From whom must an Amorino store purchase gelato and sorbet?
Amorino Franchise · 2025 FDDAnswer from 2025 FDD Document
Each Store must purchase and maintain an inventory of Proprietary Products as needed to meet reasonably anticipated consumer demand. A Store must purchase our gelato and sorbet from us, from our affiliate Amorino Trading, from our affiliate -18°, or from a producer, manufacturer, distributor or supplier designated or approved by us. You must purchase all products which bear any of our trademarks solely and exclusively from us or our affiliate -18° or from a producer, manufacturer, distributor or supplier we designate or approve. Amorino Trading and -18 are suppliers in which our officers owns an interest.
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 32–36)
What This Means (2025 FDD)
According to Amorino's 2025 Franchise Disclosure Document, franchisees are required to purchase gelato and sorbet from specific, approved sources. An Amorino store must purchase these products from Amorino itself, its affiliate Amorino Trading, its affiliate -18°, or from a producer, manufacturer, distributor, or supplier that Amorino designates or approves. Furthermore, any products bearing Amorino's trademarks must be purchased solely and exclusively from Amorino, its affiliate -18°, or from a designated or approved producer, manufacturer, distributor, or supplier.
This requirement ensures that Amorino maintains control over the quality and consistency of its gelato and sorbet, as well as products bearing its trademarks. By mandating specific suppliers, Amorino aims to uphold brand standards across all franchise locations. It is important to note that Amorino's officers have ownership interests in Amorino Trading and -18°, meaning that the franchisor and its affiliates may profit from these required purchases.
For a prospective franchisee, this means that the cost of goods, particularly gelato and sorbet, may be higher than if they were able to source these products from other suppliers. The FDD states that the price franchisees pay for required products, including gelato, is marked up from the wholesale price. While Amorino does not charge a royalty, it offsets this by marking up the cost of products franchisees are required to purchase from them or their affiliates. This is a crucial factor to consider when evaluating the potential profitability of an Amorino franchise.
The FDD estimates that a new Amorino store will spend approximately 40% to 60% of its initial expenditures (excluding real estate lease costs) and 20% to 40% of its total annual operating expenses (excluding real estate lease costs) on goods and services subject to these sourcing restrictions, with many of these expenditures going to Amorino's affiliates, -18° and/or Amorino Trading, LLC. This highlights the significant financial impact of these required purchases on the franchisee's overall investment and ongoing operational costs.