What was the average occupancy cost for Amorino stores in 2023?
Amorino Franchise · 2025 FDDAnswer from 2025 FDD Document
Disclosure Document –April 24, 2025 Page 68 of 80*
| Payroll | $265,289 | 24.5% | 9/16 | $93,334 | 14.3% | |---|---|---|---|---|---| | Occupancy | $138,706 | 12.8% | 10/16 | $89,196 | 13.6% | | Marketing & | $3,226 | 0.3% | 9/16 | $3,183 | 0.5% | | Advertising | | | | | | | Other | $158, 849 | 14.7% | 9/16 | $122,926 | 18.8% | | Expenses | | | | | | | Interest | $8, 183 | 0.8% | 10/16 | $16,827 | 2.6% | | Expense | | | | | | | Depreciation | $19, 551 | 1.8% | 10/16 | 0 | 0.0% | | & Amort. | | | | | | | Taxes | $7,155 | 0.7% | 10/16 | $626 | 0.1% | | Total | $600, 959 | 55.6% | 9/16 | $326,093 | 49.8% | | Expense | | | | | | | Net Income | 134, 504 | 12.4% | 9/16 | $120,067 | 18.3% | | Add backs | | | | | | | to Net | | | | | | | Income to | | | | | | | Calculate | | | | | | | EBITDA: | | | | | | | Interest | $8, 183 | | 10/16 | $16,827 | 2.6% | | Expense | | | | | | | Depreciation | $19, 551 | | 10/16 | 0 | 0.0% | | & Amort. | | | | | | | Taxes | $7, 155 | | 10/16 | $626 | 0.1% | | EBITDA | $169, 393 | | 15.7% | $137,520 | 21.0% | ![]
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 occupancy cost for Amorino stores in 2023 was $138,706. This figure represents 12.8% of the average net revenues for these stores. The data is based on 16 included stores, with 10 of those stores performing above the average occupancy cost. The median occupancy cost for these stores was $89,196, representing 13.6% of median net revenues.
Occupancy costs, as defined in the FDD, include all charges imposed under the lease agreements, such as base rent, percentage rent, and common area maintenance charges. This is a significant expense for any retail business, and Amorino franchisees should carefully consider location and lease terms to manage these costs effectively. The FDD notes that rent can vary significantly depending on the location, size, and condition of the property.
The difference between the average and median occupancy costs suggests that some Amorino locations have substantially higher occupancy expenses than others, which could be due to factors like prime locations or larger store sizes. Prospective franchisees should investigate potential locations thoroughly and negotiate lease terms carefully to avoid excessive occupancy costs that could impact profitability. Understanding the factors that drive occupancy costs in different locations is crucial for making informed investment decisions.
It's important to remember that these figures are averages and individual results may vary. Amorino explicitly states that there is no assurance that a franchisee will achieve the same financial performance. Prospective franchisees should conduct their own independent investigation and consult with financial advisors to determine if an Amorino franchise is a suitable investment for them.