After termination of an Amorino franchise, does the restriction on operating a competing gelato business apply within the United States?
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, if the franchise agreement is terminated or expires, there are post-term non-compete restrictions. During a two-year period after the end of the franchise, the franchisee (or its officers, directors, shareholders, or partners) cannot engage in activities that would harm the Amorino brand or compete with it.
Specifically, the franchisee cannot divert customers or suppliers, employ Amorino's or its affiliates' salaried managerial employees, or be involved with any business that produces or sells gelato or other products/services offered by Amorino stores. This restriction applies to any location within the United States, its territories, or commonwealths. It also extends to any other country, province, state, or geographic area where the franchisee's former store was located, within the former protected area (or a three-mile radius if there was no protected area), within a three-mile radius of any other Amorino store, or anywhere within the franchisee's former territory.
This non-compete clause is a standard practice in franchising to protect the brand and prevent former franchisees from using confidential information or knowledge gained during their franchise term to unfairly compete with the franchisor. Prospective Amorino franchisees should carefully consider the implications of this restriction, especially if they plan to remain in the gelato business after their franchise agreement ends.