Is Capriottis Sandwich Shop responsible for leasing locations to franchisees?
Capriottis_Sandwich_Shop Franchise · 2025 FDDAnswer from 2025 FDD Document
a physical site inspection. We do not own locations for lease to franchisees.
We will not unreasonably withhold our acceptance of a site if, in our experience, the proposed site is not inconsistent with sites that we regard as favorable or that otherwise have been successful sites in the past for CAPRIOTTI'S SANDWICH SHOP restaurants. However, we have the absolute right to reject any site not meeting our criteria or to require you to acknowledge in writing that a site you prefer is accepted but not recommended due to its incompatibility with certain factors that bear on a site's suitability as a location for a CAPRIOTTI'S SANDWICH SHOP restaurant. It is your sole responsibility to undertake site selection activities and otherwise secure premises for your Restaurant. We will use our then-current standards for approving a potential site. (Franchise Agreement Section 1 and Site Selection Addendum)
Factors we consider in evaluating the suitability of proposed Restaurant sites include (1) a site's visibility from adjacent traffic arteries, (2) ease of entry from and exit to adjacent streets, (3) traffic patterns on adjacent arteries, (4) the size, density, and income levels of the population in the surrounding area, (5) daytime population density in the surrounding area, (6) the rental market in the area, and (7) the projected cost of leasehold improvements. If we and you do not agree on a site, you must continue looking for a site that we will approve and pay attention to the deadlines in your Development Rights Agreement and Franchise Agreement because you have certain opening deadlines.
There are site acceptance deadlines (as well as lease signing, Franchise Agreement signing, and opening deadlines) under the Development Rights Agreement, all of which we and you negotiate before the Development Rights Agreement is signed. If you fail to find an acceptable site by the applicable deadline, the Development Rights Agreement may be terminated.
Source: Item 11 — Franchisor's Assistance, Advertising, Computer Systems, and Training (FDD pages 33–42)
What This Means (2025 FDD)
According to the 2025 Capriottis Sandwich Shop Franchise Disclosure Document, Capriottis Sandwich Shop does not own locations for lease to franchisees. The document states that franchisees are responsible for site selection activities and securing premises for their restaurants. However, Capriottis Sandwich Shop's real estate department and proprietary site model will assist in the site selection process, subject to the franchisor's acceptance.
Capriottis Sandwich Shop has the right to reject any site that does not meet their criteria. They may also require franchisees to acknowledge in writing if a preferred site is accepted but not recommended due to incompatibility with certain factors. Franchisees must also submit any lease or sublease for written acceptance before signing, and Capriottis Sandwich Shop has the right, but not the obligation, to guide franchisees in the leasing process, but will not negotiate the lease or provide legal advice.
Prospective franchisees should seek local broker assistance in locating acceptable sites. The FDD indicates that the franchisee has no right to proceed with a site that Capriottis Sandwich Shop has not accepted. Certain new markets may require professional demographic analysis, and the franchisee will bear the pro-rata cost associated with this service.