What costs must an Amorino franchisee reimburse the franchisor for?
Amorino Franchise · 2025 FDDAnswer from 2025 FDD Document
| 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 Monies Paid by Franchisor | Our actual costs | On demand | You must reimburse us for the cost of any payments we make on your behalf. | | Litigation Expenses | Our attorneys' fees, court costs, and litigation expenses | As incurred | We may recover our costs in any action to enforce or defend our rights under the franchise agreement. | | Reimbursement of Taxes paid by Franchisor | Amount of taxes | As incurred | You must pay all taxes relating to your ownership and operation of the franchised business, including any sales, gross receipts, personal property, real property or excise or other tax, levy or assessment, and including any tax that may be assessed on any payments you make to us. If we pay any such taxes directly, you must reimburse us. | | Indemnification | Amount of loss or damages plus costs | As incurred | You must indemnify us, our subsidiaries and affiliates and our/their respective officers, directors, managers, members, partners, | | Independent Audit Made by Us Business Interruption Proceeds Fee | plus travel and related expenses of independent certified public accountant 4% of proceeds of business interruption insurance received by franchisee | incurred; cost of audit payable upon receipt of audit report. When proceeds are received. | Payable to the Franchisor when Franchisee is closed as a result of a casualty or other event that is covered by your business interruption insurance policy. |
We reserve the right to make payments to third parties in the event that you have failed to meet your responsibility to pay your obligations to third parties, and then to seek reimbursement from you in addition to fees, costs, and interest that may accrue.
Source: Item 6 — OTHER FEES (FDD pages 17–22)
What This Means (2025 FDD)
According to Amorino's 2025 Franchise Disclosure Document, franchisees may have to reimburse Amorino for several costs. These reimbursements cover instances where Amorino incurs expenses on the franchisee's behalf or due to the franchisee's actions.
Specifically, franchisees must reimburse Amorino for the actual costs of any payments Amorino makes on their behalf. If a franchisee fails to pay obligations to third parties, Amorino can make payments to those third parties and then seek reimbursement from the franchisee, including fees, costs, and interest. Additionally, if a franchisee's nonpayment results in a nonsufficient funds charge, the franchisee must reimburse Amorino for costs and expenses incurred due to the nonpayment, in addition to the charge itself ($50 for the first offense and $100 for subsequent offenses within a 12-month period).
Franchisees are also responsible for reimbursing Amorino for taxes paid by Amorino that relate to the franchisee's business, and for litigation expenses (attorneys' fees, court costs, and litigation expenses) incurred by Amorino to enforce its rights under the franchise agreement. Furthermore, if a franchisee receives proceeds from business interruption insurance, Amorino is entitled to 4% of those proceeds. Finally, franchisees must indemnify Amorino against claims arising from the franchisee's business operations, including attorney's fees.