What is the purpose of the Technology Fee for Capriottis Sandwich Shop?
Capriottis_Sandwich_Shop Franchise · 2025 FDDAnswer from 2025 FDD Document
in which |
| Column 1 | Column 2 | Column 3 | Column 4 |
|---|---|---|---|
| Type of Fee(1) | Amount | Due Date | Remarks event the Due Date for the Royalty Fee will be the day and time we communicate to you. |
| Marketing Fund | Up to 4% of monthly Gross Sales(2) We currently charge 2% of monthly Gross Sales | Payable when you pay your Royalty Fee(2) | You must make contributions to the Marketing Fund. You also must pay us or the Marketing Fund for promotional or point-of purchase materials that you must use in connection with the Restaurant but which the Marketing Fund does not provide solely in consideration for your contributions. The annual costs for such materials will not exceed $2,500. |
| Service Management Group Fee | Currently $25 monthly | Payable when you pay your Royalty Fee(2) | This gives you access to the Service Management Group platform, providing detailed customer service analytics. We collect this amount from you and pay it directly to SMG, which is an unaffiliated third party. SMG has the right to increase its fee during the franchise term, in which case we have the right to increase the fee charged to you (without any upcharge). |
| Technology Fee | 0.65% of Gross Sales | Payable when you pay your Royalty Fee(2) | While we do not currently charge this fee, we have the right to begin collecting it on 30 days' prior written notice to you. Tech Fees cover technology expenditures we deem best for the franchise system (and company- and affiliated-owned Restaurants), including mobile training and operational performance |
| Column 1 | Column 2 | Column 3 | Column 4 |
| ---------------------------------------------------------------------------- | ------------------------------------------------------------------------------------------------------------------------------------------------------ | ------------------------------------- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |
| Type of Fee(1) | Amount | Due Date | Remarks software, cloud-based franchise-management solutions, IT phone support and database maintenance, digital marketing, online ordering and loyalty subscriptions, iPad mobile device management, and e learning solutions.(4) |
| Cooperative Advertising | Up to 2% of your monthly Gross Sales(2) u |
Source: Item 6 — OTHER FEES (FDD pages 13–18)
What This Means (2025 FDD)
According to the 2025 Capriottis Sandwich Shop Franchise Disclosure Document, the Technology Fee is intended to cover technology expenditures that the franchisor deems best for the franchise system, including company-owned and affiliated restaurants. While Capriottis Sandwich Shop does not currently charge this fee, they retain the right to begin collecting it with 30 days' prior written notice to franchisees.
The Technology Fees are intended to cover a range of technology-related expenses, such as mobile training and operational performance software, cloud-based franchise management solutions, IT phone support and database maintenance, digital marketing, online ordering and loyalty subscriptions, iPad mobile device management, and e-learning solutions. This suggests that the fee is designed to support and enhance various aspects of the Capriottis Sandwich Shop business through technology.
It is important to note that Capriottis Sandwich Shop has the right to allocate and spend the Technology Fees in its sole judgment, including for salaries, wages, benefits, direct technology program costs, and overhead expenses related to these activities. Franchisees are still responsible for paying third-party vendors for the costs and support services for their restaurant's computer system, despite paying the Technology Fee to the franchisor. Capriottis Sandwich Shop has no obligation to account to franchisees for the use of Technology Fees or ensure that franchisees directly or proportionally benefit based on their payments.