How is the 'Average Gross Margin' calculated for an Amorino franchise?
Amorino Franchise · 2025 FDDAnswer from 2025 FDD Document
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- "Average Gross Margin" is defined as Average Net Revenues less Total Average Cost of Goods Sold.
The percentage was determined by dividing the Average Gross Profit by Average Net Revenues.
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- "Net Revenues" includes all revenues generated from all business conducted at or from a store during the Calendar Year, including amounts received from the sale of food items. "Net Revenues" does not include the amount of any applicable sales tax imposed by any federal, state, municipal or other governmental authority if such taxes are stated separately when the customer is charged, and franchisee pays such amounts as and when due to the appropriate taxing authority.
Also excluded from Net Revenues are the amount of any documented refunds, chargebacks, credits and allowances given to customers in good faith pursuant to our standard procedures for issuing such refunds.
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- "COGS" is defined as all direct costs including gelato, other products, and dry goods costs.
The average presented above is determined by taking the sum of included franchisees costs of goods sold and dividing it by the number of stores.
The percentage was determined by dividing the average COGS by Average Net Revenues.
| 2023 P&L | Average | % | No. of Stores Median | ||
|---|---|---|---|---|---|
| Category | $ | Above/Below | $ | % | |
| Net | $1,080,683 | 9/16 | $654,324 | ||
| Revenues | |||||
| COGS | $345, 170 | 31.9% | 10/16 | $208,165 | 31.8% |
| Average | $735, 463 | 68.1% | 9/16 | $446,159 | 68.2% |
| Gross | |||||
| Margin |
Source: Item 19 — FINANCIAL PERFORMANCE REPRESENTATIONS (FDD pages 68–73)
What This Means (2025 FDD)
According to Amorino's 2025 Franchise Disclosure Document, the 'Average Gross Margin' is defined as the 'Average Net Revenues' less the 'Total Average Cost of Goods Sold'. The percentage for the average gross margin is determined by dividing the 'Average Gross Profit' by the 'Average Net Revenues'.
'Average Net Revenues' includes all revenues generated from business conducted at the store, including food sales, but excludes sales taxes, documented refunds, chargebacks, credits, and allowances. 'COGS' includes all direct costs, such as gelato, other products, and dry goods. The average COGS is calculated by summing the COGS of included franchisees and dividing by the number of stores. The percentage is determined by dividing the average COGS by the average net revenues.
For the 2023 calendar year, the average gross margin for Amorino was $735,463, representing 68.1% of net revenues. This was calculated from 16 stores, with 9 stores performing above average and 7 below. The median gross margin for these stores was $446,159, representing 68.2%. Understanding these calculations can help a prospective franchisee analyze the potential profitability of an Amorino franchise.