What charges are included in 'Occupancy' costs for an Amorino franchise?

According to Amorino's 2025 Franchise Disclosure Document, 'Occupancy' costs encompass all charges mandated by the lease agreement. This includes the base rent, which is the fixed amount paid regularly for the space, as well as percentage rent, which is a variable amount based on a percentage of the store's revenue. Additionally, occupancy costs cover common area maintenance (CAM) charges, which are fees for maintaining shared spaces such as parking lots, hallways, and restrooms.

For a prospective Amorino franchisee, understanding these occupancy costs is crucial for financial planning. The base rent provides a predictable expense, while percentage rent introduces variability tied to sales performance. CAM charges can fluctuate based on the maintenance needs of the property. Accurately estimating these costs is essential for projecting profitability and managing cash flow.

Item 19 of the FDD provides financial performance representations that include average occupancy costs for existing Amorino stores. While these averages can be a useful benchmark, the FDD also cautions that rent can vary significantly depending on the location, size, and condition of the property. Therefore, franchisees should conduct their own independent investigation and consult with a financial advisor to determine realistic occupancy costs for their specific location.