After termination of an Amorino franchise, is a franchisee prohibited from employing someone who was employed by Amorino or an Amorino affiliate within the last 30 days?
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, a franchisee faces certain restrictions regarding employment 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 the franchisee) is prohibited from employing or seeking to employ anyone who was employed by Amorino or an Amorino affiliate within the previous 30 days. This restriction applies only to salaried managerial employees. Furthermore, the franchisee is barred from directly or indirectly inducing such a person to leave their employment with Amorino.
This post-termination covenant not to compete is designed to protect Amorino's interests by preventing former franchisees from poaching key employees who possess valuable knowledge of the Amorino system. The restriction is limited to managerial employees, suggesting that Amorino is most concerned about protecting its management expertise and operational know-how.
For a prospective Amorino franchisee, this means that if they decide to leave the Amorino system, they will not be able to hire certain former Amorino employees for a period of two years. This could potentially limit their access to experienced personnel in the gelato industry, especially in areas where Amorino has a strong presence. It is important to note that this restriction only applies to salaried managerial employees who were recently employed by Amorino or its affiliates.
It is also important to note that this non-compete extends beyond just employment restrictions. The franchisee is also prohibited from diverting customers or suppliers of any Amorino store to a competitor, or from engaging in any business that involves the production or sale of gelato or other products offered by Amorino stores within certain geographic areas. These restrictions are designed to protect Amorino's market share and brand reputation after a franchise agreement ends.