According to Capriottis Sandwich Shop's 2025 Franchise Disclosure Document, EBITDA is calculated using the following formula: Total Sales minus Total Prime Cost minus Total Operating Expense minus Total Non-Controllable Expense equals EBITDA.

For a prospective franchisee, understanding this formula is crucial as it provides a clear method for assessing the potential profitability of a Capriottis Sandwich Shop restaurant. By carefully tracking and managing each component of the formula—sales, prime costs, operating expenses, and non-controllable expenses—a franchisee can gain insights into the financial performance of their location.

Non-controllable expenses for Capriottis Sandwich Shop include total rent, personal property tax, electricity, gas, sewer, trash removal, water, TV, Management Fee (Royalty Fee), Marketing Fees– National Fund & Local Cooperative, and accounting fees. This means that while franchisees can manage prime costs and operating expenses, they have less control over these non-controllable expenses, which can significantly impact their EBITDA.

It's important to note that the FDD emphasizes that individual results may vary, and there is no assurance that a franchisee will achieve the same financial performance as the affiliate-owned restaurants used in the Item 19 financial performance representation. Therefore, a prospective franchisee should conduct thorough due diligence and consider all factors that may affect their restaurant's financial performance.