From whom must an Amorino franchisee purchase furniture, equipment, casework, and restaurant supplies?
Amorino Franchise · 2025 FDDAnswer from 2025 FDD Document
vices from Approved or Designated Suppliers
You must purchase all furniture, equipment, casework, and restaurant supplies from our approved third-party vendor, and/or our affiliates Amorino Trading or -18°. If we so require, you must maintain a maintenance agreement with the applicable manufacturers for the term of the franchise.
We may from time to time inspect and evaluate the facilities and products of any approved supplier and revoke its general approval of particular products or suppliers when we determine, in our sole discretion, that such products or suppliers no longer meet our standards. We will provide the Store with written notice of such revocation, at which time (or at the time set forth in the notice) the Store must stop selling any disapproved products and stop purchasing any products from any disapproved supplier.
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.
You must spend a minimum of .5% of your annual gross revenue on seasonal and holiday decorations to be displayed in and around your Store, which decorations must comply our standards. You must provide us with evidence of the money you have paid to third parties for these decorations.
We estimate that, for your Store, you will be required to purchase 100% of your consumables, and 30% of your other purchases, from our affiliates, Amorino Trading or -18.
In the future, we may change and designate different approved suppliers, and we may require every Store to purchase from different approved suppliers. We do not allow a Store to suggest alternative suppliers, and for that reason, there is no procedure for a Store to propose, or for us to approve, different alternative suppliers. We do not provide material benefits (including, for example, renewal or granting additional franchises) to a franchisee based on the franchisee's purchase of
Amorino Unit Franchise Disclosure Document –April 24, 2025 Page 32 of 80
particular products or services or use of designated or approved suppliers.
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, franchisees are required to purchase furniture, equipment, casework, and restaurant supplies from specific, approved sources. Specifically, these items must be purchased from Amorino's approved third-party vendor, and/or their affiliates Amorino Trading or -18°. Amorino retains the right to inspect and evaluate these suppliers and can revoke approval if they no longer meet Amorino's standards. Franchisees will receive written notice of any such changes and must cease purchasing from disapproved suppliers.
This requirement has several implications for prospective Amorino franchisees. First, it limits their ability to shop around for the best prices on these essential items, as they are restricted to purchasing from Amorino's approved vendors. Second, since Amorino's officers own interests in the affiliated companies Amorino Trading and -18, these affiliates may derive revenue from franchisee purchases. The FDD estimates that franchisees will be required to purchase 100% of their consumables, and 30% of their other purchases, from Amorino Trading or -18.
Amorino also requires franchisees to purchase many products related to the initial establishment of their store and ongoing operations from their affiliate -18°, which is the 100% owner of Amorino USA, and from their affiliate Amorino Trading, LLC, which is 100% owned by Amorino USA. Examples of items franchisees are required to purchase from -18° include furniture, fixtures, signage, lighting, equipment, restaurant supplies, uniforms, decorations, ingredients, and products to be sold at the store. This arrangement ensures that Amorino maintains control over the quality and consistency of its brand, but it also means that franchisees may not have the flexibility to negotiate prices or choose alternative suppliers.
In 2024, Amorino's affiliates derived $5,826,042.57 in revenue from the sale of products and supplies to franchisees. Amorino's total revenue for 2024 was $37,241, none of which was from required purchases and leases. The price franchisees must pay for the required products, including gelato, is marked up from the wholesale price. Although Amorino does not charge a royalty, they markup the cost of the products which franchisees must purchase from them or their affiliates so that their owners may derive revenue that would otherwise be charged as a royalty based on sales. Prospective franchisees should carefully consider these purchasing restrictions and their potential impact on their profitability.