How is the average 'Interest Expense' determined for Amorino franchises?

According to Amorino's 2025 Franchise Disclosure Document, 'Interest Expense' is defined as the financing charges for any outside bank loans being paid by the franchisee to their lender. The average interest expense is calculated by summing the interest expenses of the included franchisees and dividing by 236. The FDD also states that the percentage is determined by dividing the average Interest Expense by Average Net Revenues.

For a prospective Amorino franchisee, this means that the reported average interest expense reflects the average cost of financing among existing franchisees. However, the FDD also notes that interest expense can vary substantially depending on the amount and kind of financing a franchisee obtains to establish their store. This implies that a new franchisee's actual interest expense could differ significantly from the average, depending on their individual financial circumstances and the loan terms they secure.

It is important to note that the FDD advises prospective franchisees to consult with their tax advisor regarding depreciation and amortization schedules and the period over which the assets of their store may be amortized or depreciated. This is because these factors can also impact a franchisee's overall financial performance. The FDD also recommends that prospective franchisees conduct their own independent investigation to determine whether the franchise may be profitable to them and to consult with their financial advisor or personal accountant concerning financial projections and federal, state, and local income taxes.