Does Capriottis Sandwich Shop have the right to assign the DRA to a third party?

According to the 2025 FDD, Capriottis Sandwich Shop has the right to assign the Development Rights Agreement (DRA) to a third party without any restrictions. This means that Capriottis Sandwich Shop can transfer its rights and obligations under the DRA to another entity without needing the franchisee's consent or meeting specific conditions.

This clause provides Capriottis Sandwich Shop with significant flexibility in managing its business operations. For example, Capriottis Sandwich Shop could sell its assets, including the DRA, trademarks, and the entire franchise system. They could also undergo mergers, acquisitions, or other financial restructurings. These actions could result in a new company taking over the franchisor's role, which would then manage the franchise network.

For a prospective franchisee, this means that the entity they initially contracted with might not be the one they deal with in the future. While the terms of the DRA should remain in effect, the new franchisor might have different management styles, business strategies, or financial resources. It is important for franchisees to understand this possibility and consider how such a change could impact their business. Franchisees should conduct thorough due diligence to assess the long-term stability and potential for changes in ownership of Capriottis Sandwich Shop.