When must the Area Developer pay the Area Development Territory Fee to Amorino?
Amorino Franchise · 2025 FDDAnswer from 2025 FDD Document
edule "A".
- (d) Area Developer shall not have already received the right to enter into three additional five-year development terms.
V. PAYMENTS BY AREA DEVELOPER
5.1 Area Development Territory Fee.
Area Developer shall pay to Company in cash or by certified check concurrently with the execution of this Agreement the Area Development Territory Fee, set forth in Schedule "A" "Area Development Territory Fee"). The Area Development Territory Fee will be equal to the sum of a) the current initial franchise fee (for the first location) (namely $30,000), plus b) one half the current initial franchise fee (namely $15,000) times the number of additional locations provided in your area development schedule. For example, if you sign an Area Development Agreement for five locations, you must pay an initial area development fee equal to $90,000 ($30,000 plus $60,000).
Source: Item 22 — CONTRACTS (FDD pages 80–81)
What This Means (2025 FDD)
According to Amorino's 2025 Franchise Disclosure Document, the Area Developer is required to pay the Area Development Territory Fee to Amorino in cash or by certified check concurrently with the execution of the Area Development Agreement.
The Area Development Territory Fee is calculated as the sum of two components. The first is the current initial franchise fee for the first location, which is $30,000. The second component is one-half of the current initial franchise fee, which is $15,000, multiplied by the number of additional locations included in the area development schedule.
For example, if an Area Development Agreement is signed for five locations, the initial area development fee would be $90,000, calculated as $30,000 plus $60,000 (which is $15,000 multiplied by 4 additional locations). When the Area Developer signs each unit franchise agreement for each additional location, the $15,000 paid for each additional location as part of the initial Area Development Territory Fee will be applied as a partial credit against the then-current initial franchise fee for that location. The Area Developer must then pay the difference between the then-current franchise fee and the $15,000 credit at the time the lease is signed for that location.