How much did Amorino spend on accounting fees paid by an affiliate in 2024?
Amorino Franchise · 2025 FDDAnswer from 2025 FDD Document
Certain franchisor obligations such as training, initial setup support, and others are provided to the Company's customers by the Affiliate. At the discretion of management, the costs of these services are borne by the Affiliate and are not charged to the Company. Accordingly, no costs incurred to fulfill the performance obligation under the Company's contracts with its customers are recognized by the Company. The Company's operating results and financial position could be different if the Company and its affiliate were unrelated entities.
Source: Item 22 — CONTRACTS (FDD pages 80–81)
What This Means (2025 FDD)
Based on the 2025 Franchise Disclosure Document, the financial statements of CPUSA LLC, the Amorino franchisor, do not explicitly state the amount of accounting fees paid by an affiliate on behalf of the company in 2024. However, Note B regarding related party transactions indicates that certain franchisor obligations, such as training and initial setup support, are provided by an affiliate, and the costs of these services may be borne by the affiliate without being charged to the company.
This arrangement means that Amorino franchisees might not directly see the costs associated with these services reflected in the company's financial statements. The FDD states that the company's operating results and financial position could be different if the company and its affiliate were unrelated entities.
Prospective franchisees should consider inquiring with Amorino about the nature and extent of services provided by affiliates, and how these related-party transactions could affect the overall financial health and stability of the franchisor. Understanding these relationships is crucial for assessing the true cost structure and profitability of the Amorino franchise system.