What is included in the definition of 'Interest Expense' for an Amorino franchise?

According to Amorino's 2025 Franchise Disclosure Document, 'Interest Expense' is defined as financing charges for any outside bank loans being paid by the franchisee to their lender of choice. The average Interest Expense presented in the document is determined by taking the sum of included franchisees' Interest Expense and dividing it by 236. The percentage is calculated by dividing the average Interest Expense by Average Net Revenues.

This definition is important for prospective franchisees as it clarifies what costs are included when Amorino presents financial performance data related to interest expenses. Understanding this definition allows franchisees to accurately compare their own potential or actual interest expenses with the averages provided in Item 19 of the FDD. This can help in assessing the financial viability and profitability of their Amorino franchise.

It is important to note that the interest expense will vary based on the amount and kind of financing a franchisee obtains to establish their Amorino store. Amorino recommends that franchisees make their own independent investigation to determine whether the franchise may be profitable to them and suggests consulting with a financial advisor or personal accountant concerning financial projections and applicable taxes.