What is included in the definition of 'Net Revenues' for an Amorino store?
Amorino Franchise · 2025 FDDAnswer from 2025 FDD Document
| 15.7% | $137,520 | 21.0% |
Notes to Part II
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- "Net Revenues" includes all revenues generated from all business conducted at or from a store during the Calendar Year, including amounts received from the sale of food items. "Net Revenues" does not include the amount of any applicable sales tax imposed by any federal, state, municipal or other governmental authority if such taxes are stated separately when the customer is charged, and franchisee pays such amounts as and when due to the appropriate taxing authority. Also excluded from Net Revenues are the amount of any documented refunds, chargebacks, credits and allowances given to customers in good faith pursuant to our standard procedures for issuing such refunds. The "Average Net Revenues" is determined by taking the sum of included franchisees Net Revenues and dividing it by the number of stores. For the 2023 Calendar Year, the high Net Revenues reported to us was $1,972,908 and the low was $424,199. For the 2024 Calendar Ye
Source: Item 19 — FINANCIAL PERFORMANCE REPRESENTATIONS (FDD pages 68–73)
What This Means (2025 FDD)
According to Amorino's 2025 Franchise Disclosure Document, 'Net Revenues' encompasses all revenues generated from business conducted at or from an Amorino store during the calendar year. This includes all amounts received from the sale of food items. However, 'Net Revenues' does not include sales tax if the tax is separately stated when the customer is charged, and the franchisee pays those taxes to the appropriate authority.
Additionally, the definition of 'Net Revenues' excludes any documented refunds, chargebacks, credits, and allowances given to customers in good faith, following Amorino's standard procedures for issuing such refunds. The FDD also explains that the 'Average Net Revenues' is calculated by summing the Net Revenues of included franchisees and dividing by the number of stores.
For prospective Amorino franchisees, understanding this definition is crucial because 'Net Revenues' serves as the basis for calculating various financial metrics presented in Item 19, such as COGS percentage, gross margin, and other expense ratios. These metrics are essential for evaluating the financial performance and profitability of an Amorino franchise. The FDD notes that for the 2023 calendar year, the high Net Revenues reported was $1,972,908 and the low was $424,199. For the 2024 calendar year, the high Net Revenues reported was $2,389,639, and the low was $540,712.
It is important for potential franchisees to note what is included and excluded from 'Net Revenues' to accurately interpret the financial performance representations provided in the FDD and to make informed decisions about investing in an Amorino franchise. Franchisees should also be aware that their individual results may differ, and there is no assurance they will achieve the same level of sales.