What is the duration of the Renewal Term for a Capriottis Sandwich Shop franchise agreement?
Capriottis_Sandwich_Shop Franchise · 2025 FDDAnswer from 2025 FDD Document
This Agreement shall be effective for a period of ten (10) years from the date of this Agreement (the "Renewal Term"). Franchisee agrees to operate the Franchised Restaurant in compliance with this Agreement for the entire Renewal Term unless this Agreement is properly terminated under Section 10. When this Agreement expires, Franchisee will have no right to acquire a successor franchise to continue operating the Franchised Restaurant as a CAPRIOTTI'S Restaurant and must immediately cease operating the Franchised Restaurant.
Source: Item 22 — CONTRACTS (FDD page 73)
What This Means (2025 FDD)
According to the 2025 Capriottis Sandwich Shop Franchise Disclosure Document, the Renewal Term for a franchise agreement is ten years. Specifically, the agreement is effective for a period of ten years from the date of the agreement, which is referred to as the "Renewal Term." The franchisee must operate the franchised restaurant in compliance with the agreement for the entire Renewal Term, unless the agreement is terminated earlier under Section 10.
Upon expiration of the Renewal Term, the franchisee does not have the right to acquire a successor franchise to continue operating the Capriottis Sandwich Shop restaurant. Instead, the franchisee must immediately cease operating the franchised restaurant. This contrasts with the initial term, where a franchisee in good standing has the option to renew.
This condition is a significant point for prospective franchisees to consider. Unlike the initial franchise term, there is no guaranteed option to renew after the Renewal Term expires. If a franchisee wishes to continue operating a Capriottis Sandwich Shop location beyond the renewal period, they would need to negotiate a new agreement with the franchisor, which may or may not be granted under the same terms.