Does Capriottis Sandwich Shop have the right to reject a site that does not meet its criteria?
Capriottis_Sandwich_Shop Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee must submit all information Franchisor requests when Franchisee proposes a site. Franchisor will not unreasonably withhold its acceptance of a site if, in Franchisor's and its affiliates' experience and based on the factors outlined above, the proposed site is not inconsistent with sites that Franchisor and its affiliates regard as favorable or that otherwise have been successful sites in the past for CAPRIOTTI'S Restaurants. However, Franchisor has the absolute right to reject any site not meeting its criteria or to require Franchisee to acknowledge in writing that a site Franchisee prefers 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 Restaurant. Applying criteria appearing effective with other sites might not accurately reflect the potential of all sites, and demographic or other factors included in or excluded from Franchisor's criteria could change, altering a site's potential. The uncertainty and instability of these criteria are beyond
Source: Item 22 — CONTRACTS (FDD page 73)
What This Means (2025 FDD)
According to the 2025 Capriottis Sandwich Shop Franchise Disclosure Document, Capriottis Sandwich Shop has the right to reject a site that does not meet its criteria. Capriottis Sandwich Shop will provide its current criteria for restaurant sites, including factors like population density, visibility, traffic flow, competition, accessibility, size, and other physical and commercial characteristics, to aid franchisees in the site-selection process.
Even if Capriottis Sandwich Shop provides information or recommendations about potential sites, it makes no guarantees about a site's suitability or the likelihood of approval. Franchisees must submit all requested information when proposing a site. Capriottis Sandwich Shop will not unreasonably withhold acceptance of a site if it aligns with favorable or successful past locations, based on the company's experience and the outlined factors.
However, Capriottis Sandwich Shop retains the absolute right to reject any site that does not meet its criteria. Alternatively, Capriottis Sandwich Shop may require the franchisee to acknowledge in writing that a preferred site is accepted but not recommended due to incompatibility with factors affecting site suitability. The FDD notes that the effectiveness of site selection criteria can change, and demographic or other factors may shift, altering a site's potential.
Capriottis Sandwich Shop is not responsible if a site fails to meet a franchisee's expectations due to the uncertainty and instability of these criteria, which are beyond the company's control. This means that while Capriottis Sandwich Shop offers guidance and has specific criteria, the ultimate success of the location is not guaranteed, and the franchisee bears the risk of site performance.