Can Amorino change and designate different approved suppliers in the future?
Amorino Franchise · 2025 FDDAnswer from 2025 FDD Document
In the future, we may change and designate different approved suppliers, and we may require every Store to purchase from different approved suppliers. We do not allow a Store to suggest alternative suppliers, and for that reason, there is no procedure for a Store to propose, or for us to approve, different alternative suppliers.
We may from time to time inspect and evaluate the facilities and products of any approved supplier and revoke its general approval of particular products or suppliers when we determine, in our sole discretion, that such products or suppliers no longer meet our standards. We will provide the Store with written notice of such revocation, at which time (or at the time set forth in the notice) the Store must stop selling any disapproved products and stop purchasing any products from any disapproved supplier.
For a traditional store, we estimate that approximately 40% to 60% of your expenditures for purchases (excluding costs relating to your real estate lease) in establishing your Store and approximately 20% to 40% of your total annual operating expenses (excluding costs relating to your real estate lease) on an ongoing basis will be for goods and services which are subject to sourcing restrictions (that is, for which suppliers must be approved by us, or which must meet our standards or specifications). Many of such expenditures are to be made to our affiliates -18° and/or Amorino Trading, LLC.
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 32–36)
What This Means (2025 FDD)
According to Amorino's 2025 Franchise Disclosure Document, Amorino has the right to change and designate different approved suppliers in the future, requiring all stores to purchase from these new suppliers. The FDD states that Amorino does not allow franchisees to suggest alternative suppliers, and there is no procedure for a store to propose or for Amorino to approve different alternative suppliers.
This means that as a franchisee, you are obligated to purchase goods and services from suppliers approved or designated by Amorino. Amorino may inspect and evaluate these suppliers and can revoke approval if they no longer meet Amorino's standards. If a supplier is disapproved, Amorino will provide written notice, and the franchisee must stop selling disapproved products and stop purchasing from the disapproved supplier.
For a traditional store, the FDD estimates that 40% to 60% of initial expenditures (excluding real estate lease costs) and 20% to 40% of ongoing annual operating expenses (excluding real estate lease costs) will be for goods and services subject to these sourcing restrictions. Many of these expenditures are directed towards Amorino's affiliates, -18° and Amorino Trading, LLC. This gives Amorino significant control over the franchisee's supply chain and costs, and it is important to consider the potential impact of these required purchases on the profitability of the franchise.