factual

What are some examples of items that Amorino requires franchisees to purchase from its affiliate -18°?

Amorino Franchise · 2025 FDD

Answer from 2025 FDD Document

We require that you purchase many products related to the initial establishment of your Store and your ongoing operations (including the gelato and sorbet itself) from our affiliate -18°, which is the 100% owner of Amorino USA, and from our affiliate Amorino Trading, LLC, which is 100% owned by Amorino USA. Examples of the items we require you to purchase from our affiliate - 18° include: furniture, fixtures, signage, lighting, equipment, restaurant supplies, uniforms, decorations, ingredients and products to be sold at your Store.

Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 32–36)

What This Means (2025 FDD)

According to Amorino's 2025 Franchise Disclosure Document, franchisees are required to purchase many products from its affiliate -18° for both the initial setup and ongoing operation of their stores. These required purchases from -18° include furniture, fixtures, signage, lighting, equipment, restaurant supplies, uniforms, decorations, ingredients, and products to be sold at the store. Amorino's affiliate -18° is the 100% owner of Amorino USA.

Amorino estimates that for a traditional store, approximately 40% to 60% of the initial expenditures (excluding real estate lease costs) and about 20% to 40% of the total annual operating expenses (also excluding real estate lease costs) will be for goods and services subject to sourcing restrictions. Many of these expenditures are directed towards Amorino's affiliates, -18° and Amorino Trading, LLC.

Franchisees must also purchase all furniture, equipment, casework, and restaurant supplies from Amorino's approved third-party vendor, and/or its affiliates Amorino Trading or -18°. Additionally, franchisees are required to purchase gelato and sorbet from Amorino, its affiliate Amorino Trading, its affiliate -18°, or from a producer, manufacturer, distributor, or supplier designated or approved by Amorino. All products bearing Amorino's trademarks must be purchased solely and exclusively from Amorino or its affiliate -18°, or from a designated or approved supplier.

In 2024, Amorino's affiliates derived $5,826,042.57 in revenue from the sale of products and supplies to franchisees. The price franchisees pay for required products, including gelato, is marked up from the wholesale price. This markup allows Amorino's owners to derive revenue that would otherwise be charged as a royalty based on sales, as Amorino does not charge a royalty fee.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.