What is the dependency for paying the development fee for a Capriottis Sandwich Shop franchise?

According to the 2025 Capriottis Sandwich Shop Franchise Disclosure Document, the payment of the development fee is deferred until certain conditions are met. Specifically, Capriottis Sandwich Shop will defer the payment of the development fee, which is due under the Development Rights Agreement, until they have fulfilled all of their initial obligations to the franchisee. Additionally, the franchisee must have opened their first Capriottis Sandwich Shop restaurant for business.

The FDD states that the franchisee must pay the full development fee on the day they open their first Capriottis Sandwich Shop restaurant. This arrangement benefits the franchisee by allowing them to delay the payment of the development fee until the franchisor has met their obligations and the restaurant is operational. This reduces the initial financial burden on the franchisee and aligns the payment with the commencement of business operations.

However, it is important to note that this deferral might be subject to specific state regulations. For example, the excerpt mentions specific stipulations for franchisees in Maryland, where financial assurances are required based on Capriottis Sandwich Shop's financial condition. Therefore, prospective franchisees should carefully review the specific terms and conditions outlined in the FDD and any addenda applicable to their state to fully understand the payment obligations and any associated risks.