When must an Amorino franchisee pay the renewal fee?
Amorino Franchise · 2025 FDDAnswer from 2025 FDD Document
| Independent Audit Made by Us Business Interruption Proceeds Fee | plus travel and related expenses of independent certified public accountant 4% of proceeds of business interruption insurance received by franchisee | incurred; cost of audit payable upon receipt of audit report. When proceeds are received. | Payable to the Franchisor when Franchisee is closed as a result of a casualty or other event that is covered by your business interruption insurance policy. |
|---|---|---|---|
| Renewal Fee | 25% of our then current initial franchise fee, for each five years of renewal | Thirty days before the expiration of the term of your existing agreement | Thirty days before the expiration of the term of your existing agreement, you must pay this renewal fee, and at the same time, you must sign an amendment, stipulation, or new franchise agreement reflecting the renewal term and the terms of our then current form of franchise agreement |
Source: Item 6 — OTHER FEES (FDD pages 17–22)
What This Means (2025 FDD)
According to Amorino's 2025 Franchise Disclosure Document, a franchisee must pay the renewal fee thirty days before the expiration of the current franchise term. The renewal fee is 25% of Amorino's then-current initial franchise fee for each five-year renewal period.
In addition to paying the renewal fee, the franchisee must also sign an amendment, stipulation, or new franchise agreement. This new agreement will reflect the renewal term and the terms of Amorino's then-current form of franchise agreement. This indicates that the terms of the franchise agreement may change upon renewal, so franchisees should carefully review the new agreement.
It is important for prospective franchisees to understand the renewal terms, as failing to meet these obligations can result in the termination of the franchise agreement. Franchisees should also factor in the renewal fee when projecting the long-term costs and profitability of their Amorino franchise.