What is the effective date for termination of the DRA for a Capriottis Sandwich Shop franchise?
Capriottis_Sandwich_Shop Franchise · 2025 FDDAnswer from 2025 FDD Document
nable opinion cause you to breach your development obligations under the Schedule (unless we are willing to extend the Schedule proportionately to account for the delay).
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- Term. This DRA's term begins on the Effective Date and ends on the date when (a) you (or your Approved Affiliate) open for business the final CAPRIOTTI'S Restaurant to be constructed and developed under the Schedule, or (b) this DRA otherwise is terminated, but in any event this DRA's term will end no later than .
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- Termination. We have the right at any time to terminate this DRA and your rights under this DRA to develop CAPRIOTTI'S Restaurants within the Territory, such termination to be effective upon our delivery to you of written notice of termination, if:
- (a) you fail to satisfy either your development obligations under the Schedule or any other obligation under this DRA, which defaults you have no right to cure; or
- (b) the First Franchise Agreement or another franchise agreement between us and you (or your Approved Affiliate) for a CAPRIOTTI'S Restaurant is terminated by us in compliance with its terms or by you (or your Approved Affiliate) for any (or no) reason; or
- (c) we have delivered a formal written notice of default to you (or your Approved Affiliate) under the First Franchise Agreement or another franchise agreement between us and you (or your Approved Affiliate) for a CAPRIOTTI'S Restaurant, and you (or your Approved Affiliate) fail to cure that default within the required timeframe; or
- (d) you (or your Approved Affiliate), without our prior written approval, cease operating any CAPRIOTTI'S Restaurant.
No portion of the Development Fee is refundable upon termination of this DRA or under any other circumstances.
Source: Item 23 — RECEIPTS (FDD pages 73–303)
What This Means (2025 FDD)
According to the 2025 FDD, Capriottis Sandwich Shop has the right to terminate the Development Rights Agreement (DRA) at any time. The termination is effective immediately upon delivery of written notice to the franchisee.
Capriottis Sandwich Shop may terminate the DRA if the franchisee fails to meet development obligations or any other obligations under the DRA, and these defaults cannot be cured. Termination can also occur if any franchise agreement between Capriottis Sandwich Shop and the franchisee is terminated, either by Capriottis Sandwich Shop in compliance with its terms or by the franchisee for any reason. Additionally, if Capriottis Sandwich Shop delivers a written notice of default under a franchise agreement and the franchisee fails to cure the default within the required timeframe, the DRA can be terminated. Finally, if the franchisee ceases operating any Capriottis Sandwich Shop restaurant without prior written approval, Capriottis Sandwich Shop can terminate the DRA.
It is important to note that termination of the DRA does not terminate any existing franchise rights granted under individual franchise agreements. The DRA grants no separate franchise rights; those rights arise only under franchise agreements signed directly with Capriottis Sandwich Shop. If the DRA is terminated, the franchisee loses all further rights to develop Capriottis Sandwich Shop restaurants within the designated territory.