What is excluded from 'Net Revenues' when calculating the financial performance of an Amorino franchise?
Amorino Franchise · 2025 FDDAnswer from 2025 FDD Document
- "Net Revenues" includes all revenues generated from all business conducted at or from a store during the Calendar Year, including amounts received from the sale of food items. "Net Revenues" does not include the amount of any applicable sales tax imposed by any federal, state, municipal or other governmental authority if such taxes are stated separately when the customer is charged, and franchisee pays such amounts as and when due to the appropriate taxing authority.
Also excluded from Net Revenues are the amount of any documented refunds, chargebacks, credits and allowances given to customers in good faith pursuant to our standard procedures for issuing such refunds.
Source: Item 19 — FINANCIAL PERFORMANCE REPRESENTATIONS (FDD pages 68–73)
What This Means (2025 FDD)
According to Amorino's 2025 Franchise Disclosure Document, "Net Revenues" include all revenues generated from business conducted at the store, including the sale of food items. However, certain items are excluded from this calculation. Specifically, the amount of any applicable sales tax imposed by any governmental authority (federal, state, municipal, or other) is excluded, provided that these taxes are stated separately when the customer is charged and the franchisee pays these amounts to the appropriate taxing authority when due.
In addition to sales taxes, Amorino also excludes the amount of any documented refunds, chargebacks, credits, and allowances given to customers in good faith. These must be issued pursuant to Amorino's standard procedures for issuing such refunds to be excluded from the net revenue calculation.
Understanding what constitutes "Net Revenues" is crucial for prospective Amorino franchisees, as this figure is used to calculate various financial performance metrics, such as the average gross margin, payroll percentage, occupancy costs, and other expenses. By excluding sales taxes and legitimate customer refunds, Amorino aims to provide a clearer picture of the actual revenue generated from the sale of its products, which is essential for assessing the financial viability of the franchise.