What is included in the 'Payroll' definition for an Amorino franchise?

According to Amorino's 2025 Franchise Disclosure Document, the definition of 'Payroll' includes specific labor-related costs. It encompasses the cost of hourly employees, management labor, and manager salary or bonus payments. However, it explicitly excludes the owner's salary or draw. This definition is important for prospective franchisees as they evaluate the financial performance representations provided in Item 19 of the FDD.

Understanding what is included and excluded from the 'Payroll' definition is crucial for accurately assessing the potential profitability of an Amorino franchise. By excluding the owner's salary or draw, the financial performance data focuses on the costs associated with other employees, providing a clearer picture of operational labor expenses. This allows potential franchisees to better understand the labor costs they may incur when operating their own Amorino store.

The FDD also states that the average payroll presented is determined by taking the sum of included franchisees' labor costs and dividing it by the number of stores. The percentage is determined by dividing the average labor cost by average net revenues. This calculation provides a benchmark for franchisees to compare their own payroll expenses against the average performance of other Amorino stores.

Prospective franchisees should carefully consider the 'Payroll' definition and how it impacts their own financial projections. It is essential to factor in the owner's desired salary or draw when evaluating the overall financial viability of the franchise. Additionally, franchisees should analyze their local labor market and anticipated staffing needs to determine if the average payroll figures presented in the FDD are realistic for their specific location.