How is the initial area development fee calculated for an Amorino Area Development Agreement?
Amorino Franchise · 2025 FDDAnswer from 2025 FDD Document
nitial Area Development Fee
If you sign an Area Development Agreement, we will give you the right to open multiple Stores within a specific geographic area, according to an area development schedule which we will negotiate with you. To become an Area Developer, you must pay us an initial area development fee. The initial area development fee will be equal to the sum of: a) the current initial franchise fee (for the first location) (namely $30,000), plus b) one half the current initial franchise fee (namely $12,500) times the number of additional locations provided in your area development schedule. For example, if you sign an Area Development Agreement for three locations, you must pay an initial area development fee equal to $55,000 ($30,000, plus $12,500 x 2), and if you sign an Area Development Agreement for ten locations, you must pay an initial area development fee equal to $142,500 ($30,000, plus $12,500 x 9).
When you sign each unit franchise agreement for each additional location, the $12,500 which you paid for each additional location as part of the initial area development fee will be applied as a partial credit against the then-current initial franchise fee for that location, and you must pay the difference between the then-current franchise fee and the $12,500 credit for that location, at the time you sign the lease for that location. The Initial Area Develo
Source: Item 5 — INITIAL FEES (FDD pages 15–17)
What This Means (2025 FDD)
According to Amorino's 2025 Franchise Disclosure Document, the initial area development fee is calculated by summing the initial franchise fee for the first location, which is $30,000, and one-half of the initial franchise fee ($12,500) multiplied by the number of additional locations included in the area development schedule. This fee grants the area developer the right to open multiple Amorino stores within a specific geographic area, following a negotiated development schedule.
For instance, if an area development agreement covers three locations, the initial area development fee would be $55,000, calculated as $30,000 plus ($12,500 multiplied by 2). Similarly, an agreement for ten locations would require an initial fee of $142,500, which is $30,000 plus ($12,500 multiplied by 9). It is important to note that the initial area development fee is not refundable.
When the franchisee signs a unit franchise agreement for each additional location, $12,500 paid for each location as part of the initial area development fee will be applied as a partial credit against the then-current initial franchise fee for that location. The franchisee must pay the difference between the then-current franchise fee and the $12,500 credit for that location at the time they sign the lease for that location. This credit system effectively reduces the initial franchise fee for subsequent locations under the area development agreement.