What is specifically excluded from the 'Payroll' definition for an Amorino franchise?

According to Amorino's 2025 Franchise Disclosure Document, the definition of 'Payroll' specifically excludes owner salary or draw. The document defines 'Payroll' as the cost of hourly employees, management labor, and manager salary or bonus payments. This is an important distinction for prospective franchisees to understand because the financial performance representations in Item 19 rely on this definition.

For a potential Amorino franchisee, this means that when reviewing the financial performance data, the 'Payroll' figures presented do not include any compensation that the owner might take from the business, whether as a salary or a draw. This exclusion could significantly impact the franchisee's personal financial planning, as they need to account for their own compensation separately from the reported payroll expenses.

This approach is fairly standard in franchise financial reporting, as owner compensation can vary widely depending on individual circumstances and business strategies. By excluding it, Amorino aims to provide a more consistent and comparable measure of labor costs across different franchise locations. However, it's crucial for franchisees to factor in their desired salary or draw when assessing the overall profitability and financial viability of the Amorino franchise.