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

According to Amorino's 2025 Franchise Disclosure Document, 'COGS' is defined as all direct costs including gelato, other products, and dry goods costs. This definition is important for prospective franchisees as it provides clarity on what expenses are factored into the Cost of Goods Sold calculation, which directly impacts the gross margin and overall profitability of the Amorino franchise. Understanding these costs is essential for accurate financial planning and performance assessment.

The FDD also states that the average COGS presented is determined by taking the sum of included franchisees costs of goods sold and dividing it by the number of stores. The percentage was determined by dividing the average COGS by Average Net Revenues. This calculation method provides a benchmark for franchisees to compare their own COGS against the average performance of other Amorino locations.

For the 2023 calendar year, the average COGS for Amorino franchises was $345,170, representing 31.9% of Net Revenues. The median COGS for the same period was $208,165, also representing 31.8% of Net Revenues. These figures offer valuable insights into the typical cost structure of an Amorino franchise and can help potential franchisees evaluate the financial viability of the business.