Who bears the expense of an Amorino franchisee's participation in loyalty programs?
Amorino Franchise · 2025 FDDAnswer from 2025 FDD Document
| Store Opening Promotional Fee | $5,000 for a Traditional Store and Kiosk; $3,000 for a Mobile Structure outlet | Due prior to the opening of your Store | You must provide Amorino with written evidence that you have spent these minimum amounts for appropriate expenses for the marketing and advertising of the opening of your Store |
|---|---|---|---|
| Costs for Proprietary Products to be sold in Store | 10% to 30% above our wholesale cost | As incurred | You are required to purchase pre- mixed gelato and sorbet, as well as certain beverages, food products, and other ingredients which are produced or manufactured in accordance with our proprietary recipes, specifications, and/or formulas from us, our affiliate 18°, or a designated supplier. |
| Other Related Promotional Costs | Our actual printing costs | As incurred | You are required to participate in any loyalty programs, prize promotions, gift card programs, and/or any other such promotional campaign that the Franchisor designates. Such participation shall be at your own expense. |
Source: Item 6 — OTHER FEES (FDD pages 17–22)
What This Means (2025 FDD)
According to Amorino's 2025 Franchise Disclosure Document, franchisees are responsible for the expenses associated with participating in loyalty programs. Amorino requires franchisees to participate in any loyalty programs, prize promotions, gift card programs, or other promotional campaigns that the franchisor designates.
This means that if Amorino implements a loyalty program across its franchise system, franchisees must participate and bear the costs. These costs could include discounts offered to loyalty program members, the cost of printing promotional materials, or any technology or administrative fees associated with running the program.
For a prospective Amorino franchisee, this highlights the importance of understanding potential marketing expenses and the degree of control they have over promotional activities. While participation in franchisor-led programs can benefit from brand recognition and coordinated marketing efforts, franchisees need to budget for these mandatory expenses. It would be prudent for a potential franchisee to inquire about the details of any existing or planned loyalty programs, including the estimated costs and potential benefits, to assess the financial impact on their business.