How does Amorino determine the amount of payments due under the Franchise Agreement?

According to Amorino's 2025 Franchise Disclosure Document, Amorino determines the amount of payments due under the Franchise Agreement and provides a notice (a "Fee Notice") to the franchisee, stating the fees due and the due date. If a franchisee disagrees with the amount in the Fee Notice, they have three business days to provide written notice of the disagreement with supporting evidence. Failure to provide timely notice confirms the accuracy of the Fee Notice and the obligation to pay. On each due date, Amorino will transfer the undisputed amount of fees from the franchisee's operating account.

Franchisees are required to maintain an operating account for all payments and must participate in Amorino's electronic funds transfer program, authorizing Amorino to use a pre-authorized bank draft system. Sufficient funds must be available in the operating account by the due date. However, Amorino retains the right to require payment by another method, as specified in writing.

If payments are not received by the due date, interest accrues at a rate of 18% per annum or the maximum lawful interest rate, whichever is lower. The franchisee is also responsible for a $50 nonsufficient funds charge, which increases to $100 for any second or subsequent such charge within a 12-month period, as well as reimbursement for all other expenses incurred by Amorino due to insufficient funds. Amorino may apply payments to any amount owed, regardless of any designation accompanying the payment, and acceptance of partial payments does not waive Amorino's right to full payment.

Furthermore, franchisees must reimburse Amorino for all costs and expenses incurred to enforce the terms of the Franchise Agreement, including collection agency fees, court costs, expert witness fees, discovery costs, and reasonable attorneys' fees, along with interest charges on these amounts.