Who has the sole right to determine how to spend contributions to the Amorino advertising fund?
Amorino Franchise · 2025 FDDAnswer from 2025 FDD Document
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 has the sole right to determine how to spend contributions to the advertising fund. Amorino also has the sole authority to determine the selection of advertising materials and programs. However, Amorino will make a good faith effort to expend such funds in the general best interests of the System on a national or regional basis.
While Amorino has the authority to determine how advertising funds are spent, the FDD also states that any national, regional, or local advertising effort may not equitably reach all markets. This means that franchisees in some areas may not benefit as much from advertising campaigns as those in other areas. Amorino is not required to spend any amount from these monies on advertising or promotions in your area.
It is important to note that Amorino does not currently charge an advertising fee, but they have the right to charge a fee in the future, up to three percent (3%) of a franchisee's annual Gross Revenue. If an advertising fee is charged, company-owned stores may not be required to contribute money for these initiatives, and all franchised stores may not be required to contribute on an equal basis to these initiatives. Amorino will not provide franchisees with an audit or accounting of advertising expenditures or the advertising fees collected, and a franchisee may not obtain an accounting of the advertising fund.