Does Capriottis Sandwich Shop require approval of the lease for the business premises?

According to Capriottis Sandwich Shop's 2025 Franchise Disclosure Document, if a franchisee does not own the business premises, Capriottis Sandwich Shop must first accept the lease. While the franchisee is responsible for selecting their own location, Capriottis Sandwich Shop retains the right to mandate that the lease includes a clause allowing them to take assignment of the lease without compensating the franchisee if the franchisee materially defaults under the lease, or if the Franchise Agreement terminates or is not renewed for any reason. Furthermore, a franchisee cannot relocate the business premises without obtaining prior written approval from Capriottis Sandwich Shop.

This requirement gives Capriottis Sandwich Shop significant control over the location of its franchises and ensures that the lease terms are acceptable to them. This protects Capriottis Sandwich Shop's interests in maintaining consistent brand standards and operational control.

For a prospective franchisee, this means that the lease negotiation process will involve Capriottis Sandwich Shop, adding an extra layer of complexity. The franchisee needs to ensure that the lease terms are not only favorable to them but also acceptable to Capriottis Sandwich Shop. The franchisee should carefully review the lease agreement with legal counsel to understand the implications of the assignment clause and the conditions under which Capriottis Sandwich Shop can take over the lease. This also means that if a franchisee wants to move locations, they need to get approval from Capriottis Sandwich Shop.