How is the 'Average Net Revenues' calculated for Amorino franchises?
Amorino Franchise · 2025 FDDAnswer from 2025 FDD Document
omers in good faith pursuant to our standard procedures for issuing such refunds. The "Average Net Revenues" is determined by taking the sum of included franchisees Net Revenues and dividing it by the number of stores. For the 2023 Calendar Year, the high Net Revenues reported to us was $1,972,908 and the low was $424,199. For the 2024 Calendar Year, the high Net Revenues reported to us was $2,389,639, and the low was $540,712.
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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.
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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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- "Payroll" is defined as the cost of hourly employees, management labor, and manager salary or bonus payments, but does not include owner salary or draw.
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 Net Revenues' is calculated by summing the Net Revenues of included franchisees and dividing that sum by the number of stores. Net Revenues include all revenues generated from business conducted at the store, including the sale of food items. However, Net Revenues do not include sales tax that is separately stated when the customer is charged, or documented refunds, chargebacks, credits, and allowances given to customers in good faith.
For the 2023 calendar year, the highest Net Revenues reported to Amorino was $1,972,908, and the lowest was $424,199. In 2024, the highest Net Revenues reported was $2,389,639, and the lowest was $540,712.
It is important to note that the financial performance representation in the FDD does not contain complete information regarding costs associated with starting and operating an Amorino store. The data presented for 2024 is for established stores open and operating for at least 12 months as of December 31, 2024, and the data for 2023 is for stores open and operating for at least 12 months as of December 31, 2023. Amorino does not make any financial performance representations regarding stores operating as a non-traditional location. A prospective franchisee should conduct their own independent investigation to determine whether the franchise may be profitable for them.