Does Capriottis Sandwich Shop have the right to change its ownership or form?
Capriottis_Sandwich_Shop Franchise · 2025 FDDAnswer from 2025 FDD Document
- (b) We have the right to change our ownership or form and/or assign this DRA to a third party without restriction.
Specifically and without limiting the foregoing, you agree that we have the right to sell our assets (including this DRA), the Marks, or the CAPRIOTTI'S SANDWICH SHOP® Restaurant franchise system to a third party; offer our ownership interests privately or publicly; merge, acquire other business entities, or be acquired by another business entity; and/or undertake a refinancing, recapitalization, leveraged buyout, securitization, or other economic or financial restructuring.
Source: Item 23 — RECEIPTS (FDD pages 73–303)
What This Means (2025 FDD)
According to the 2025 FDD, Capriottis Sandwich Shop has the right to change its ownership or form, or assign the Development Rights Agreement (DRA) to a third party without any restrictions. This means Capriottis Sandwich Shop can sell its assets, including the DRA, trademarks, or the entire franchise system.
Capriottis Sandwich Shop can also offer ownership interests privately or publicly, merge with or acquire other businesses, or be acquired by another business. Additionally, they can undertake refinancing, recapitalization, leveraged buyouts, securitization, or other economic or financial restructuring.
This clause in the DRA provides Capriottis Sandwich Shop with significant flexibility in managing and structuring its business, which is typical for established franchise systems. However, it also means that the future ownership and management of the Capriottis Sandwich Shop system could change, which may impact franchisees. Prospective franchisees should consider this potential for change and how it might affect their investment and the overall direction of the franchise system.