Is the initial franchise fee for Capriottis Sandwich Shop refundable?

According to the 2025 Capriottis Sandwich Shop Franchise Disclosure Document, the initial franchise fee is generally not refundable. Specifically, the development fee, which includes the initial franchise fee for the first restaurant under a Development Rights Agreement (DRA), is not refundable under any circumstances, even if the franchisee fails to comply with the development schedule and Capriottis Sandwich Shop terminates the DRA. The development fee covers the rights granted to the franchisee for reserving a specific territory.

However, the FDD states that each time a franchisee signs a Franchise Agreement for the next Capriottis Sandwich Shop restaurant to be constructed within the designated territory, the deposit related to that restaurant (part of the Development Fee) will be applied toward the initial franchise fee due for that restaurant. This leaves a balance of $20,000 of the initial franchise fee due at the time of signing. This indicates that while the initial $30,000 is non-refundable, it is applied towards the franchise fee of subsequent locations if the franchisee continues to develop restaurants within the territory.

Item 7 of the FDD notes that, with few exceptions such as security deposits and some utility deposits, expenditures in the table are not refundable. This reinforces the general understanding that initial investments in a Capriottis Sandwich Shop franchise, including the initial franchise fee, are typically non-refundable, highlighting the importance of careful consideration and due diligence before entering into a franchise agreement. Prospective franchisees should be aware of this policy and its implications for their investment.