What is the renewal fee for Amorino franchises based on?

According to Amorino's 2025 Franchise Disclosure Document, to renew the franchise for an additional five-year term, a franchisee must pay a renewal fee. This fee is equal to twenty-five percent (25%) of Amorino's then-current initial franchise fee for each five years of renewal. This fee is paid when the franchisee signs an amendment to the existing agreement, reflecting any new terms, or at Amorino's option, when the franchisee signs the then-current form of franchise agreement or an agreement stipulating renewal of the existing agreement.

For a prospective Amorino franchisee, this means that the cost to renew the franchise is not a fixed amount but depends on what the initial franchise fee is at the time of renewal. If the initial franchise fee increases, the renewal fee will also increase, and vice versa. This condition introduces an element of uncertainty in long-term financial planning, as the renewal fee cannot be precisely predicted at the outset of the franchise term.

It is common in the franchise industry for renewal fees to be a percentage of the initial franchise fee or based on the then-current royalty rate. Franchisees should be aware of this potential cost and factor it into their financial projections. Additionally, the franchisee must meet other conditions to be eligible for renewal, such as being in good standing with Amorino and completing any required training or store renovations.