Is there a geographic limit to the post-term non-compete agreement with Amorino?
Amorino Franchise · 2025 FDDAnswer from 2025 FDD Document
During a two-year uninterrupted period after the expiration or termination of this Agreement, for any reason, neither Area Developer, nor any officer, director, shareholder or general partner or limited partner of a corporate or partnership franchisee, shall:
- (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 products, 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 location 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
Source: Item 22 — CONTRACTS (FDD pages 80–81)
What This Means (2025 FDD)
According to Amorino's 2025 Franchise Disclosure Document, the post-term non-compete agreement has geographic limitations. After the franchise agreement expires or terminates, the franchisee is restricted for two years from engaging in activities that compete with Amorino.
Specifically, the franchisee cannot operate a business that produces or sells gelato, ice cream, or other products and services offered by Amorino stores. This restriction applies within the United States, its territories, and commonwealths, as well as any other country, province, state, or geographic area under certain conditions. These conditions include the location of the former store, the former protected area (or a three-mile radius if no protected area existed), a three-mile radius of any other Amorino store, or anywhere within the former Area Development Territory.
This means that a former Amorino franchisee is limited in where they can operate a competing gelato business after their franchise agreement ends. The restrictions are designed to protect Amorino's market and brand, but they also mean that a franchisee needs to consider these limitations when planning their future business activities after leaving the Amorino system.