When is the initial franchise fee due for a Capriottis Sandwich Shop franchise?
Capriottis_Sandwich_Shop Franchise · 2025 FDDAnswer from 2025 FDD Document
If Capriotti's Sandwich Shop, Inc. offers you a franchise, it must provide this disclosure document to you 14 calendar-days before you sign a binding agreement with, or make a payment to, the franchisor or an affiliate in connection with the proposed franchise sale.
[Michigan requires that we give you this disclosure document at least 10 business days before the execution of any binding franchise or other agreement or the payment of any consideration, whichever occurs first., New York requires that we give you this disclosure document at the earlier of the first personal meeting or 10 business days before the execution of the franchise or other agreement or the payment of any consideration that relates to the franchise relationship.]
If Capriotti's Sandwich Shop, Inc. does not deliver this disclosure document on time or if it contains a false or misleading statement, or a material omission, a violation of federal law and state law may have occurred and should be reported to the Federal Trade Commission, Washington, D.C. 20580 and the appropriate state agency identified on Exhibit A.
Source: Item 22 — CONTRACTS (FDD page 73)
What This Means (2025 FDD)
Based on the 2025 Capriottis Sandwich Shop Franchise Disclosure Document, the timing of the initial franchise fee payment is tied to the delivery of the FDD itself. Specifically, Capriottis Sandwich Shop must provide the disclosure document to a prospective franchisee at least 14 calendar days before the franchisee signs a binding agreement or makes any payment to Capriottis Sandwich Shop or its affiliates related to the franchise sale. This rule is designed to give potential franchisees adequate time to review the document and seek professional advice before committing to the franchise.
However, the disclosure also notes some state-specific variations. For example, Michigan requires the disclosure document to be provided at least 10 business days before the execution of any binding agreement or payment of consideration, whichever comes first. New York mandates disclosure at the earlier of the first personal meeting or 10 business days before the agreement or payment. These state laws highlight the importance of understanding the specific regulations in the state where the franchise will be located.
In practical terms, a prospective Capriottis Sandwich Shop franchisee should expect to receive the FDD well in advance of being asked to sign any agreements or pay any fees. This allows ample opportunity to carefully evaluate the franchise opportunity, consult with legal and financial advisors, and conduct thorough due diligence. Franchisees should confirm they receive the FDD within the mandated timeframe for their specific state to ensure compliance and protect their rights.
Failure by Capriottis Sandwich Shop to deliver the disclosure document on time, or if the document contains false, misleading, or omits material information, may constitute a violation of federal and state laws. In such cases, the disclosure advises that it should be reported to the Federal Trade Commission and the appropriate state agency.