After termination of an Amorino franchise, is a franchisee prohibited from advising a business that engages in the production or sale of 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 advising a business involved in the production or sale of gelato after the termination or expiration of the franchise agreement. This restriction applies for a period of two years. This non-compete covenant extends not only to the former franchisee but also to their officers, directors, shareholders, general partners, and limited partners if the franchisee is a corporation or partnership.
The non-compete clause specifically prohibits the franchisee from owning, maintaining, advising, operating, engaging in, being employed by, making loans to, investing in, providing assistance to, or having any interest in any business that produces or sells gelato or other ice cream products. This encompasses retail and wholesale activities, as well as any other products or services offered by Amorino stores.
The geographic scope of this restriction includes locations within the United States, its territories, and commonwealths, as well as any other country, province, state, or geographic area that is located at the acquisition of any of the franchisee's former stores; within a three-mile radius of the store (or the former protected area, if applicable); within a three-mile radius of any other Amorino store; or anywhere within the franchisee's former territory. This broad geographic scope means that a former franchisee's ability to engage in or advise a gelato business is significantly limited for two years after leaving the Amorino system.