To whom is the Development Services Fee paid when opening a Capriottis Sandwich Shop?
Capriottis_Sandwich_Shop Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Expenditure | Amount1 | Method of Payment | When Due | Column5 To Whom Payment is Made |
|---|---|---|---|---|
| Franchise Fee2 | $40,000 | Lump Sum | When you sign Agreement | Us |
| Development | $10,000 | Lump Sum | When you sign | Us |
| Services Fee3 | Agreement | |||
| Architectural/ | $15,000 - $35,000 | Vendor’s Terms | As Incurred | Architect/ |
| Engineering Fees and | Engineer and/or | |||
| Project Management4 | Vendor | |||
| Professional Services5 | $2,000 - $10,000 | As Incurred | As Incurred | Your attorney, accountant, and other professionals |
| Permits and | $3,000 - $40,000 | As Incurred | As Incurred | Local |
| Licensing6 | Municipalities | |||
| Rent7 | $3,500 - $8,000 | Lump Sum | As Incurred | Landlord |
| Security Deposits8 | $5,000 - $20,000 | Lump Sum | Per Lease/Utility Company Requirements | Landlord / Utilities |
| Leasehold | $250,000 - $350,000 | Negotiable | Contract Terms | General |
| Improvements9 | Contractor | |||
| Furniture, Fixtures, | $150,000 - $210,000 | Vendor’s Terms | Before opening | Approved |
| Equipment, and | Independent | |||
| Smallwares10 | Suppliers | |||
| Interior Décor | $4,000 - $13,000 | Vendor’s Terms | Before opening | Vendor |
| Exterior Signage | $8,000 - $25,000 | Vendor’s Terms | Before opening | Approved Sign- Maker |
| Column 1 Type of Expenditure | Column 2 Amount1 | Column 3 Method of Payment | Column 4 When Due | Column5 To Whom Payment is Made |
| Menu Boards | $1,000 - $3,000 | Vendor’s Terms | Before opening | Vendor |
| POS System11 | $6,200 - $20,000 | Vendor’s Terms | B |
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 18–26)
What This Means (2025 FDD)
According to the 2025 Capriottis Sandwich Shop Franchise Disclosure Document, the Development Services Fee, which amounts to $10,000, is paid to Capriottis Sandwich Shop itself. This fee is due when the Development Rights Agreement is signed.
This fee covers the costs Capriottis Sandwich Shop incurs for providing site selection, layout, and design assistance to the franchisee. If a franchisee signs a Development Rights Agreement, the Development Services Fee for the first Capriottis Sandwich Shop they agree to develop is due when they sign the Development Rights Agreement.
Understanding where these initial fees are directed is crucial for prospective franchisees as it clarifies the financial obligations and to whom those obligations are owed. This transparency helps in budgeting and financial planning during the initial stages of establishing a Capriottis Sandwich Shop franchise.