After termination or expiration of an Amorino franchise, what is the timeframe for not employing someone previously employed by Amorino?
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 individuals previously associated with Amorino. Specifically, for a period of 30 days, a former franchisee cannot employ or attempt to employ any person who is or has been 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 post-term covenant aims to protect Amorino's interests by preventing former franchisees from poaching valuable employees who possess knowledge of the Amorino system. This is a fairly standard practice in franchising, as franchisors want to protect their investment in training and development of their employees.
The restriction applies to salaried managerial employees of Amorino or its affiliates. It is important to note that this restriction lasts for only 30 days. A prospective franchisee should be aware of this restriction and factor it into their post-termination business plans to avoid any potential legal issues with Amorino.