Who pays for the audit expenses of an Amorino franchise?
Amorino Franchise · 2025 FDDAnswer from 2025 FDD Document
| Independent Audit Made by Us Business Interruption Proceeds Fee | plus travel and related expenses of independent certified public accountant 4% of proceeds of business interruption insurance received by franchisee | incurred; cost of audit payable upon receipt of audit report. When proceeds are received. | Payable to the Franchisor when Franchisee is closed as a result of a casualty or other event that is covered by your business interruption insurance policy. |
|---|---|---|---|
| Renewal Fee | 25% of our then current initial franchise fee, for each five years of renewal | Thirty days before the expiration of the term of your existing agreement |
Source: Item 6 — OTHER FEES (FDD pages 17–22)
What This Means (2025 FDD)
According to the 2025 Amorino Franchise Disclosure Document, the franchisee is responsible for covering the audit expenses if an independent audit is conducted. These expenses encompass the cost of the audit itself, in addition to travel and related costs incurred by the independent certified public accountant. The franchisee is obligated to pay these audit expenses upon receipt of the audit report.
This means that if Amorino deems an audit necessary, the franchisee will bear the financial burden of the audit. This is a fairly standard practice in franchising, as the franchisor needs to ensure compliance with the franchise agreement and maintain the integrity of the brand.
Prospective Amorino franchisees should be aware of this potential expense and factor it into their financial planning. It is advisable to inquire with Amorino about the circumstances that would trigger an audit and to understand the potential range of costs involved. This will help in preparing for unforeseen expenses and maintaining a healthy financial outlook for the franchise.