Under what circumstances does Capriottis Sandwich Shop have a right of first refusal?
Capriottis_Sandwich_Shop Franchise · 2025 FDDAnswer from 2025 FDD Document
- 11.5 Franchisee shall, if Franchisor so requests, assign to Franchisor any interest which Franchisee has in any lease for the Accepted Location.
In the event Franchisor does not elect to exercise its option to acquire any lease for the Accepted Location, and unless otherwise directed by Franchisor, Franchisee shall, within ten (10) days after termination or expiration of this Agreement, make such modifications and alterations to the Accepted Location as may be necessary to distinguish the appearance of the Accepted Location from that of other Franchised Restaurants and shall make such specific additional changes to it as Franchisor may reasonably request.
Source: Item 22 — CONTRACTS (FDD page 73)
What This Means (2025 FDD)
According to the 2025 Capriottis Sandwich Shop Franchise Disclosure Document, Capriottis Sandwich Shop has the option to acquire any lease for the Accepted Location if a franchise agreement is terminated.
If Capriottis Sandwich Shop does not exercise its option to acquire the lease, the franchisee is obligated to modify the location within ten days of the agreement's termination or expiration. These modifications should distinguish the location's appearance from other franchised restaurants, with specific changes made as reasonably requested by Capriottis Sandwich Shop.
This clause ensures that Capriottis Sandwich Shop can maintain control over key locations and prevent potential brand confusion after a franchise agreement ends. For a prospective franchisee, this means that upon termination or expiration of the franchise agreement, Capriottis Sandwich Shop has the first right to take over the lease. If they decline, the franchisee must alter the location to remove any branding elements associated with Capriottis Sandwich Shop.