Does Capriottis Sandwich Shop negotiate the lease or sublease for the franchisee?
Capriottis_Sandwich_Shop Franchise · 2025 FDDAnswer from 2025 FDD Document
You also must send us for our written acceptance, which we will not unreasonably withhold, any lease or sublease that will govern your occupancy and lawful possession of each CAPRIOTTI'S Restaurant site before you sign it. You have no right to sign any lease or sublease that we have not accepted in writing. We have the right (but no obligation) to guide you in the leasing process but will not negotiate the lease or sublease for you or provide any legal advice. (Development Rights Agreement Section 5(c))
Source: Item 11 — Franchisor's Assistance, Advertising, Computer Systems, and Training (FDD pages 33–42)
What This Means (2025 FDD)
According to the 2025 FDD, Capriottis Sandwich Shop does not negotiate the lease or sublease for franchisees. However, Capriottis Sandwich Shop may provide guidance in the leasing process. Franchisees are responsible for identifying potential restaurant sites within their development territory and must send any lease or sublease to Capriottis Sandwich Shop for written acceptance before signing. Capriottis Sandwich Shop agrees to use reasonable efforts to review and accept (or not accept) sites franchisees propose within 30 days after receiving all requested information and materials. Franchisees do not have the right to proceed with a site that Capriottis Sandwich Shop has not accepted.
Capriottis Sandwich Shop has the right to condition its acceptance of a proposed site, or a proposed site visit, on the franchisee first sending complete site reports and other materials, including photographs and digital recordings. Factors that Capriottis Sandwich Shop considers when evaluating potential sites include visibility from traffic arteries, ease of access, traffic patterns, population size and density, income levels, daytime population density, the rental market, and the projected cost of leasehold improvements.
If Capriottis Sandwich Shop and the franchisee do not agree on a site, the franchisee must continue looking for a site that Capriottis Sandwich Shop will approve, while also paying attention to the deadlines in their Development Rights Agreement and Franchise Agreement. Failure to find an acceptable site by the applicable deadline may result in the termination of the Development Rights Agreement. After signing the Franchise Agreement (if there is no Development Rights Agreement), the franchisee has 90 days to find and secure an acceptable site and 14 months to open the Restaurant for business. Failure to do so may result in the termination of the Franchise Agreement.