Who is responsible for the service charges or discounts from reimbursements charged on credit cards honored by an Amorino franchise?
Amorino Franchise · 2025 FDDAnswer from 2025 FDD Document
- (4) You also agree to honor such credit cards, courtesy cards, and other credit devices, programs, and plans as may be issued or approved by us from time to time. All reasonable and customary service charges or discounts from reimbursements charged on such cards or authorizations will be at your sole expense.
Source: Item 22 — CONTRACTS (FDD pages 80–81)
What This Means (2025 FDD)
According to Amorino's 2025 Franchise Disclosure Document, franchisees are solely responsible for covering service charges or discounts from reimbursements on credit cards that the franchise honors. This means that any fees or reductions in payments resulting from credit card transactions will be directly borne by the franchisee.
This stipulation has significant financial implications for prospective Amorino franchisees. Credit card processing fees can vary but typically range from 1% to 3% of the transaction amount. These costs can accumulate quickly, especially for businesses with high transaction volumes. The franchisee's profitability could be affected, as these charges reduce the net revenue from each sale.
Franchisees should factor these expenses into their financial projections and business plans. Understanding the expected volume of credit card transactions and negotiating favorable rates with credit card processors are crucial steps. Additionally, franchisees should explore strategies to minimize these costs, such as encouraging cash payments or adjusting pricing to account for these fees. This policy is fairly standard in the franchise industry, as it allows the franchisor to set pricing and participate in marketing programs without having to account for the varying costs incurred at different franchise locations.