Under what conditions do the consulting agreements for Capriottis Sandwich Shop expire?

According to Capriottis Sandwich Shop's 2025 Franchise Disclosure Document, the company entered into consulting agreements in 2016 with three members of its Board of Directors. These agreements outline the terms for consulting services provided to Capriottis Sandwich Shop. In 2024, the company incurred $394,065 in consulting fees, while in 2023, the fees amounted to $673,868. These expenses are categorized under general and administrative expenses within the company's consolidated statements of operation.

The consulting agreements with the Board members are set to expire under specific conditions. These agreements will terminate when the involved parties decide to sell a majority of their interest in Capriottis Sandwich Shop. Additionally, the agreements will also expire if Capriottis Sandwich Shop decides to sell the majority of its assets.

For a prospective franchisee, this information is relevant as it provides insight into the financial commitments and operational structure of Capriottis Sandwich Shop. The consulting agreements and their potential expiration upon a major sale could influence the future direction and management of the company, which could indirectly affect franchise operations and strategies. Understanding these conditions helps franchisees assess the stability and potential changes within the franchisor's organization.