What costs are included in the 'Advertising' definition for an Amorino franchise?

According to Amorino's 2025 Franchise Disclosure Document, 'Advertising' is defined as the cost of local store marketing efforts. This definition is important for prospective franchisees to understand because it clarifies what expenses are included when Amorino calculates average advertising costs in their financial performance representations. The average advertising costs are determined by summing the advertising costs of included franchisees and dividing by the number of stores. The percentage is determined by dividing the advertising costs by average net revenues.

Understanding this definition allows potential franchisees to better interpret the financial data presented in Item 19 of the FDD. By knowing that 'Advertising' specifically refers to local store marketing efforts, franchisees can more accurately compare their own potential advertising expenses to the averages provided by Amorino. This can aid in budgeting and financial planning for their franchise.

It is important to note that this definition focuses solely on local store marketing. National advertising campaigns or other broader marketing initiatives may be accounted for differently, and it is advisable for prospective franchisees to clarify with Amorino how these other marketing expenses are handled and whether they are required to contribute to any national advertising funds.