When is the Independent Audit Made by Us Business Interruption Proceeds Fee payable to Amorino?
Amorino Franchise · 2025 FDDAnswer from 2025 FDD Document
| Store Opening Promotional Fee | $5,000 for a Traditional Store and Kiosk; $3,000 for a Mobile Structure outlet | Due prior to the opening of your Store | You must provide Amorino with written evidence that you have spent these minimum amounts for appropriate expenses for the marketing and advertising of the opening of your Store |
|---|---|---|---|
| Costs for Proprietary Products to be sold in Store | 10% to 30% above our wholesale cost | As incurred | You are required to purchase pre mixed gelato and sorbet, as well as certain beverages, food products, and other ingredients which are produced or manufactured in accordance with our proprietary recipes, specifications, and/or formulas from us, our affiliate 18°, or a designated supplier. |
| Other Related Promotional Costs | Our actual printing costs | As incurred | You are required to participate in any loyalty programs, prize promotions, gift card programs, and/or any other such promotional campaign that the Franchisor designates. Such participation shall be at your own expense. |
| Interest on Late Payments | 18% per year or the maximum percentage permitted by law(6) | Continues to accrue until paid. | Any payment or other amount owed to us under the franchise agreement or any other agreement will bear interest, compounded monthly beginning on the day after the due date. |
| Post-Termination Non-Compliance Delay Fee | $500 | Each day of non-compliance | With respect to the de-branding requirements and other post termination obligations, you must pay a delay fee of $500 for each day of continued non-compliance. |
| Nonsufficient Funds Charge | $50 for first offense; $100 for subsequent offenses within 12 months period, plus any expenses | As incurred | In addition to the charge, you must reimburse the Franchisor for costs and expenses incurred due to your nonpayment. |
| Reimbursement of Monies Paid by Franchisor | Our actual costs | On demand | You must reimburse us for the cost of any payments we make on your behalf. |
| Audit | Cost of audit, | Expenses as | |
| Expenses of |
| Independent Audit Made by Us Business Interruption Proceeds Fee | plus travel and related expenses of independent certified public accountant 4% of proceeds of business interruption insurance received by franchisee | incurred; cost of audit payable upon receipt of audit report. When proceeds are received. | Payable to the Franchisor when Franchisee is closed as a result of a casualty or other event that is covered by your business interruption insurance policy. |
Source: Item 6 — OTHER FEES (FDD pages 17–22)
What This Means (2025 FDD)
According to Amorino's 2025 Franchise Disclosure Document, the Independent Audit Made by Us Business Interruption Proceeds Fee is payable to Amorino when proceeds from a business interruption insurance policy are received by the franchisee. This fee is incurred when an Amorino franchisee is closed due to a casualty or other event covered by their business interruption insurance.
The fee covers the cost of an independent audit, including travel and related expenses of the certified public accountant. The amount of the fee is 4% of the business interruption insurance proceeds received by the franchisee, in addition to the auditor's expenses. The cost of the audit is payable upon receipt of the audit report.
This means that if an Amorino franchise experiences an event that causes closure and triggers a business interruption insurance payout, Amorino has the right to conduct an independent audit to verify the proceeds. The franchisee is responsible for covering the cost of this audit, which includes both a percentage of the insurance payout and any associated travel expenses for the auditor. This fee structure ensures that Amorino can independently verify the insurance proceeds while placing the financial burden of the audit on the franchisee.