When is the initial franchise fee due for a Capriottis Sandwich Shop?
Capriottis_Sandwich_Shop Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Expenditure | Amount1 | Method of Payment | When Due | Column5 To Whom Payment is Made |
|---|---|---|---|---|
| Franchise Fee2 | $40,000 | Lump Sum | When you sign Agreement | Us |
| Development | $10,000 | Lump Sum | When you sign | Us |
| Services Fee3 | Agreement |
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 18–26)
What This Means (2025 FDD)
According to the 2025 FDD, the initial franchise fee for a Capriottis Sandwich Shop is due when you sign the Franchise Agreement. The franchise fee is a lump sum payment of $40,000. If you sign a Development Rights Agreement, the development services fee of $10,000 for the first restaurant is due when you sign the Development Rights Agreement.
This means that a prospective franchisee must have the $40,000 franchise fee available at the time of signing the agreement to secure the rights to open a Capriottis Sandwich Shop. For those pursuing development rights, the $10,000 development fee is required upfront as well. This is a standard practice in franchising, as the initial fee compensates the franchisor for granting the franchise and providing initial support.
It's important to note that this fee is non-refundable, as stated elsewhere in Item 7 of the FDD. Therefore, potential franchisees should carefully consider their decision before signing the agreement and paying the fee. Understanding the timing and amount of this initial payment is a crucial step in evaluating the financial feasibility of investing in a Capriottis Sandwich Shop franchise.