Is the Service Management Group affiliated with Capriottis Sandwich Shop?
Capriottis_Sandwich_Shop Franchise · 2025 FDDAnswer from 2025 FDD Document
in which |
| Column 1 | Column 2 | Column 3 | Column 4 |
|---|---|---|---|
| Type of Fee(1) | Amount | Due Date | Remarks event the Due Date for the Royalty Fee will be the day and time we communicate to you. |
| Marketing Fund | Up to 4% of monthly Gross Sales(2) We currently charge 2% of monthly Gross Sales | Payable when you pay your Royalty Fee(2) | You must make contributions to the Marketing Fund. You also must pay us or the Marketing Fund for promotional or point-of purchase materials that you must use in connection with the Restaurant but which the Marketing Fund does not provide solely in consideration for your contributions. The annual costs for such materials will not exceed $2,500. |
Source: Item 6 — OTHER FEES (FDD pages 13–18)
What This Means (2025 FDD)
According to Capriottis Sandwich Shop's 2025 Franchise Disclosure Document, franchisees are required to pay a Service Management Group Fee. This fee is currently $25 monthly, due when the franchisee pays their Royalty Fee. This fee provides access to the Service Management Group platform, which offers detailed customer service analytics.
Capriottis Sandwich Shop collects this fee from the franchisee and then pays it directly to SMG. Importantly, the FDD states that SMG is an unaffiliated third party, meaning it is not owned or controlled by Capriottis Sandwich Shop. SMG has the right to increase its fee during the franchise term, and Capriottis Sandwich Shop, in turn, has the right to increase the fee charged to the franchisee without any additional markup.
This arrangement means that while Capriottis Sandwich Shop mandates the use of SMG's services and collects the fee, it does not control SMG's operations or pricing. A prospective franchisee should understand that any changes to SMG's fees will be passed on to them, and Capriottis Sandwich Shop will not absorb those costs.