Can Amorino and its Affiliates negotiate purchase arrangements with suppliers for the benefit of Amorino franchisees?
Amorino Franchise · 2025 FDDAnswer from 2025 FDD Document
You acknowledge and agree that Amorino and its Affiliates may negotiate purchase arrangements with suppliers for your benefit and may derive revenue or obtain rebates, bulk pricing discounts or allowances for their own account from approved or designated suppliers if rebates or other considerations become available because of your purchases of products or services.
Source: Item 22 — CONTRACTS (FDD pages 80–81)
What This Means (2025 FDD)
According to Amorino's 2025 Franchise Disclosure Document, Amorino and its affiliates are permitted to negotiate purchase arrangements with suppliers for the benefit of franchisees. These negotiations may lead to benefits such as rebates, bulk pricing discounts, or allowances that Amorino or its affiliates can retain.
As an Amorino franchisee, you are required to purchase Amorino Goods and Services from Amorino or its designated sources, including affiliates like -18° and Amorino Trading, LLC. These goods and services will be available at prices determined by the supplier, following their current purchase terms and conditions. For other products, equipment, supplies, and materials, including Proprietary Products, you must use suppliers who meet Amorino's standards and have been approved in writing.
This arrangement means that while Amorino can leverage its network to potentially secure better pricing or terms, it's not obligated to pass those savings directly to the franchisee. Amorino benefits from any rebates or discounts obtained through these negotiations. Therefore, as a franchisee, it is important to understand that while Amorino aims to negotiate favorable terms, the primary beneficiary of these arrangements may be Amorino itself.