For Capriottis Sandwich Shop, when are Cooperative contributions due?
Capriottis_Sandwich_Shop Franchise · 2025 FDDAnswer from 2025 FDD Document
rior review and approval.
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- You must pay your proportionate share of the advertising and promotional expenses incurred by the Cooperative and must submit reports we or the Cooperative requires. Contributions are due when the Royalty Fee is collected and failure to make timely payment will result in your suspension and/or exclusion from any advertising initiatives funded by the Cooperative until you fully pay all outstanding amounts. Failure to make a Cooperative contribution is a default under your Franchise Agreement.
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- We may grant you an exemption for any length of time from the requirement of membership in a Cooperative, upon written request from you, stating reasons supporting the exemption. Our decision concerning the request for exemption will be final and can be reversed at any time to require Cooperative contributions to resume.
For all Cooperatives, member franchisees' required contributions currently are 2% of Gross Sales per month, unless a majority of the Cooperative's members vote to increase the contribution rate above 2% (each Restaurant will have one vote). We or someone we designate will be responsible for the administration of the Cooperatives.
Source: Item 11 — Franchisor's Assistance, Advertising, Computer Systems, and Training (FDD pages 33–42)
What This Means (2025 FDD)
According to the 2025 Capriottis Sandwich Shop Franchise Disclosure Document, Cooperative contributions are due when the Royalty Fee is collected. Failure to make timely payments may result in suspension or exclusion from advertising initiatives funded by the Cooperative until all outstanding amounts are paid. Failure to make a Cooperative contribution is considered a default under the Franchise Agreement.
Currently, member franchisees' required contributions are 2% of Gross Sales per month, but this can be increased if a majority of the Cooperative's members vote to do so. Each restaurant gets one vote in this process. Capriottis Sandwich Shop, or someone they designate, will administer the Cooperatives.
The Cooperatives will prepare annual or periodic financial statements that will be available for franchisee review. Capriottis Sandwich Shop has the authority to require Cooperatives to be formed, changed, dissolved, or merged. Franchisees can request an accounting of advertising expenses incurred by the Cooperative by sending a written request to Capriottis Sandwich Shop.