After the termination or expiration of an Amorino franchise, who is subject to the non-competition covenants?
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, after the expiration or termination of the franchise agreement, certain parties are subject to non-competition covenants for a period of two years. These parties include the franchisee, as well as any officer, director, shareholder, general partner, or limited partner of a corporate or partnership franchisee.
During this two-year period, these individuals and entities are restricted from engaging in activities that could harm the Amorino brand. Specifically, they cannot divert or attempt to divert customers or suppliers to competitors, employ or solicit Amorino's salaried managerial employees (or those of its affiliates) within the previous 30 days, or engage in any business involved in the production or sale of gelato or similar products and services offered by Amorino.
The geographic scope of these restrictions includes locations at the former store, within the former protected area (or a three-mile radius if no protected area existed), within a three-mile radius of any other Amorino store, or anywhere within the franchisee's former territory. This broad scope means that former franchisees and their associated parties must be very careful about engaging in any similar business within a significant area after leaving the Amorino system.