What was Amorino's total revenue for 2024, and how much of it was from required purchases and leases?
Amorino Franchise · 2025 FDDAnswer from 2025 FDD Document
Revenue Derived from Franchisee Purchases
Our affiliates derive revenue from franchisee purchases to the extent that franchisees purchase products or services from our affiliates. In 2024, our affiliates derived $5,826,042.57 in revenue from the sale of products and supplies to franchisees. Our total revenue for 2024 was $37,241, none of which was from required purchases and leases. The price which you must pay for the required products including the gelato is marked up from the wholesale price. Although we do not charge a royalty, we markup the cost of the products which you must purchase from us or our affiliates so that our owners may derive revenue that would
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, the company's total revenue for 2024 was $37,241. The document specifies that none of this revenue came from required franchisee purchases and leases. However, Amorino's affiliates generated $5,826,042.57 in revenue from the sale of products and supplies to franchisees during the same year.
This indicates that while Amorino itself may not directly profit from required purchases and leases, its affiliates do so through the sale of products and supplies that franchisees are obligated to buy. This arrangement allows Amorino to generate revenue through its affiliates, which is then passed on to the owners, similar to how royalties based on sales would function.
For a prospective franchisee, this means that the cost of goods and supplies will likely be marked up from the wholesale price, as Amorino does not charge a royalty. Franchisees should carefully consider the pricing and sourcing restrictions, as a significant portion of their expenses will be directed towards purchasing from Amorino's affiliates. Understanding the cost structure and the potential for price markups is crucial for assessing the profitability of an Amorino franchise.