What is the standard royalty fee structure for a Capriottis Sandwich Shop franchise?
Capriottis_Sandwich_Shop Franchise · 2025 FDDAnswer from 2025 FDD Document
Without limiting the amounts that Franchisor may require Franchisee to spend for the various items and services described above in this Section 8.18, upon thirty (30) days' prior written notice to Franchisee, Franchisee agrees to begin paying Franchisor a technology fee ("Tech Fees") equal to point sixty-five hundredths of one percent (0.65%) of the Franchised Restaurant's Gross Sales. The Tech Fee is due and payable at the same time, in the same manner, and covering the same time period as the Royalty Fee, unless Franchisor otherwise specifies. Franchisor will use Tech Fees to fund the technology expenditures it deems best for the System (as well as company- and affiliated-owned CAPRIOTTI'S Restaurants), including, without limitation, mobile training and operational performance software, cloud-based franchisemanagement solutions, IT phone support and database maintenance, digital marketing, online ordering and loyalty subscriptions, iPad mobile device management, and e-learning solutions. Franchisor may allocate and spend Tech Fees in its sole judgment, including for salaries, wages, and benefits, direct technology program costs, and overhead expenses for the activities described above. Franchisor has no obligation to account to Franchisee or other franchisees for Franchisor's use of Tech Fees or to ensure that Franchisee or the Franchise Restaurant benefits directly or pro rata based on Franchisee's payments of Tech Fees.
Source: Item 22 — CONTRACTS (FDD page 73)
What This Means (2025 FDD)
According to the 2025 Capriottis Sandwich Shop Franchise Disclosure Document, franchisees must pay a technology fee equal to 0.65% of the Franchised Restaurant's Gross Sales. This Tech Fee is paid at the same time, in the same manner, and covering the same time period as the Royalty Fee, unless Capriottis Sandwich Shop specifies otherwise.
The Tech Fees are used by Capriottis Sandwich Shop to fund technology expenditures it deems best for the System, including company- and affiliated-owned Capriottis Sandwich Shop restaurants. These expenditures may include mobile training and operational performance software, cloud-based franchise management solutions, IT phone support and database maintenance, digital marketing, online ordering and loyalty subscriptions, iPad mobile device management, and e-learning solutions.
Capriottis Sandwich Shop has the sole judgment on how to allocate and spend Tech Fees, including for salaries, wages, and benefits, direct technology program costs, and overhead expenses for the activities described. Capriottis Sandwich Shop has no obligation to account to the franchisee or other franchisees for its use of Tech Fees or to ensure that the franchisee or the Franchise Restaurant benefits directly or pro rata based on the franchisee's payments of Tech Fees. The FDD does not specify the standard royalty fee structure.