When does the Amorino Post-Termination Non-Compliance Delay Fee apply?
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. |
| Post-Termination Non-Compliance Delay Fee | $500 | Each day of non-compliance | With respect to the de-branding requirements and other post termination obligations, you must pay a delay fee of $500 for each day |
Source: Item 6 — OTHER FEES (FDD pages 17–22)
What This Means (2025 FDD)
According to Amorino's 2025 Franchise Disclosure Document, the Post-Termination Non-Compliance Delay Fee applies if a franchisee fails to meet the de-branding requirements and other obligations after the termination of the franchise agreement. This fee is $500 for each day the franchisee remains non-compliant.
This means that if an Amorino franchisee does not remove branding, cease operations, or fulfill other post-termination duties as required by the franchise agreement, they will incur a daily penalty of $500. This fee continues to accrue for each day of non-compliance, potentially resulting in a significant financial burden.
It is important for prospective Amorino franchisees to understand the specific de-branding requirements and post-termination obligations outlined in Item 17 of the FDD. Franchisees should also have a plan in place to ensure they can meet these obligations promptly upon termination, whether voluntary or involuntary, to avoid incurring these delay fees. This could include budgeting for the costs of de-branding and ensuring they have the resources to comply with all requirements in a timely manner.