Do Amorino officers have an ownership interest in Amorino Trading and -18°?
Amorino Franchise · 2025 FDDAnswer from 2025 FDD Document
liate -18°, or (ii) suppliers we designate. Our officers own interests in the affiliated companies that supply goods or services to our franchise system, including Amorino Trading and -18. If one of our other affiliates becomes a supplier in the future, our officers may own interests in that affiliate, as applicable. A Store must purchase the POS computer from Square or any other vendor selling hardware compatible with Square software. See Item 11 for more information about computer hardware and software requirements.
There are no purchasing or distribution cooperatives currently in existence for the required purchases from our affiliate -18° or from Amorino Trading or from any other approved third-party vendors. We do not currently have or negotiate any purchase arrangements with suppliers for the benefit of franchisees. In the future, Amorino and its affiliates may negotiate purchase arrangements with suppliers for the System's 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 the Store's purchases of products or services.
We may but are not obligated to conduct advertising for your Store. We do not currently advertise in the United States; however, you must purchase from us or our approved supplier all promotional materials designated by us to promote the sale of new and featured products. We may elect to utilize various local, regional, and/or national media campaigns in the future which may include radio, television, magazine, newspaper, and internet advertising campaigns.
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 32–36)
What This Means (2025 FDD)
According to Amorino's 2025 Franchise Disclosure Document, the company's officers do have ownership interests in Amorino Trading and -18°. This is significant for prospective franchisees because it means that when they purchase required goods and services from these affiliated suppliers, Amorino's officers directly benefit financially.
The FDD stipulates that franchisees must purchase certain items, including gelato, sorbet, and products bearing Amorino's trademarks, from Amorino Trading, -18°, or other designated suppliers. Additionally, franchisees are required to purchase furniture, equipment, casework, and restaurant supplies from Amorino Trading or -18°. This requirement ensures a consistent supply chain and quality control, but it also channels a portion of the franchisee's revenue back to the franchisor's officers through these affiliated entities.
This arrangement is not uncommon in franchising, where franchisors often have affiliated companies that supply goods or services to franchisees. While it can create a potential conflict of interest, it also allows the franchisor to maintain standards and potentially negotiate better pricing due to bulk purchasing power. However, it is crucial for prospective Amorino franchisees to understand that a portion of their expenditures will directly benefit the franchisor's officers through their ownership in these supplier companies.
In 2024, Amorino's affiliates derived $5,826,042.57 in revenue from sales to franchisees. The FDD also notes that the prices franchisees pay for required products, including gelato, are marked up from the wholesale price. This markup allows the owners to derive revenue that would otherwise be charged as a royalty based on sales. This is an important factor for prospective franchisees to consider when evaluating the overall cost and profitability of an Amorino franchise.