Does Capriottis Sandwich Shop currently charge the Technology Fee?
Capriottis_Sandwich_Shop Franchise · 2025 FDDAnswer from 2025 FDD Document
in which |
| Column 1 | Column 2 | Column 3 | Column 4 |
|---|---|---|---|
| Type of Fee(1) | Amount | Due Date | Remarks event the Due Date for the Royalty Fee will be the day and time we communicate to you. |
| Marketing Fund | Up to 4% of monthly Gross Sales(2) We currently charge 2% of monthly Gross Sales | Payable when you pay your Royalty Fee(2) | You must make contributions to the Marketing Fund. You also must pay us or the Marketing Fund for promotional or point-of purchase materials that you must use in connection with the Restaurant but which the Marketing Fund does not provide solely in consideration for your contributions. The annual costs for such materials will not exceed $2,500. |
| Service Management Group Fee | Currently $25 monthly | Payable when you pay your Royalty Fee(2) | This gives you access to the Service Management Group platform, providing detailed customer service analytics. We collect this amount from you and pay it directly to SMG, which is an unaffiliated third party. SMG has the right to increase its fee during the franchise term, in which case we have the right to increase the fee charged to you (without any upcharge). |
| Technology Fee | 0.65% of Gross Sales | Payable when you pay your Royalty Fee(2) | While we do not currently charge this fee, we have the right to begin collecting it on 30 days' prior written notice to you. |
Source: Item 6 — OTHER FEES (FDD pages 13–18)
What This Means (2025 FDD)
According to Capriottis Sandwich Shop's 2025 Franchise Disclosure Document, while a Technology Fee is not currently charged, Capriottis Sandwich Shop retains the right to implement it with a 30-day written notice to franchisees. The Technology Fee is listed as 0.65% of Gross Sales, payable when the Royalty Fee is due.
This fee, if implemented, would cover technology expenditures that Capriottis Sandwich Shop deems beneficial for the franchise system, including company-owned and affiliated restaurants. These expenditures may include mobile training and operational performance software, cloud-based franchise-management solutions, IT phone support and database maintenance, digital marketing, online ordering and loyalty subscriptions, iPad mobile device management, and e-learning solutions.
For a prospective franchisee, this means that while the Technology Fee is not an immediate cost, it could be introduced during the franchise term. Franchisees should factor in the potential for this additional 0.65% of Gross Sales expense when evaluating the financial viability of a Capriottis Sandwich Shop franchise. It is important to note that the franchisor has the discretion to determine how the Tech Fees are spent and is not obligated to ensure direct or proportional benefits to individual franchisees based on their payments.