What interest rate does Amorino charge on late payments?
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, the interest rate charged on late payments is 18% per year, or the maximum percentage permitted by law. This interest is compounded monthly and begins accruing the day after the payment due date.
For a prospective Amorino franchisee, this means that any payment owed to Amorino under the franchise agreement or any other agreement will be subject to interest charges if not paid on time. The interest will continue to accumulate until the payment is made.
It is important to note that the interest rate may be lower than 18% if the maximum percentage permitted by law in the franchisee's jurisdiction is less than 18%. For example, the FDD states that the maximum interest rate in California is 10% annually. Franchisees should be aware of the specific laws in their state regarding maximum interest rates to understand the potential charges for late payments.