What payments are required by the Area Developer under the Amorino Area Development Agreement?
Amorino Franchise · 2025 FDDAnswer from 2025 FDD Document
t, with the first Advertising Fee payment due ten days after the first month (full or partial) that your Store is open.
- D. Decorations Fee. In each calendar year during the term of this Agreement, you are required to spend at least 0.5% of your Gross Revenue on seasonal and holiday decorations to be displayed in and around the Store, which decorations must comply with the standards we set forth by Amorino.
- E. Development Fee. If you are opening a Traditional Store and if so specified in the Data Sheet, we may require you to pay a development fee in the amount set forth in the Data Sheet, for services to be provided by us or a consulting firm designated by us to assist you in managing the selection and development of the Store. If we require you to pay such fee, half of the fee is due when you sign this Agreement, and the other half is due on the Site Selection Date. Such fee is to be paid to us on behalf of the consultant and is nonrefundable upon payment.
- F. Transfer Fee. In connection with a transfer of the Franchised Business, you must pay the applicable transfer fee in accordance with Section 15.
- G. Other Payments to Amorino. In addition to all other payments provided in this Agreement, you agree to pay promptly when due any and all:
- (1) Amounts advanced by Amorino or any of its Affiliates, or which Amorino or any of its Affiliates has paid, or which Amorino or any of its Affiliates becomes obligated to pay, on your behalf for any reason whatsoever;
- (2) Amounts due to Amorino relating to your participation in marketing programs that we may require pursuant to Section 12; and
- (3) Amounts due to Amorino for any reason, including on account of
purchases of Proprietary Products, supplies or services relating to the Franchised Business.
- I. Payment of Taxes. You shall promptly pay when due any and all taxes levied or assessed by any tax authority relating to the Franchised Business, goods and services provided by Amorino under this Agreement, fees paid to Amorino under this Agreement, or otherwise relating to your ownership and operation of the Store, including sales taxes, use taxes, personal property taxes, real property taxes, and excise taxes. To the extent any such taxes are required by law to be collected from you and paid over by Amorino or any of its Affiliates to a taxing authority (a) on account of revenue from the sale of all products and services related to the Franchised Business and all other income of any kind related to the Franchised Business, or (b) on account of the initial franchise fee or any other fee paid by you to Amorino or its Affiliates, then Amorino may elect in its discretion to collect the amount of such taxes from you and promptly pay the tax collections to the appropriate tax authority; provided, however, that unless Amorino so elects, it shall be your responsibility to pay all such taxes directly to the appropriate tax authority. To the extent that we or any of our Affiliates must pay any such taxes to any tax authority and have not received or collected the amount of such taxes from you prior to the date such taxes are due, we or any of our Affiliates may elect to pay such taxes and you shall reimburse us or such Affiliate in accordance with Section 6. Nothing in this subsection, or elsewhere, shall require you to pay or reimburse us or our Affiliates, for our or their income or other taxes of a similar nature.
Source: Item 22 — CONTRACTS (FDD pages 80–81)
What This Means (2025 FDD)
According to Amorino's 2025 Franchise Disclosure Document, Area Developers are subject to several payments under the Area Development Agreement. These include a Decoration Fee, requiring the Area Developer to spend at least 0.5% of their Gross Revenue annually on seasonal and holiday decorations that comply with Amorino's standards. If specified in the Data Sheet and if opening a Traditional Store, a Development Fee may be required for services provided by Amorino or a designated consulting firm to assist in store selection and development. Half of this fee is due upon signing the agreement, and the other half is due on the Site Selection Date; this fee is nonrefundable. A Transfer Fee is also applicable in connection with a transfer of the Franchised Business, as outlined in Section 15 of the agreement.
In addition to these specific fees, Area Developers must also cover amounts advanced or paid by Amorino or its affiliates on their behalf, amounts due relating to participation in marketing programs, and amounts due for purchases of Proprietary Products, supplies, or services related to the Franchised Business. Furthermore, Area Developers are responsible for promptly paying all taxes levied by any tax authority relating to the Franchised Business, goods and services provided by Amorino, fees paid to Amorino, or the ownership and operation of the store, including sales, use, personal property, real property, and excise taxes.
All payments must be made by the specified due date, and if the due date falls on a non-business day, the payment is due on the next business day. Area Developers are required to maintain an operating account for all payments and participate in Amorino's electronic funds transfer program, authorizing Amorino to use a pre-authorized bank draft system. Amorino will determine the amount of payments due and provide a Fee Notice to the Area Developer, who has three business days to dispute the amount in writing. Failure to dispute the amount confirms the accuracy of the Fee Notice and the obligation to pay. Amorino retains the right to require payment by another method at its discretion.