What happens when the Capriottis Sandwich Shop franchise agreement expires?
Capriottis_Sandwich_Shop Franchise · 2025 FDDAnswer from 2025 FDD Document
11.1 Franchisee shall immediately cease to operate the Franchised Restaurant and will not directly or indirectly represent to the public or hold itself out as a CAPRIOTTI'S SANDWICH SHOP franchisee with respect to such business.
11.2 Franchisee shall immediately and permanently cease to use in any manner all Franchisor Non-Mark Proprietary IP, methods, procedures and techniques used by or associated with the System, the Marks and distinctive forms, slogans, signs, symbols, logos and devices associated with the System.
11.3 Franchisee shall immediately return to Franchisor any property held or used by Franchisee which is owned by Franchisor and shall cease to use, and shall either destroy or convey to Franchisor, all signs, advertising materials, displays, stationary, forms and any other materials that bear or display the Marks.
11.4 Franchisee shall take such actions as may be necessary to cancel any assumed name or similar registration which contains the Mark "CAPRIOTTI'S" or any other Marks of Franchisor and Franchisee shall furnish Franchisor with evidence satisfactory to Franchisor of compliance with its obligation within thirty (30) days after termination or expiration of this Agreement.
11.5 Franchisee shall, if Franchisor so requests, assign to Franchisor any interest which Franchisee has in any lease for the Accepted Location.
In the event Franchisor does not elect to exercise its option to acquire any lease for the Accepted Location, and unless otherwise directed by Franchisor, Franchisee shall, within ten (10) days after termination or expiration of this Agreement, make such modifications and alterations to the Accepted Location as may be necessary to distinguish the appearance of the Accepted Location from that of other Franchised Restaurants and shall make such specific additional changes to it as Franchisor may reasonably request.
- 11.6 Franchisee shall promptly pay all sums owed to Franchisor.
Such sums shall include all damages, costs and expenses, including reasonable attorneys' fees, incurred by Franchisor as a result of the default and termination.
Any outstanding obligations to Franchisor shall give rise to and remain, until paid in full, a lien in favor of Franchisor against any and all of the personal property, furnishings, equipment, signs, fixtures and inventory owned by Franchisee located on the Premises on the date this Agreement is terminated.
Source: Item 22 — CONTRACTS (FDD page 73)
What This Means (2025 FDD)
According to the 2025 Capriottis Sandwich Shop Franchise Disclosure Document, when the franchise agreement expires, the franchisee must immediately cease operating the Franchised Restaurant and cannot represent themselves as a Capriottis Sandwich Shop franchisee. They must also stop using all of Capriottis Sandwich Shop's proprietary intellectual property, methods, procedures, and trademarks. This means the franchisee can no longer benefit from the brand recognition and operational systems they previously utilized. These restrictions are standard in franchising to protect the brand and system.
Upon expiration, the franchisee is obligated to return any property belonging to Capriottis Sandwich Shop and must either destroy or transfer all materials displaying Capriottis Sandwich Shop's trademarks, including signs, advertising materials, and forms. Additionally, the franchisee must take necessary steps to cancel any assumed name registrations containing the "CAPRIOTTI'S" name or any other Capriottis Sandwich Shop trademarks, providing evidence of compliance to Capriottis Sandwich Shop within 30 days. This ensures a clean break and prevents any potential confusion or misuse of the brand.
Furthermore, Capriottis Sandwich Shop has the option to request the franchisee to assign any interest in the lease for the location to them. If Capriottis Sandwich Shop does not exercise this option, the franchisee must modify the location to differentiate its appearance from other Capriottis Sandwich Shop restaurants within ten days of the agreement's expiration, making any additional changes reasonably requested by Capriottis Sandwich Shop. The franchisee is also responsible for promptly paying all outstanding sums owed to Capriottis Sandwich Shop, which may include damages, costs, and legal fees resulting from any default and termination. Any unpaid obligations will result in a lien in favor of Capriottis Sandwich Shop against the franchisee's personal property and equipment at the premises.