What specifications does Capriottis Sandwich Shop ensure are included in the lease agreement?
Capriottis_Sandwich_Shop Franchise · 2025 FDDAnswer from 2025 FDD Document
ate first above written.
CAPRIOTTI'S SANDWICH SHOP, INC. INITIALS: ______: ______
CAPRIOTTI'S SANDWICH SHOP, INC.
RIDER
| TO THAT CERTAIN LEASE |
|---|
| DATED, 20 |
| (THE "FORM LEASE") |
| BETWEEN |
| A(N) |
| AS LANDLORD |
| AND |
| A(N) |
| AS TENANT |
| FOR THE PREMISES ("PREMISES") KNOWN AS: |
In the event of a conflict between the terms and conditions set forth within this Rider and the terms and conditions set forth in the Form Lease to which this Rider is attached, the terms and conditions set forth within this Rider shall govern and control.
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- Permitted Use. The Premises are leased to Tenant for the operation of a franchised restaurant which sells submarine sandwiches and associated food products. The Tenant may also use the Premises for promotions, celebrations, meetings, and other group functions where Tenant's services and products will be offered or sold.
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- Signage. Despite anything contained within the Form Lease to the contrary, Tenant shall, subject to the requirements of local law, have the right to utilize its standard signage and other proprietary marks and identification on both the exterior and within the interior of the Premises as approved by CAPRIOTTI'S SANDWICH SHOP, INC., a Nevada corporation and franchisor of the Capriotti's concept ("Franchisor").
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- Assignment and Subletting. Landlord's consent to an assignment of the Form Lease or subletting of the Premises shall not be required in connection with an assignment or subletting as a part of a merger, reorganization or sale of all or substantially all of Tenant's assets or business permitted by Franchisor under its Franchise Agreement with Tenant or an assignment or sublet to the Franchisor, any parent, subsidiary or permitted affiliated corporation of Tenant or Franchisor, or another CAPRIOTTI'S SANDWICH SHOP franchisee. Landlord shall approve as an assignee or sublessee any tenant who has become a transferee of the Franchise Agreement as a result of a permitted merger, reorganization or sale of all or substantially all of Tenant's assets. Tenant shall also have the right, without the consent of Landlord, to assign this Lease to a company incorporated or to be incorporated by Tenant or a partnership formed or to be formed by Tenant, provided that Tenant owns or beneficially controls a majority of the issued and outstanding shares of capital stock of the company or is the managing general partner of the partnership
INITIALS: ______: ______ CAPRIOTTI'S FA (2025) 1620420864.4
and such company or partnership operates a CAPRIOTTI'S SANDWICH SHOP under a Franchise Agreement with Franchisor.
- Notices; Opportunity to Cure. Copies of any demand letters, default notices or other similar notices of non-compliance ("Notice") sent by Landlord to Tenant shall also be sent to Franchisor at the following address:
Ashley Morris CAPRIOTTI'S SANDWICH SHOP, INC. 6056 S. Durango Drive, Suite 100 Las Vegas, NV 89113
In the event Tenant fails to cure or otherwise remedy the subject matter of the Notice, Landlord shall grant Franchisor the identical period of time in which to cure same (said cure period to commence immediately upon written notice from Landlord to Franchisor (at the address set forth in this Agreement) that Tenant has failed to cure in a timely manner) and Landlord agrees to accept the performance of Franchisor within said period of time as performance by Tenant according to the terms of the Form Lease.
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- Option to Lease. Landlord hereby agrees that, in the event of (a) the termination or expiration of the Franchise Agreement by and between Tenant and Franchisor; (b) the termination of the Form Lease for any cause whatsoever including, without limitation, a default by Tenant under the Form Lease after expiration of any applicable notice and cure periods; or (c) Tenant's failure to exercise any extension option contained in the Form Lease, Franchisor shall have the option to lease the Premises according to the same terms and conditions as are contained in the Form Lease, in accordance with the following:
- (a) Landlord agrees to promptly give written notice to Franchisor (at the address set forth in this Agreement) in the event the Form Lease is terminated as the result of a default by Tenant or in the event Tenant fails to exercise any remaining options to extend the term of the Form Lease;
- (b) If Franchisor elects to lease the Premises, Franchisor shall notify Landlord in writing of its election to exercise this option to lease within 30 days after (1) termination or expiration of the Franchise Agreement; (2) Franchisor's receipt of notice from Landlord that the Form Lease has been terminated; or (3) receipt of notice from Landlord that Tenant has failed to exercise an option to extend the term of the Form Lease;
- (c) If Franchisor elects to lease the Premises, Franchisor shall sign and deliver to Landlord a lease containing all of the same terms and conditions (including rental rates, terms and remaining options to extend the term of the Lease) as are contained in the Lease; provided, however, that Franchisor's leasehold interest shall not be subject to any defaults or claims that may exist between Landlord and Tenant and any lease shall permit Franchisor to assign the lease or sublease the Premises to a franchisee of Franchisor for use as a CAPRIOTTI'S SANDWICH SHOP franchised location; at which point, the new franchisee shall sign and deliver to Landlord a lease containing all of the same terms and conditions (including rental rates, terms and remaining options to extend the term of the Lease) as are contained in the Lease, and Franchisor shall be released from any and all liability under the lease; and
INITIALS:: (d) Nothing contained in this Agreement shall affect Landlord's right to recover any and all amounts due under the Form Lease from Tenant or to exercise any right of Landlord against Tenant as provided under the Form Lease.
Source: Item 22 — CONTRACTS (FDD page 73)
What This Means (2025 FDD)
According to Capriottis Sandwich Shop's 2025 Franchise Disclosure Document, the lease agreement for a franchised location includes several specifications to protect the brand and ensure operational consistency. The lease specifies that the premises are to be used for operating a franchised restaurant selling submarine sandwiches and related food products, and can also be used for promotions, meetings, and other group functions where the franchisee's services and products are offered.
The lease agreement also addresses signage, allowing the franchisee to use standard signage and proprietary marks, subject to local laws and the franchisor's approval. This ensures brand consistency across all locations. Additionally, the document outlines conditions for assignment and subletting, stating that landlord consent is not required for assignments related to mergers, reorganizations, or sales of the tenant's assets, or to the franchisor or another Capriottis Sandwich Shop franchisee. The tenant can also assign the lease to a company or partnership they control, provided the entity operates a Capriottis Sandwich Shop under a franchise agreement.
In the event the Franchise Agreement expires or is terminated, the lease stipulates that the franchisee must de-identify the location as a Capriottis Sandwich Shop. The landlord agrees to cooperate with Capriottis Sandwich Shop in enforcing this provision, including allowing the franchisor to remove signs and decor. If the franchisee fails to do so, Capriottis Sandwich Shop can complete the de-identification at the franchisee's expense. Furthermore, Capriottis Sandwich Shop has the option to lease the premises if the Franchise Agreement is terminated or expires, or if the tenant fails to exercise an extension option, ensuring continuity of the location if desired.
Finally, the lease agreement requires that copies of any default notices or non-compliance letters from the landlord to the tenant must also be sent to Capriottis Sandwich Shop. This allows Capriottis Sandwich Shop the opportunity to cure any issues if the tenant fails to do so, protecting the franchisor's interest in maintaining the location. These specifications collectively aim to maintain brand standards, protect the franchisor's interests, and ensure smooth transitions in various scenarios.