When does interest begin to accrue on late payments 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. |
Source: Item 6 — OTHER FEES (FDD pages 17–22)
What This Means (2025 FDD)
According to Amorino's 2025 Franchise Disclosure Document, interest accrues on any late payments or amounts owed to Amorino under the franchise agreement or any other agreement. This interest begins accruing the day after the payment due date. The interest rate is set at 18% per year, or the maximum percentage permitted by law, compounded monthly, and continues to accrue until the outstanding balance is paid in full.
For a prospective Amorino franchisee, this means that it is crucial to make all payments on time to avoid incurring interest charges. The 18% annual interest rate is a significant cost, and it can quickly add up if payments are consistently late. Franchisees should be aware of all payment due dates and ensure that they have sufficient funds available to cover these obligations.
It is important to note that the interest rate may be lower if the maximum percentage permitted by law in the franchisee's jurisdiction is less than 18%. For example, in California, the maximum interest rate is 10% annually. Franchisees should familiarize themselves with the applicable laws in their state to understand the maximum interest rate that can be charged on late payments. This late fee is relatively standard in the franchise industry, as it incentivizes franchisees to make timely payments.