Does the estimated initial investment for an Amorino franchise include security deposits for utilities, landlord, and equipment lessors?
Amorino Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Expenditure | Amount | Method of Payment | When Due | To Whom Payment is to be Made |
|---|---|---|---|---|
| Initial | $30,000 | Lump Sum | Upon signing the | Us |
| Franchise fee: | Franchise | |||
| Traditional | Agreement | |||
| Store(Note 9) | . | |||
| Architect's Fees, Engineer's Fees, Permits | $15,000 to $45,000 | As Arranged between you and applicable third party | As incurred | Your Architect(Note 10), Engineer(Note 10), Relevant Entity requiring the Permits |
| Legal Fees (lease negotiation, zoning and township/ municipality matters) | $3,000 to $12,000 | As Arranged between you and applicable third party | As incurred | Your Attorney(Note 10) |
| Real Property: Lease Security Deposit and any required utility deposits(Note 2), (Note 5) | $5,000 to $45,000 | Lump Sum | Upon signing the lease and upon contracting with relevant utility company | Landlord; Utility Company |
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 22–32)
What This Means (2025 FDD)
According to Amorino's 2025 Franchise Disclosure Document, the estimated initial investment does include security deposits for utilities, the landlord, and equipment lessors. The amount for these deposits is estimated to range from $5,000 to $45,000. These security deposit amounts can vary significantly based on the specific terms of the real property lease, equipment leases, the requirements of the utility companies, and the franchisee's credit rating.
This initial investment component is a one-time, lump sum payment due upon signing the lease and contracting with the relevant utility company. The payment is made directly to the landlord and the utility company. It is important for prospective Amorino franchisees to carefully review their lease agreements and utility contracts to understand the specific deposit requirements for their location, as these can substantially impact the total initial investment.
Prospective franchisees should also be aware that these figures are estimates, and actual costs may vary. It is advisable to consult with experienced professionals, such as real estate attorneys and financial advisors, to assess the potential deposit requirements and negotiate favorable lease terms. Understanding these costs upfront is crucial for accurate financial planning and ensuring sufficient capital is available to launch the Amorino franchise.