Capriottis
Capriottis offers a franchise opportunity to operate CAPRIOTTI'S SANDWICH SHOP restaurants serving submarine and deli sandwiches in casual sit-down and take-out formats. Known for its diverse menu options, this franchise is part of the quick-service restaurant industry.
About Capriottis
Capriotti's Sandwich Shop, Inc. is a fast casual restaurant chain in the United States. The restaurant chain was founded in Wilmington, Delaware in 1976. As of July 2025, Capriotti's has more than 175 company-owned and franchise locations in 33 states.
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Capriottis franchise FAQ
How much does it cost to open one — the total initial investment?
The total initial investment necessary to begin operation of a CAPRIOTTI'S SANDWICH SHOP restaurant, including development rights for at least 3 locations, ranges from $442,000 to $838,000 for traditional locations and from $162,000 to $341,000 for Virtual Kitchen locations [p.25]. This includes the initial franchise fee, development fee, and other costs as specified in the FDD [p.1, p.21, p.23].
What is the initial franchise fee?
The initial franchise fee is $30,000 for each CAPRIOTTI'S Restaurant to be constructed and developed under this Development Rights Agreement, with a balance of $20,000 due at signing after applying a deposit related to that restaurant (which is part of the Development Fee). This fee is fully earned upon payment and non-refundable. [p.143]
What are the ongoing royalty and advertising fees?
Ongoing royalties are calculated as a percentage of the franchisee's total gross sales, with the exact rate not specified but typically 30% based on the valuation method described [p.273]. These royalties are recognized when sales occur and are considered variable consideration related to the performance obligation to maintain intellectual property licensing [p.237]. Advertising contributions from franchisees are also recorded as a component of franchise contributions for advertising services, billed and paid monthly [p.261].
How long is the initial franchise agreement, and can I renew it?
This isn't specified in the excerpts.
Can I sell or transfer my franchise, and what does that require?
According to the FDD, you cannot freely sell or transfer your franchise without the franchisor's approval. Instead, you must obtain a true and complete copy of a bona fide, executed written offer from a responsible and fully-disclosed buyer, which includes details on payment terms, financing sources, and an earnest money deposit of at least 5% of the proposed purchase price [p.119]. This offer must be sent to the franchisor for their review before any sale or transfer can proceed [p.119].
On what grounds can the franchisor terminate the agreement?
The franchisor may terminate the agreement on any grounds available by law [p.164]. Additionally, the franchisor can terminate the agreement if the franchisee fails to comply with any lawful provision of the franchise agreement and does not cure such failure within a reasonable time frame [p.5(C)].
What financial requirements — net worth and liquid capital — do I need to qualify?
To qualify, there is no specific mention of minimum net worth or liquid capital required [p.44]. However, you must demonstrate sufficient capital and managerial resources to operate multiple units if your existing restaurant is meeting operational benchmarks satisfactorily. This isn't specified in the excerpts for exact financial requirements.
Do I get an exclusive or protected territory?
No, as a single-unit franchisee, you do not receive an exclusive territory and have no territorial protection whatsoever [p.43]. This means you may face competition from other franchisees, outlets owned by the company, or competitive brands that the company controls [p.45].
What training and ongoing support does the franchisor provide?
The franchisor provides both pre-opening services, such as initial training for the Managing Owner and additional employees [p.40], and ongoing services including management of the advertising fund contributions, development of training materials, menu items, and restaurant monitoring [p.236]. This support is considered a single performance obligation combined with the Franchise Right [p.260]. The franchisor also allows for on-site training and assistance upon request, though it is not mandatory and would be at the franchisee's cost [p.42].
How many franchised outlets are there, and how many have closed or been terminated?
The FDD does not provide a specific number for the total number of franchised outlets. However, it states that 7 traditional franchised Restaurants permanently closed during 2023 [p.61(b)], and 8 non-traditional locations also closed under similar circumstances but are not included in Item 19 as they are non-prototypical [p.61(c)].
Does the franchisor share any financial performance or earnings information?
The franchisor may provide actual operating results of franchised and affiliate-owned CAPRIOTTI'S Restaurants, but only if there is a reasonable basis for this information and it is included in the disclosure document. This information reflects certain actual operating results during the 2023 calendar year [p.60]. However, the franchisor does not make any financial performance representations other than the one specified, nor do they authorize their employees or representatives to make such representations [p.68].
What am I restricted to selling, and where must I buy supplies?
You are not restricted to selling only certain items; however, you may have to buy or lease items from the franchisor or a limited group of suppliers they designate, which might be more expensive than other options [p.3]. This isn't specified in the excerpts regarding where you must buy supplies specifically for CAPRIOTTI'S Restaurants.