To which cooperative do the affiliate-owned Capriottis Sandwich Shop restaurants contribute?
Capriottis_Sandwich_Shop Franchise · 2025 FDDAnswer from 2025 FDD Document
Marketing Fees–COOP: All 10 affiliate-owned Restaurants contribute to the Las Vegas Cooperative.
In this example, we take into account the payment of Marketing COOP Fees for all 10 locations.
Our accounting system breaks up the 12 months into 13 separate 4-week accounting periods.
Source: Item 19 — FINANCIAL PERFORMANCE REPRESENTATIONS (FDD pages 59–67)
What This Means (2025 FDD)
According to Capriottis Sandwich Shop's 2025 Franchise Disclosure Document, the 10 affiliate-owned restaurants contribute to the Las Vegas Cooperative. This contribution is part of the marketing fees. The document mentions that the accounting system divides the 12 months into 13 separate 4-week accounting periods.
For a prospective franchisee, this means that a portion of their marketing fees will be directed towards a cooperative in Las Vegas if they are operating an affiliate-owned restaurant. It is important to note that the franchisor has the right to collect 4% of gross sales for the National Marketing Fund, but they are currently collecting 2%.
Understanding the specific allocation of marketing funds, including the contribution to the Las Vegas Cooperative, is crucial for franchisees to assess the value and effectiveness of the marketing support provided by Capriottis Sandwich Shop. Franchisees should inquire about the activities and strategies of the cooperative and how they benefit individual restaurant locations.