What condition is placed on Capriottis Sandwich Shop's acceptance of any lease?
Capriottis_Sandwich_Shop Franchise · 2025 FDDAnswer from 2025 FDD Document
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- Option to Lease. Landlord hereby agrees that, in the event of (a) the termination or expiration of the Franchise Agreement by and between Tenant and Franchisor; (b) the termination of the Form Lease for any cause whatsoever including, without limitation, a default by Tenant under the Form Lease after expiration of any applicable notice and cure periods; or (c) Tenant's failure to exercise any extension option contained in the Form Lease, Franchisor shall have the option to lease the Premises according to the same terms and conditions as are contained in the Form Lease, in accordance with the following:
- (a) Landlord agrees to promptly give written notice to Franchisor (at the address set forth in this Agreement) in the event the Form Lease is terminated as the result of a default by Tenant or in the event Tenant fails to exercise any remaining options to extend the term of the Form Lease;
- (b) If Franchisor elects to lease the Premises, Franchisor shall notify Landlord in writing of its election to exercise this option to lease within 30 days after (1) termination or expiration of the Franchise Agreement; (2) Franchisor's receipt of notice from Landlord that the Form Lease has been terminated; or (3) receipt of notice from Landlord that Tenant has failed to exercise an option to extend the term of the Form Lease;
- (c) If Franchisor elects to lease the Premises, Franchisor shall sign and deliver to Landlord a lease containing all of the same terms and conditions (including rental rates, terms and remaining options to extend the term of the Lease) as are contained in the Lease; provided, however, that Franchisor's leasehold interest shall not be subject to any defaults or claims that may exist between Landlord and Tenant and any lease shall permit Franchisor to assign the lease or sublease the Premises to a franchisee of Franchisor for use as a CAPRIOTTI'S SANDWICH SHOP franchised location; at which point, the new franchisee shall sign and deliver to Landlord a lease containing all of the same terms and conditions (including rental rates, terms and remaining options to extend the term of the Lease) as are contained in the Lease, and Franchisor shall be released from any and all liability under the lease; and
Source: Item 22 — CONTRACTS (FDD page 73)
What This Means (2025 FDD)
According to the 2025 Capriottis Sandwich Shop Franchise Disclosure Document, if a franchisee's agreement is terminated or expires, or if the current lease is terminated for any reason, Capriottis Sandwich Shop has the option to lease the premises.
Capriottis Sandwich Shop must provide written notice to the landlord within 30 days of the franchise agreement's termination or expiration, or of receiving notice from the landlord about the lease termination or the tenant's failure to extend the lease. If Capriottis Sandwich Shop chooses to lease the premises, they must sign a lease with the same terms and conditions as the original lease.
However, Capriottis Sandwich Shop's leasehold interest will not be subject to any defaults or claims between the landlord and the original tenant. The lease must also allow Capriottis Sandwich Shop to assign the lease or sublease the premises to another franchisee for use as a Capriottis Sandwich Shop location, at which point the new franchisee would assume the lease under the same terms, and Capriottis Sandwich Shop would be released from liability.