What is the franchisee's obligation regarding the construction, equipping, and improvement of an Amorino store?
Amorino Franchise · 2025 FDDAnswer from 2025 FDD Document
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Franchised Location and Lease
You must acquire a site for the Store that meets our site selection criteria and that we approve. If your Store occupies the space according to a commercial lease, the lease must contain terms that we specify in the Franchise Agreement, which terms are described in Item 11. Although we do require that the lease for your Store contain certain terms, we do not otherwise control or have any affiliation with your landlord. When the Store signs the Franchise Agreement, we will mutually agree on a site selection date which will be the date by which you must have secured a location and signed a lease. You must construct, equip and improve the Store in compliance with our current design standards and trade dress. The Store must purchase and install, at your expense, all millwork and customized seating, fixtures, furnishings, equipment (including a point-of-sale cash register system), decor, and signs from an approved third-party supplier. The kiosk locations shall be constructed in accordance with our current design standards.
Insurance
You must obtain and maintain insurance policies protecting you, and us and such additional
Amorino Unit Franchise Disclosure Document –April 24, 2025 Page 33 of 80
insureds as we may require from time to time, on a primary non-contributory basis. The insurance must be underwritten by insurers licensed and admitted to write coverage in the state in which the Store is located and with a rating of "A" or better.
Such insurance policies shall include, at the minimum, the following policies: (a) "all risk" or "special" property insurance covering all real and personal property and equipment on a replacement costs basis, including business interruption and extra expense insurance;
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 responsible for the construction, equipping, and improvement of their store to meet Amorino's design standards and trade dress. The franchisee must secure a site that meets Amorino's criteria, and the lease must contain terms specified in the Franchise Agreement. Amorino and the franchisee will mutually agree on a site selection date, by which the franchisee must have secured a location and signed a lease.
The franchisee is responsible for purchasing and installing all millwork, customized seating, fixtures, furnishings, equipment (including a point-of-sale cash register system), decor, and signs from an approved third-party supplier. Kiosk locations must also be constructed according to Amorino's design standards. This ensures that all Amorino stores maintain a consistent brand image and customer experience.
Additionally, franchisees must spend a minimum of 0.5% of their annual gross revenue on seasonal and holiday decorations that comply with Amorino's standards. They must also provide evidence of these expenditures to Amorino. This requirement helps maintain the aesthetic appeal of the store and align it with the brand's image during different times of the year. For a traditional store, Amorino estimates that 40% to 60% of the franchisee's expenditures for purchases in establishing the store (excluding real estate lease costs) and approximately 20% to 40% of their total annual operating expenses (excluding real estate lease costs) on an ongoing basis will be for goods and services which are subject to sourcing restrictions.