factual

Can a Capriottis Sandwich Shop franchisee acquire a successor franchise?

Capriottis_Sandwich_Shop Franchise · 2025 FDD

Answer from 2025 FDD Document

Provision Section in franchise or other agreement Summary
b. Renewal or extension of Section 2 of Franchise You may acquire a successor franchise for
the term Agreement a 10-year term if: you request and conduct
with us a business review no earlier than
Section 3(a) of Renewal 12 months, but no later than 9 months,
Rider to Franchise before franchise term expires and then
Agreement notify us of your desire to acquire a
successor franchise at least 6 months
before franchise term expires; you have
substantially complied with all contractual
and other obligations during the franchise
term and continue substantial compliance
between date of your notice and end of
franchise term; you retain occupancy
rights for the Restaurant's premises and
remodel,
upgrade,
and
re-equip
the
Restaurant; and you and your owners do
not
have
any
pending
or
threatened
litigation or disputes with us, our affiliates,
or any approved vendor.
If you have renewal franchise rights and
are exercising them for first time because
your existing franchise soon will expire,
you have no additional renewal franchise
c. Requirements for you to Section 2 of Franchise rights after the next term expires.
Sign then-current franchise agreement and
renew or extend Agreement releases (if state law allows), pay successor
franchise fee, and attend refresher training.
Section 3(a) of Renewal "Renewal" means signing our then-current
Rider to Franchise franchise
agreement
for
the
10-year
Agreement successor franchise term, which could
contain materially different terms from
your
original
franchise
agreement
(including
higher
fees),
except
that
successor franchise fee is $10,000.

Source: Item 17 — RENEWAL, TERMINATION, TRANSFER, AND DISPUTE RESOLUTION (FDD pages 50–59)

What This Means (2025 FDD)

According to Capriottis Sandwich Shop's 2025 Franchise Disclosure Document, a franchisee has the option to acquire a successor franchise agreement. This successor agreement extends the franchise term for an additional 10 years. To be eligible, the franchisee must request and conduct a business review with Capriottis Sandwich Shop no earlier than 12 months and no later than 9 months before the current franchise term expires. Following the review, the franchisee must notify Capriottis Sandwich Shop of their intent to acquire a successor franchise at least 6 months before the expiration of the current term.

Several conditions must be met for a Capriottis Sandwich Shop franchisee to successfully obtain a successor franchise. The franchisee must have substantially complied with all contractual and other obligations throughout the existing franchise term and must maintain this compliance until the term's end. Additionally, the franchisee must retain occupancy rights for the restaurant premises and complete any required remodeling, upgrades, and re-equipping of the restaurant. Furthermore, neither the franchisee nor their owners can have any pending or threatened litigation or disputes with Capriottis Sandwich Shop, its affiliates, or any approved vendor.

To finalize the successor franchise, the Capriottis Sandwich Shop franchisee must sign the then-current franchise agreement and any required releases (if permitted by state law). They are also required to pay a successor franchise fee, which is $10,000, and attend refresher training. The new franchise agreement could contain materially different terms from the original agreement, including potentially higher fees. If a franchisee exercises their renewal rights for the first time as their existing franchise nears expiration, they will not have any additional renewal rights after the successor term concludes.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.