Can a Capriottis Sandwich Shop franchisee waive rights in the franchise agreement?
Capriottis_Sandwich_Shop Franchise · 2025 FDDAnswer from 2025 FDD Document
when applicable, the development fee due under the Development Rights Agreement until we have fulfilled all of our initial obligations to you under the Franchise Agreement and you have commenced doing business. You must pay us the full initial franchise fee on the day you open your CAPRIOTTI'S Restaurant for business. You must pay us the full development fee, if applicable, on the day you open your first CAPRIOTTI'S Restaurant for business.
- The "Summary" section of Item 17(h) in the Franchise Agreement chart in the Franchise Disclosure Document is amended by adding the following:
Pursuant to Section 13.1-564 of the Virginia Retail Franchising Act, it is unlawful for a franchisor to use undue influence to induce a franchisee to surrender any rights given to him under the franchise. If any provision of the franchise agreement involves the use of undue influence by the franchisor to induce a franchisee to surrender any rights given to him under the franchise, that provision may not be enforceable. Pursuant to Section 13.1-564 of the Virginia Retail Franchising Act, it is unlawful for a franchisor to cancel a franchise without reasonable cause. If any ground for default or termination stated in the Franchise Agreement does not constitute "reasonable cause," as that term may be defined in the Virginia Retail Franchising Act or the laws of Virginia, that provision may not be enforceable.
- The following paragraph is added to the end of Item 17 of the Franchise Disclosure Document:
No statement, questionnaire, or acknowledgement signed or agreed to by you in connection with the commencement of the franchise relationship shall have the effect of (i) waiving any claims under any applicable state franchise law, including fraud in the inducement, or (ii) disclaiming reliance on any statement made by us, any franchise seller, or any other person acting on our behalf. This provision supersedes any other term of any document executed in connection with the franchise.
THE FOLLOWING PAGES IN THIS EXHIBIT ARE STATE-SPECIFIC RIDERS TO THE FRANCHISE AGREEMENT
RIDER TO THE CAPRIOTTI'S SANDWICH SHOP, INC. FRANCHISE AGREEMENT FOR USE IN CALIFORNIA
| Durango Drive, | Suite | 100, | Las Vegas, | Nevada | 89113 | (“we,” “us,” | or “our”), and | |---|---|---|---|---|---|---|---| this Agreement or any amendment thereto or any agreement to the contrary is
superseded by this condition.
IN WITNESS WHEREOF, each party has caused its duly authorized representative to sign and deliver this Rider on the date first above written.
CAPRIOTTI'S SANDWICH SHOP, INC.
Source: Item 23 — RECEIPTS (FDD pages 73–303)
What This Means (2025 FDD)
According to the 2025 Capriottis Sandwich Shop Franchise Disclosure Document, the ability of a franchisee to waive rights varies by state. In general, Capriottis Sandwich Shop cannot enforce waivers of claims under state franchise laws. Specifically, in Virginia, it is unlawful for Capriottis Sandwich Shop to use undue influence to induce a franchisee to surrender any rights, and any provision that does so may not be enforceable.
In Maryland, representations made by Capriottis Sandwich Shop are not considered a release, estoppel, or waiver of any liability incurred under the Maryland Franchise Registration and Disclosure Law. Franchisees in Maryland also retain the right to bring a lawsuit in Maryland for claims arising under that law, despite any arbitration obligations.
For franchisees in New York, the choice of law should not be considered a waiver of any right conferred upon the franchisor or the franchisee by Article 33 of the General Business Law of the State of New York. Furthermore, no statement, questionnaire, or acknowledgment signed by a franchisee can waive claims under state franchise law, including fraud in the inducement, or disclaim reliance on statements made by Capriottis Sandwich Shop or its representatives. Similarly, in North Dakota and Illinois, no statement, questionnaire, or acknowledgement signed by a franchisee can waive claims under state franchise law, including fraud in the inducement, or disclaim reliance on statements made by Capriottis Sandwich Shop or its representatives.