factual

If I collect sales tax from customers, must I report it to Amorino?

Amorino Franchise · 2025 FDD

Answer from 2025 FDD Document

Revenue collected from customers in the form of sales tax, federal, state, county, or city taxes, excise tax, or other similar tax collected from customers that you owe to governmental entities must be reported to us, but is excluded from Gross Revenue for the purpose of computing the royalty fee.

Source: Item 22 — CONTRACTS (FDD pages 80–81)

What This Means (2025 FDD)

According to Amorino's 2025 Franchise Disclosure Document, if you collect sales tax from customers, you must report it to Amorino. This includes sales tax, as well as federal, state, county, or city taxes, excise tax, or other similar tax collected from customers that you owe to governmental entities. However, while you must report these taxes to Amorino, they are excluded from your Gross Revenue when calculating royalty fees. This means that while you act as a collection agent for these taxes, you don't pay a percentage of them to Amorino as part of your royalty obligations.

In addition to taxes, the 2025 FDD specifies other items that can be deducted from Gross Revenue. These include the selling price of returned goods, items returned to their source for credit, amounts received on claims for loss or damage (excluding business interruption insurance claims), sales of equipment, transfers of merchandise between Amorino facilities, and gift certificates until they are redeemed. These deductions all serve to reduce the revenue on which Amorino calculates its royalty fee.

Amorino also outlines your responsibility to pay all taxes related to the Franchised Business. This includes sales taxes, use taxes, personal property taxes, real property taxes, and excise taxes. You are expected to pay these taxes promptly when due to the appropriate tax authority. Amorino may elect to collect taxes from you and pay them over to the taxing authority, but unless Amorino makes that election, it remains your responsibility to handle these payments directly.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.