After termination of an Amorino franchise, can a franchisee be employed by a business that sells gelato?
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, a franchisee is restricted from being employed by a business that sells gelato after the termination or expiration of their franchise agreement. Specifically, for a two-year period after the franchise ends, the franchisee (or any officer, director, shareholder, or partner of a corporate or partnership franchisee) cannot own, maintain, advise, operate, engage in, be employed by, make loans to, invest in, provide assistance to, or have any interest in any business involved in the production or retail/wholesale sale of gelato or ice cream.
This restriction applies to businesses operating within specific geographic areas. These areas include the location of any former Amorino stores of the franchisee, the former protected area of those stores (or a three-mile radius if there was no protected area), a three-mile radius of any other Amorino store in existence or under development at the time of termination, or anywhere within the franchisee's former territory. This non-compete clause is designed to protect Amorino's market and brand integrity by preventing former franchisees from directly competing using the knowledge and resources gained during their time with the franchise.
This post-termination covenant not to compete has significant implications for a franchisee considering leaving the Amorino system. It restricts their ability to work in the gelato or ice cream industry within certain locations for two years, potentially limiting their employment options and business ventures. Prospective franchisees should carefully consider these restrictions and how they might impact their future career plans before investing in an Amorino franchise.