Capriotti's Sandwich Shop Franchise
Audited FinancialsRisk Score
Pending analysis
Investment Range
$142,000 - $818,000
Franchise Fee
$25,500
Min Cash Required
$10,000
Total US Locations
154
Business Summary
Capriotti's Sandwich Shop operates retail restaurants serving various submarine and deli sandwiches, along with related food items, in a casual sit-down and/or take-out style. Capriotti's Sandwich Shop also offers a Virtual Kitchen format, which focuses on preparing diverse products under one or more brands in a shared space for off-premises sales and delivery through third-party systems.
Corporate History
Capriotti's Sandwich Shop, Inc. was organized as a Nevada corporation on December 13, 2007. The company began offering franchises of its CAPRIOTTI'S SANDWICH SHOP restaurants in January 2008 after acquiring the system. Its wholly-owned or majority-owned subsidiaries have operated CAPRIOTTI'S restaurants for many years. In December 2020, Capriotti's Sandwich Shop acquired WZ Franchise, LLC and WZ International, LLC, which offer and grant franchises for WING ZONE Businesses in the United States and internationally.
Financial Overview
Investment Range
$142,000 - $818,000
Franchise Fee (Low)
$25,500
Franchise Fee (High)
$40,000
Minimum Cash Required
$10,000
Royalty %
6%
Marketing %
2%
Equipment Costs (Low)
$39,500
Equipment Costs (High)
$541,000
Working Capital
$40,000
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
The franchisor's financial condition, as reflected in its financial statements, calls into question Capriotti's Sandwich Shop's ability to provide services and support to its franchisees. The consolidated balance sheets show an accumulated deficit of $(24,293,775) and total equity (deficit) of $(3,702,160) as of December 31, 2023.
Financing Details
Capriotti's Sandwich Shop does not offer any direct or indirect financing to its franchisees. The franchisor also does not guarantee any notes, leases, or obligations for franchisees.
Performance Metrics
Total US Locations
154
Franchised Units
144
Corporate Units
10
Avg Square Footage
1,500
Franchising Since
2008
Legal & Compliance Analysis
Recent Litigation
No
Bankruptcy
No
Litigation Summary
Capriotti's Sandwich Shop has no litigation to report, as stated in Item 3 of its Franchise Disclosure Document.
Bankruptcy History
Capriotti's Sandwich Shop has no bankruptcy history to disclose, as stated in Item 4 of its Franchise Disclosure Document.
Agreement Terms
Initial Term
10 years
Renewal Term
10 years
Renewal Conditions
To renew, Capriotti's Sandwich Shop franchisees must formally request a business review no earlier than 12 months and no later than 9 months before their agreement expires, then notify the franchisor of their desire to renew at least 6 months before expiration. They must have substantially complied with all contractual obligations during the initial term and continue to do so until the term ends. Franchisees must retain occupancy rights for their restaurant's premises, and remodel, upgrade, and re-equip their restaurant to meet the then-current standards for new Capriotti's Sandwich Shop locations, regardless of cost. Additionally, they must sign the franchisor's then-current franchise agreement and related documents, which may include different terms and higher fees, and pay a successor-franchise fee of $10,000. Franchisees also need to sign a general release of claims against Capriotti's Sandwich Shop and its affiliates.
Training & Support Program
Franchisor Assistance
Capriotti's Sandwich Shop provides franchisees with various forms of assistance. Before opening, the franchisor offers expertise in installation, commencement, and operation of the System, including selecting and installing equipment, decor, layout, and signage. It provides advisory services for restaurant operation and initial training in Las Vegas for the Managing Owner and three other individuals, including two weeks of supervision and assistance at the restaurant around opening. Electronic access to a printable operations manual is also provided. Post-opening, Capriotti's Sandwich Shop offers ongoing advisory assistance for operations, advertising, and promotions, as well as refresher training programs at the franchisee's expense. The franchisor also supplies advertising and promotional plans for local use and advice through written materials. Inspections and evaluations of products and services are conducted as deemed necessary.
Initial Training Hours
245
Training Location
Las Vegas, NV and Online/virtual
Ongoing Support
Capriotti's Sandwich Shop provides ongoing advisory assistance to franchisees regarding restaurant operation, advertising, and promotions. It also offers refresher training programs for the franchisee and a designated employee at the franchisee's expense. Franchisees receive advertising and promotional plans and materials for local use, along with advice and written materials concerning management and operational techniques. The franchisor conducts inspections and evaluations of restaurants, products, and services as needed. Franchisees are required to attend up to two in-person annual conferences, conventions, training events, and meetings per year, totaling up to six days, plus travel time, at their own expense.
Franchise Requirements
Ideal Candidate Profile
Capriotti's Sandwich Shop requires franchisees to designate an individual owner with at least a 20% ownership interest to serve as the "Managing Owner." This Managing Owner is responsible for managing the restaurant, must have sufficient authority for business decisions, and communicate directly with Capriotti's Sandwich Shop on restaurant-related matters (excluding labor and employment). The Managing Owner and managerial employees are expected to devote their full-time energy to manage and operate the restaurant. If the Managing Owner is not the full-time general manager, two other individuals with primary operational responsibility must attend training. Capriotti's Sandwich Shop requires that managing owners and managers complete the initial training program and any necessary remedial or additional training if performance falls below standards.
Industry Experience Required
No
Management Experience Required
Yes
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
retail
Owner Participation
supervisory
Territory Type
limited
Staff Count
3
Territory Size Requirements
Capriotti's Sandwich Shop defines multi-unit development territories by various geographical factors such as radius, zip code, county boundaries, highways, physical landforms, and city or municipality boundaries. The size of the territory is determined based on the number of Capriotti's Sandwich Shop restaurants the franchisee commits to develop, local demographics, the number of distinct development areas, competitive businesses within the area, and site availability.
Staffing Notes
Capriotti's Sandwich Shop requires a Managing Owner, who is an individual owner with at least a 20% ownership interest, to be responsible for managing the restaurant. This Managing Owner, or a designated manager, and other managerial employees must dedicate their full-time efforts to managing and operating the restaurant. For Virtual Kitchen locations, the required labor in the space will be 2 to 3 employees. Additionally, two people (including the Managing Owner) must complete the full initial training program, and two additional employees must complete a two-week hourly team member training program. Capriotti's Sandwich Shop does not control the terms of employment agreements used with restaurant employees or labor relations practices.