What is the Advertising Fee for an Amorino franchise and how is it calculated?
Amorino Franchise · 2025 FDDAnswer from 2025 FDD Document
of money on appropriate marketing and advertising the opening of your Store, in the manner described in Section 12.B.
- C. Advertising Fee. In each calendar year during the term of this Agreement, we can require you to spend up to the percentage of your Gross Revenue specified in the Data Sheet, for advertising, marketing and public relations initiatives, as further described in Section 12.C. "Gross Revenue" means all cash collected, or other consideration received, for the sale of all products and services of any nature rendered or sold at or from or as a result of the Store and/or otherwise related to the Franchised Business, whether such products are sold or services are
performed at the Franchised Location or elsewhere, and all other income of every kind and nature related to the Franchised Business, less any authorized discounts (collectively, "Gross Revenue"). Revenue collected from customers in the form of sales tax, federal, state, county, or city taxes, excise tax, or other similar tax collected from customers that you owe to governmental entities must be reported to us, but is excluded from Gross Revenue for the purpose of computing the royalty fee. In addition to taxes, as described in the previous sentence, the following may also be deducted from Gross Revenue: (a) The selling price of any goods returned by customers or the price charged for any services provided to customers to the extent you give any credit, discount, refund or similar allowance but an exchange of merchandise does not result in an exclusion except to the extent of any accompanying credit, discount, refund or other allowance given to the customer; (b) Items returned to their source for credit or other allowance; (c) Amounts or credits received on claims for loss or damage to merchandise or other assets of your Amorino store but not for claims for loss of business under your business interruption insurance; (d) Sales of equipment, trade fixtures or similar property not constituting merchandise of your store; (e) Transfers of merchandise to or from other Amorino facilities when those transfers are made only for the convenient operation of the concerned facilities; (f) gift certificates or similar vouchers until they are redeemed at your store. You agree to pay the Advertising Fee on a monthly basis, within 10 days of the end of each month during the term of this Agreement, with the first Advertising Fee payment due ten days after the first month (full or partial) that your Store is open.
- D. Decorations Fee. In each calendar year during the term of this Agreement, you are required to spend at least 0.5% of your Gross Revenue on seasonal and holiday decorations to be displayed in and around the Store, which decorations must comply with the standards we set forth by Amorino.
- E. Development Fee. If you are opening a Traditional Store and if so specified in the Data Sheet, we may require you to pay a development fee in the amount set forth in the Data Sheet, for services to be provided by us or a consulting firm designated by us to assist you in managing the selection and development of the Store. If we require you to pay such fee, half of the fee is due when you sign this Agreement, and the other half is due on the Site Selection Date. Such fee is to be paid to us on behalf of the consultant and is nonrefundable upon payment.
- F. Transfer Fee. In connection with a transfer of the Franchised Business, you must pay the applicable transfer fee in accordance with Section 15.
- G. Other Payments to Amorino.
Source: Item 22 — CONTRACTS (FDD pages 80–81)
What This Means (2025 FDD)
According to Amorino's 2025 Franchise Disclosure Document, the company has the option to mandate that franchisees allocate a maximum of 3% of their Gross Revenue towards advertising, marketing, and public relations initiatives. These initiatives must receive prior approval from Amorino. Alternatively, Amorino may require franchisees to remit this amount either to Amorino directly or to an approved supplier, which will then be used for advertising, marketing, and public relations efforts.
If Amorino requires the franchisee to spend the money directly, the franchisee must provide proof of these expenditures according to Amorino's specified procedures. In addition to this advertising fee, franchisees are also obligated to purchase promotional materials designated by Amorino from Amorino or its approved suppliers to promote new and featured products.
Gross Revenue is defined as all cash or other consideration received from the sale of products and services at or related to the franchised business, less authorized discounts. It excludes sales tax and similar taxes collected from customers that are owed to governmental entities. The advertising fee is to be paid monthly, within 10 days of the end of each month, with the first payment due ten days after the first month the store is open.
It is important to note that company-owned Amorino stores are not required to contribute to these advertising initiatives, and franchised stores may not be required to contribute equally. This could create a situation where some franchisees are contributing more than others to the advertising fund, which could impact their profitability. Prospective franchisees should inquire about the specific advertising requirements and how they will be applied to their individual franchise.