What collateral secures the notes payable to stockholders for Capriottis Sandwich Shop?

According to the 2025 FDD, the notes payable to stockholders for Capriotti's Sandwich Shop are collateralized by the company's assets. The FDD lists multiple instances of notes payable to stockholders with varying interest rates and due dates, all of which are secured by the company's assets.

Specifically, the notes payable to stockholders have interest rates ranging from 7.00% to 10% and are due through January 2026. Additional notes payable to stockholders have interest rates ranging from 8.00% to 12.00% and are due through February 2026. These notes, along with others, are collateralized by the assets of Capriotti's Sandwich Shop.

This means that if Capriotti's Sandwich Shop defaults on these notes, the stockholders have a legal claim to the company's assets up to the amount of the outstanding debt. For a prospective franchisee, this indicates the level of financial risk and security associated with these particular debt obligations of the company. It is important to note that the assets securing these notes could include tangible items like equipment and real estate, as well as intangible assets.