What is included in the definition of 'COGS' (Cost of Goods Sold) for an Amorino franchise?
Amorino Franchise · 2025 FDDAnswer from 2025 FDD Document
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- "COGS" is defined as all direct costs including gelato, other products, and dry goods costs.
The average presented above is determined by taking the sum of included franchisees costs of goods sold and dividing it by the number of stores.
The percentage was determined by dividing the average COGS by Average Net Revenues.
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- "Average Gross Margin" is defined as Average Net Revenues less Total Average Cost of Goods Sold.
Source: Item 19 — FINANCIAL PERFORMANCE REPRESENTATIONS (FDD pages 68–73)
What This Means (2025 FDD)
According to Amorino's 2025 Franchise Disclosure Document, 'COGS' or Cost of Goods Sold, is defined as all direct costs including gelato, other products, and dry goods costs. This definition is important for prospective franchisees to understand because it directly impacts the gross margin and profitability of their Amorino store.
Specifically, the FDD indicates that for the 2023 calendar year, the average COGS for Amorino stores was $345,170, representing 31.9% of net revenues. The median COGS for that year was $208,165, also representing 31.8% of net revenues. These figures provide a benchmark for franchisees to compare their own costs against and to understand how efficiently they are managing their inventory and purchasing.
Understanding what comprises COGS allows a franchisee to effectively manage expenses and improve profitability. By monitoring these direct costs, franchisees can make informed decisions about pricing, inventory levels, and vendor negotiations. The FDD also clarifies that 'Average Gross Margin' is defined as Average Net Revenues less Total Average Cost of Goods Sold, further emphasizing the importance of managing COGS to achieve a healthy gross margin.