Does the Amorino franchise agreement specify that the initial franchise fee is not refundable?
Amorino Franchise · 2025 FDDAnswer from 2025 FDD Document
- A. Initial Franchise Fee. Upon execution of this Agreement, you shall pay us an initial franchise fee in the amount and according to the payment schedule specified in the Data Sheet, with the amount of such fee based on the type of Store you will open (i.e., traditional store, kiosk outlet, or mobile outlet). The initial franchise fee, when paid, shall be deemed fully earned by Amorino and is not refundable.
Source: Item 22 — CONTRACTS (FDD pages 80–81)
What This Means (2025 FDD)
According to Amorino's 2025 Franchise Disclosure Document, the initial franchise fee is deemed fully earned upon payment and is not refundable. This means that once a prospective franchisee pays the initial franchise fee to Amorino, those funds are non-refundable, regardless of whether the franchise agreement is ultimately executed or the store opens.
This is a fairly standard practice in the franchise industry, as the initial fee is intended to compensate the franchisor for the initial services and expenses incurred in evaluating and setting up a new franchisee. These services can include site selection assistance, training, and providing operations manuals.
Prospective Amorino franchisees should carefully consider this non-refundable aspect of the initial franchise fee and conduct thorough due diligence before signing the franchise agreement and paying the fee. Understanding the services Amorino provides in exchange for the fee and assessing the likelihood of successfully opening a franchise location are crucial steps.