If an Amorino franchisee is an individual, what tax schedules must they submit?
Amorino Franchise · 2025 FDDAnswer from 2025 FDD Document
In addition, upon your receipt of Amorino's request, you will submit a copy of your previous year's Accounting Periods and a copy of your federal and state income tax returns for the previous year; provided, however, that if you are an individual rather than a Business Entity, you may submit only those schedules to your personal tax returns which reflect the revenues and expenses of the Franchised Business.
Source: Item 22 — CONTRACTS (FDD pages 80–81)
What This Means (2025 FDD)
According to Amorino's 2025 Franchise Disclosure Document, if a franchisee is an individual, they are not required to submit their entire personal tax return to Amorino. Instead, they may submit only those schedules to their personal tax returns which reflect the revenues and expenses of the Franchised Business. This is a common practice in franchising, as it protects the franchisee's personal financial information while still allowing the franchisor to monitor the financial performance of the franchise.
This requirement is part of the broader obligations Amorino franchisees have to provide financial information to the company. Franchisees must submit monthly financial statements, annual profit and loss statements, and year-end balance sheets. Amorino also has the right to audit the franchisee's books, records, accounts, and business tax returns at any time.
Prospective franchisees should be aware of these reporting requirements and ensure they have the accounting systems in place to comply. It is also important to understand what specific information is required in the financial statements and tax schedules, and to seek professional advice if needed. This ensures transparency and accountability in the financial operations of the Amorino franchise.