Besides fees, what other costs might Amorino seek reimbursement for from a franchisee?
Amorino Franchise · 2025 FDDAnswer from 2025 FDD Document
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ITEM 6 OTHER FEES
| 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. | | Interest on Late Payments | 18% per year or the maximum percentage permitted by law(6) | Continues to accrue until paid. | Any payment or other amount owed to us under the franchise agreement or any other agreement will bear interest, compounded monthly beginning on the day after the due date. | | Post-Termination Non-Compliance Delay Fee | $500 | Each day of non-compliance | With respect to the de-branding requirements and other post- termination obligations, you must pay a delay fee of $500 for each day of continued non-compliance. | | Nonsufficient Funds Charge | $50 for first offense; $100 for subsequent offenses within 12 months period, plus any expenses | As incurred | In addition to the charge, you must reimburse the Franchisor for costs and expenses incurred due to your nonpayment. | | Reimbursement of | Our actual costs | On demand | You must reimburse us for the cost of | | Monies Paid by | | | any payments we make on your | | Franchisor | | | behalf. | | Audit Expenses of | Cost of audit, | Expenses as | |
| 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. |
| Interest on Late Payments | 18% per year or the maximum percentage permitted by law(6) | Continues to accrue until paid. | Any payment or other amount owed to us under the franchise agreement or any other agreement will bear interest, compounded monthly beginning on the day after the due date. |
| Post-Termination Non-Compliance Delay Fee | $500 | Each day of non-compliance | With respect to the de-branding requirements and other post termination obligations, you must pay a delay fee of $500 for each day of continued non-compliance. |
| Nonsufficient Funds Charge | $50 for first offense; $100 for subsequent offenses within 12 months period, plus any expenses | As incurred | In addition to the charge, you must reimburse the Franchisor for costs and expenses incurred due to your nonpayment. |
Source: Item 6 — OTHER FEES (FDD pages 17–22)
What This Means (2025 FDD)
According to Amorino's 2025 Franchise Disclosure Document, franchisees may be subject to several costs for which Amorino may seek reimbursement. These include costs for proprietary products, other promotional costs, interest on late payments, and a post-termination non-compliance delay fee of $500 per day. Additionally, franchisees may incur a nonsufficient funds charge of $50 for the first offense and $100 for subsequent offenses within a 12-month period, along with reimbursement for any expenses Amorino incurs due to the nonpayment.
Amorino may also seek reimbursement for monies it paid on behalf of the franchisee, the cost of audits, travel and related expenses of an independent certified public accountant, and 4% of business interruption insurance proceeds received by the franchisee. Furthermore, franchisees are responsible for covering Amorino's attorneys' fees, court costs, and litigation expenses if Amorino has to take legal action to enforce its rights under the franchise agreement.
Franchisees must also pay all taxes related to the ownership and operation of the franchised business. If Amorino directly pays any of these taxes, the franchisee must reimburse Amorino. Additionally, franchisees are required to indemnify Amorino, its subsidiaries, affiliates, officers, directors, managers, members, partners, shareholders, employees, and independent contractors against all claims arising from the franchisee's ownership, operation, or occupation of the store, including attorney's fees for defending against such claims.
Finally, Amorino may require franchisees to purchase imported products at a higher price to cover transportation costs, import duties, and the costs of managing a local inventory. Amorino also reserves the right to make payments to third parties if a franchisee fails to meet their obligations and then seek reimbursement from the franchisee, in addition to any fees, costs, and interest that may accrue.