Can Amorino obtain revenue from franchisees through approved suppliers?
Amorino Franchise · 2025 FDDAnswer from 2025 FDD Document
may purchase Amorino Goods and Services only from suppliers designated by Amorino and who may be Affiliates of Amorino. You acknowledge and agree that Amorino and its Affiliates may negotiate purchase arrangements with suppliers for your benefit and may derive revenue or obtain rebates, bulk pricing discounts or allowances for their own account from approved or designated suppliers if rebates or other considerations become available because of your purchases of products or services.
Source: Item 22 — CONTRACTS (FDD pages 80–81)
What This Means (2025 FDD)
According to Amorino's 2025 Franchise Disclosure Document, Amorino and its affiliates may negotiate purchase arrangements with suppliers for the benefit of franchisees. As a result, Amorino may derive revenue or obtain rebates, bulk pricing discounts, or allowances for their own account from approved or designated suppliers if rebates or other considerations become available because of a franchisee's purchases of products or services. Amorino may also have an approved supplier for any purchases of products or services and may obtain revenue from franchisees and make a profit in doing so.
This means that Amorino franchisees are generally required to purchase Amorino goods and services from Amorino or its designated sources, including affiliates. Amorino can profit from these required purchases made by franchisees through designated suppliers. This is a fairly common practice in franchising, allowing franchisors to maintain quality control and potentially generate additional revenue streams.
Prospective Amorino franchisees should be aware that they may not have the freedom to choose suppliers independently and that a portion of their purchases contributes to Amorino's revenue. It is important to factor in these costs and understand the terms and conditions of supplier arrangements when evaluating the overall profitability of an Amorino franchise.