Can a Capriottis Sandwich Shop franchisee acquire a successor franchise?
Capriottis_Sandwich_Shop Franchise · 2025 FDDAnswer 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.