Is the initial area development fee for an Amorino franchise refundable?

According to Amorino's 2025 Franchise Disclosure Document, the initial area development fee is not refundable. This fee is paid by franchisees who sign an Area Development Agreement, which grants them the right to open multiple Amorino stores within a specific geographic area, according to a negotiated development schedule. The fee is calculated by adding the initial franchise fee for the first location ($30,000) to one-half of the initial franchise fee ($12,500) for each additional location included in the development schedule. For example, an area development agreement for three locations would require an initial area development fee of $55,000 ($30,000 + $12,500 x 2). For ten locations, the fee would be $142,500 ($30,000 + $12,500 x 9).

When the franchisee signs a unit franchise agreement for each additional location, the $12,500 paid for that location as part of the initial area development fee is credited towards the then-current initial franchise fee for that location. The franchisee must then pay the difference between the current franchise fee and the $12,500 credit when they sign the lease for that location.

Because the initial area development fee is non-refundable, prospective Amorino franchisees should carefully consider their ability to develop the agreed-upon number of locations before entering into an Area Development Agreement. This is a common practice in franchising, as these fees compensate the franchisor for granting exclusive development rights within a specific territory.