What must an Amorino franchisee do to meet reasonably anticipated consumer demand?
Amorino Franchise · 2025 FDDAnswer from 2025 FDD Document
Each Store must purchase and maintain an inventory of Proprietary Products as needed to meet reasonably anticipated consumer demand. A Store must purchase our gelato and sorbet from us, from our affiliate Amorino Trading, from our affiliate -18°, or from a producer, manufacturer, distributor or supplier designated or approved by us. You must purchase all products which bear any of our trademarks solely and exclusively from us or our affiliate -18° or from a producer, manufacturer, distributor or supplier we designate or approve. Amorino Trading and -18 are suppliers in which our officers owns an interest.
We may specify (i) certain beverages, food products and other ingredients, which are produced or manufactured according to our trade secrets, proprietary recipes, specifications and/or formulas, (ii) products which bear our trademarks, and (iii) certain packaging, POS Systems, computer hardware, software, modems and peripheral equipment or other products, supplies, services and equipment. You may buy these items only from us or from our designated suppliers (which may, in the future, include -18° or any of our affiliates). If the Store purchase any items from us or one of our affiliates, we or they may derive profits from these purchases.
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, each store must purchase and maintain an inventory of Proprietary Products as needed to meet reasonably anticipated consumer demand. This includes purchasing Amorino's gelato and sorbet from Amorino itself, its affiliates Amorino Trading and -18°, or from a producer, manufacturer, distributor, or supplier designated or approved by Amorino.
The FDD specifies that all products bearing Amorino's trademarks must be purchased solely and exclusively from Amorino, its affiliate -18°, or from a designated or approved producer, manufacturer, distributor, or supplier. This ensures brand consistency and quality control across all franchise locations. Amorino's officers own interests in the affiliated companies that supply goods or services to its franchise system, including Amorino Trading and -18.
This requirement ensures that franchisees maintain adequate stock levels to satisfy customer demand, but it also limits their flexibility in sourcing products from potentially cheaper or more convenient suppliers. A significant portion of a franchisee's expenditures, specifically 40% to 60% of initial establishment purchases (excluding real estate lease costs) and 20% to 40% of ongoing annual operating expenses (excluding real estate lease costs), will be for goods and services subject to these sourcing restrictions, with many of these expenditures directed towards Amorino's affiliates, -18° and Amorino Trading, LLC.
Prospective franchisees should carefully consider the implications of these required purchases, as they directly impact profitability and operational flexibility. Understanding the pricing structure and supply chain logistics of these proprietary products is crucial for assessing the financial viability of an Amorino franchise.