Is the initial franchise fee for Amorino refundable?
Amorino Franchise · 2025 FDDAnswer from 2025 FDD Document
in the form attached hereto as Attachment B; and
- (7) you are otherwise in compliance under this Agreement.
6. FEES
- A. Initial Franchise Fee. Upon execution of this Agreement, you shall pay us an initial franchise fee in the amount and according to the payment schedule specified in the Data Sheet, with the amount of such fee based on the type of Store you will open (i.e., traditional store, kiosk outlet, or mobile outlet). The initial franchise fee, when paid, shall be deemed fully earned by Amorino and is not refundable.
- B. Store Opening Promotional Fee. In connection with the opening of your Store, you must spend the required amount of money on appropriate marketing and advertising the opening of your Store, in the manner described in Section 12.B.
- C. Advertising Fee. In each calendar year during the term of this Agreement, we can require you to spend up to the percentage of your Gross Revenue specified in the Data Sheet, for advertising, marketing and public relations initiatives, as further described in Section 12.C.
Source: Item 22 — CONTRACTS (FDD pages 80–81)
What This Means (2025 FDD)
According to Amorino's 2025 Franchise Disclosure Document, the initial franchise fee is generally not refundable. The FDD specifies that upon execution of the Franchise Agreement, the initial franchise fee is considered fully earned by Amorino and is not refundable. The amount of this fee is determined by the type of store the franchisee intends to open, whether it is a traditional store, kiosk outlet, or mobile outlet.
However, there is an exception related to site selection. If a franchisee fails to secure an approved location within 90 days of the agreement's effective date, Amorino may charge a $3,500 fee to extend the site selection period by an additional 180 days, for a total of 270 days from the effective date. If the franchisee successfully opens the franchised business within this extended 270-day period, Amorino will refund the $3,500 extension fee.
This refund policy is conditional and tied specifically to the timely opening of the franchise within the extended site selection timeframe. Otherwise, the initial franchise fee remains non-refundable, which is a common practice in franchising, as it compensates the franchisor for initial services and expenses.