Under what circumstances will the non-compete obligations for an Amorino franchisee be tolled?

According to Amorino's 2025 Franchise Disclosure Document, the non-compete obligations for both the franchisee and their principals will be tolled during any period of noncompliance. This means that if a franchisee or a principal of the franchisee violates the terms of the non-compete agreement, the period during which they are restricted from competing with Amorino will be paused for the duration of the violation.

For a prospective franchisee, this implies that any breach of the non-compete agreement will effectively extend the duration of the non-compete restriction. For example, if the non-compete period is two years and a franchisee violates the agreement for three months, the non-compete period will be extended by those three months, resulting in a total restriction of two years and three months.

This tolling provision serves as a deterrent against non-compliance, as it ensures that Amorino franchisees and their principals cannot benefit from violating the non-compete agreement. It is a fairly standard practice in franchising to include such a clause to protect the franchisor's interests and maintain the integrity of the franchise system.