When does the term of the Development Rights Agreement for Capriottis Sandwich Shop expire?
Capriottis_Sandwich_Shop Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section in the Development Rights Agreement | Summary |
|---|---|---|
| a. Length of the term | 6 | Term expires on date when final |
| CAPRIOTTI’S Restaurant under | ||
| Schedule opens for business or is | ||
| scheduled to open for business | ||
| (whichever is earlier). |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER, AND DISPUTE RESOLUTION (FDD pages 50–59)
What This Means (2025 FDD)
According to Capriottis Sandwich Shop's 2025 Franchise Disclosure Document, the Development Rights Agreement term expires when the final Capriottis Sandwich Shop restaurant under the schedule opens for business or is scheduled to open for business, whichever occurs earlier.
This means that a developer's rights to develop within a specific area end once they have opened all the restaurants they were obligated to open under the development schedule. If a developer fails to meet the development schedule, this can be considered a non-curable default, potentially leading to termination of the agreement by Capriottis Sandwich Shop.
Prospective developers should carefully review the development schedule outlined in their agreement and understand the implications of failing to meet those deadlines. They should also be aware that they have no right to renew or extend the development rights beyond the initial term.