Are the Managing Owner's decisions binding for the Capriottis Sandwich Shop franchise?
Capriottis_Sandwich_Shop Franchise · 2025 FDDAnswer from 2025 FDD Document
complete an extensive onsite retraining program at the Franchised Restaurant for up to six (6) weeks. Franchisor may charge Franchisee Ten Thousand dollars ($10,000) for this retraining or additional training. Franchisee must pay this amount on demand.
- 8.21 To designate an owner holding at least twenty percent (20%) of its ownership interests to serve as its managing owner (the "Managing Owner"). At all times during the Initial Term, the Managing Owner must meet the following qualifications and any other standards Franchisor sets forth from time to time in the Manual or otherwise communicates to Franchisee:
- (a) Franchisor must approve the proposed Managing Owner in writing before the Effective Date. Franchisor has the right to approve or disapprove, as its deems best, any proposed change in the individual designated as the Managing Owner.
- (b) The Managing Owner is responsible for managing the Franchised Restaurant. The Managing Owner must have sufficient authority to make business
decisions for Franchisee that are essential to the Franchised Restaurant's effective and efficient operation. The Managing Owner must communicate directly with Franchisor regarding any Franchised Restaurant-related matters (excluding matters relating to labor relations and employment practices). The Managing Owner's decisions will be final and will bind Franchisee, Franchisor may rely solely on the Managing Owner's decisions without discussing the matter with another party, and Franchisor will not be liable for actions it takes based on the Managing Owner's decisions or actions.
Source: Item 15 — OBLIGATION TO PARTICIPATE IN THE ACTUAL OPERATION OF THE FRANCHISED BUSINESS (FDD page 49)
What This Means (2025 FDD)
According to the 2025 Capriottis Sandwich Shop Franchise Disclosure Document, the Managing Owner is responsible for managing the franchised restaurant and must have sufficient authority to make business decisions for the franchisee that are essential to the franchised restaurant.
Capriottis Sandwich Shop must approve the proposed Managing Owner in writing before the effective date and has the right to approve or disapprove any proposed change in the individual designated as the Managing Owner, as it deems best. The Managing Owner must meet qualifications and standards set forth by Capriottis Sandwich Shop in the manual or otherwise communicated to the franchisee.
If Capriottis Sandwich Shop determines that retraining or additional training is necessary because the franchised restaurant isn't operating in compliance with their standards, the Managing Owner and other managerial personnel may be required to participate in an extensive onsite retraining program at the franchised restaurant for up to six weeks. Capriottis Sandwich Shop may charge the franchisee $10,000 for this retraining or additional training, which the franchisee must pay on demand.