factual

Is Amorino required to spend advertising fees collected on advertising or promotions in a franchisee's specific area?

Amorino Franchise · 2025 FDD

Answer from 2025 FDD Document

We will not be required to spend any amount from these monies on advertising or promotions in your area.

We have the sole right to determine how to spend contributions to the fund, or any funds from any other advertising program, and the sole authority to determine the selection of the advertising materials and programs, provided, however, that we will make a good faith effort to expend such funds in the general best interests of the System on a national or regional basis.

Additionally, it is understood that any national, regional, or local advertising effort may not equitably reach all markets. (Franchise Agreement, Section 12.C).

Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING (FDD pages 39–46)

What This Means (2025 FDD)

According to Amorino's 2025 Franchise Disclosure Document, Amorino is not required to spend advertising fees collected on advertising or promotions in a franchisee's specific area. While Amorino does not currently charge an advertising fee, they retain the right to do so in the future, up to 3% of a franchisee's annual Gross Revenue.

If Amorino implements an advertising fee, the funds will be used for advertising, marketing, and promotion efforts that Amorino designates, including associated creative and administrative expenses. Company-owned stores may not be required to contribute to these initiatives, and franchised stores may not be required to contribute equally. Amorino will not provide franchisees with an audit or accounting of advertising expenditures or collected fees, and franchisees are not entitled to obtain an accounting of the advertising fund.

Amorino has sole discretion in determining how to spend contributions to the fund, ensuring that funds are used in the general best interests of the System on a national or regional basis. However, Amorino acknowledges that national, regional, or local advertising efforts may not equitably reach all markets. This means that while Amorino aims to benefit the entire franchise system, individual franchisees may not see direct benefits from advertising expenditures in their specific area.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.