in its employees and prevent former franchisees from poaching valuable staff who possess knowledge of Amorino's operations and business practices. It ensures that franchisees do not gain an unfair competitive advantage by leveraging Amorino's trained personnel. The restriction applies regardless of whether the employee was directly employed by Amorino or by an affiliate of Amorino.
For a prospective Amorino franchisee, this means that upon termination or expiration of their franchise agreement, they must avoid any actions that could be construed as attempting to hire or recruit Amorino's managerial employees. This includes direct solicitations, indirect inducements, or even simply expressing interest in hiring such employees. Failure to comply with this covenant could result in legal action by Amorino.
It is important for potential franchisees to carefully review Section 18.D of the franchise agreement to fully understand the scope and limitations of this non-competition covenant. They should also seek legal counsel to ensure they are aware of their obligations and the potential consequences of non-compliance.