Are excise taxes collected from customers included in the Gross Revenue calculation for Amorino?
Amorino Franchise · 2025 FDDAnswer from 2025 FDD Document
performed at the Franchised Location or elsewhere, and all other income of every kind and nature related to the Franchised Business, less any authorized discounts (collectively, "Gross Revenue"). Revenue collected from customers in the form of sales tax, federal, state, county, or city taxes, excise tax, or other similar tax collected from customers that you owe to governmental entities must be reported to us, but is excluded from Gross Revenue for the purpose of computing the royalty fee.
Source: Item 22 — CONTRACTS (FDD pages 80–81)
What This Means (2025 FDD)
According to Amorino's 2025 Franchise Disclosure Document, revenue collected from customers for excise taxes is excluded from the Gross Revenue calculation for the purpose of computing the royalty fee. Amorino franchisees must still report these taxes to Amorino, but they do not pay royalties on the excise tax portion of their revenue.
This is a benefit for franchisees, as it lowers the royalty fees they must pay to Amorino. Gross Revenue is defined as all income related to the franchised business, so this exclusion specifically reduces the revenue amount used to calculate royalty fees.
Franchisees should be aware that while excise taxes are excluded from Gross Revenue for royalty calculations, they are still responsible for collecting and remitting these taxes to the appropriate governmental entities. Additionally, Amorino may audit franchisee records to ensure accurate reporting of Gross Revenue and taxes.