What is a 'gross basis' lease for an Amorino franchise location?
Amorino Franchise · 2025 FDDAnswer from 2025 FDD Document
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- For any of the Store types, you must own a location approved by us or you must lease a location approved by us. Whether you own or lease, you must improve, construct, remodel and decorate the space to our specifications. These estimates assume that your location will be a leased, unimproved, unfinished retail store-type unit. A Traditional Store typically occupies 500 to 1,500 square feet of commercial space. A Kiosk Outlet typically occupies 100 to 500 square feet of commercial space. These POS types typically are located on a major thoroughfare, or in or adjacent to a retail strip mall or shopping center, or in an urban storefront. A Mobile Structure outlet typically occupies 60 to 100 square feet of commercial space, and is typically located within an
enclosed shopping mall, college campus, or other closed market environment. Your lease is subject to our approval and must contain certain terms we require, as described in your franchise agreement. Rents may range from $20.00 to $200.00 per square foot per year, depending upon factors such as size, condition and location of the leased premises. Your rent will generally be a fixed base rent plus common maintenance, taxes and insurance. However, some leases will be on a "gross basis" which would typically include all common maintenance, taxes and insurance. Your lease may also provide for percentage rent, which will be a percentage of your sales at the Store.
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 22–32)
What This Means (2025 FDD)
According to Amorino's 2025 Franchise Disclosure Document, a 'gross basis' lease is a type of lease agreement where the rent typically includes all common maintenance, taxes, and insurance expenses related to the property. In contrast to a fixed base rent plus additional charges for maintenance, taxes, and insurance, a gross lease simplifies the payment structure for the franchisee.
For a prospective Amorino franchisee, understanding the lease terms is crucial because it directly impacts operating costs. With a gross lease, the franchisee pays a single, all-inclusive rent amount, which can make budgeting easier and more predictable. However, it's important to note that the base rent under a gross lease may be higher than the base rent in a lease where these costs are billed separately.
Amorino also notes that leases may include percentage rent, which is a percentage of the store's sales. The FDD advises that rents for an Amorino location can range from $20.00 to $200.00 per square foot per year, depending on factors like the size, condition, and location of the premises. Therefore, franchisees should carefully evaluate the terms of their lease agreement to understand their total rental obligations and how they might fluctuate based on sales performance or other factors.