How often is the interest on late payments compounded for Amorino franchise fees?
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 on late payments is compounded monthly. The franchise agreement stipulates that any payment owed to Amorino will incur interest, starting the day after the payment due date. This interest accrues at a rate of 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 failing to make timely payments can result in significant additional costs due to the compounding interest. The 18% annual interest rate is a substantial penalty, and the monthly compounding means that the interest charges will increase more rapidly than with annual compounding. Franchisees should prioritize timely payments to avoid these charges.
It is important to note that the interest rate may be limited by state law. For example, the FDD notes that the maximum interest rate in California is 10% annually. Therefore, if a franchisee is located in a state with a lower maximum interest rate, that rate would apply instead of the 18% specified in the franchise agreement. Franchisees should be aware of the laws in their state regarding interest rates and ensure that Amorino's interest charges comply with those laws.