How is the Amorino renewal fee calculated for each five-year renewal period?
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 | Thirty days before the expiration of the term of your existing agreement, you must pay this renewal fee, and at t |
Source: Item 6 — OTHER FEES (FDD pages 17–22)
What This Means (2025 FDD)
According to Amorino's 2025 Franchise Disclosure Document, the renewal fee is 25% of the then-current initial franchise fee for each five-year renewal period. To renew the franchise agreement, a franchisee must pay this fee 30 days before the expiration of the current term.
In addition to paying the renewal fee, the franchisee must also sign an amendment, stipulation, or new franchise agreement. This new agreement will reflect the renewal term and the terms of Amorino's then-current form of franchise agreement. This indicates that the terms of the franchise agreement may change upon renewal, so franchisees should carefully review the new agreement.
It is important to note that the renewal fee is based on the initial franchise fee at the time of renewal, not the initial fee paid when the original franchise agreement was signed. If the initial franchise fee increases over time, the renewal fee will also increase. This is a fairly standard practice in franchising, as it allows the franchisor to adjust the renewal fee based on the current market conditions and the value of the franchise system.