Why does the revenue from each franchisee represent a significant concentration of Amorino's total revenue?

According to Amorino's 2025 Franchise Disclosure Document, the revenue from each franchisee represents a significant concentration of the company's total revenue because Amorino has a small number of franchisees. This was the case for each of the years ended December 31, 2024, 2023, and 2022.

For a prospective franchisee, this information highlights the importance of each individual franchise location to Amorino's overall financial health. If a significant portion of Amorino's revenue is tied to a small number of franchisees, the success or failure of even one location could have a noticeable impact on the franchisor's financial stability. This situation could create both opportunities and risks for franchisees.

On one hand, Amorino might be highly motivated to support its franchisees to ensure their success, given the outsized impact each location has on overall revenue. This could translate into more personalized attention, resources, and assistance. On the other hand, any financial difficulties faced by Amorino, due to underperformance or closure of a franchise, could potentially affect the level of support and services provided to other franchisees. Therefore, it is crucial for potential franchisees to assess the financial health and stability of Amorino, as well as the performance of existing franchise locations, before investing in a franchise.