When is the Technology Fee payable for a Capriottis Sandwich Shop franchise?
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 the 2025 Capriottis Sandwich Shop Franchise Disclosure Document, the Technology Fee is payable when you pay your Royalty Fee. While the document states that Capriottis Sandwich Shop does not currently charge this fee, they retain the right to implement it with a 30-day prior written notice to franchisees.
The Technology Fee is 0.65% of Gross Sales. These fees are intended to cover technology expenditures that Capriottis Sandwich Shop deems beneficial for the franchise system, including company-owned and affiliated 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.
It is important to note that even though franchisees pay the Technology Fee to Capriottis Sandwich Shop, they are still responsible for paying third-party vendors for the costs and support services related to their restaurant's computer system. Furthermore, Capriottis Sandwich Shop has no obligation to account for how they use the Technology Fees or ensure that individual stores directly benefit from these payments.