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Roasting whole turkeys and beef on a daily basis gives a Capriotti’s sandwich a taste profile that customers can’t find elsewhere, and while that’s a tempting reason to consider buying a Capriotti’s franchise, the Item 19 in Capriotti’s disclosure document is even more enticing!
“How much will I earn?” The Item 19 will tell you
With fewer than 5% of franchise companies including an Item 19 in their disclosure documents, it’s exciting to find a sandwich shop that tells you right up front what you can expect to earn after investing your money.
Franchisors are not required to file an Item 19, which is essentially an earning’s claim. However, unless they file Item 19, franchisors are prohibited from discussing earnings with prospective franchisees. That makes it a little more difficult to invest in a franchise, although you can easily get earnings information from franchisees.
Capriotti’s Sandwich Shop tells you upfront that this is approximately a $350,000 investment. Third-party financing is available. Take-home pay varies depending on key costs, as discussed in this podcast with Bruce Evans, vice president of sales for the past 5 years.
Multi-unit ownership encouraged
At the time of this podcast, 38 Capriotti’s franchisees own 100 franchise outlets in 14 states. Multi-unit ownership is encouraged, although Evans points out that some franchisees prefer single-unit ownership.
Evans takes time to get to know prospects before selling a franchise. In fact, he points out that he’ll meet 100 prospects to sell just one unit. Finding people who are compatible with Capriotti’s vision and values is essential.
Even though Capriotti’s has existed for many years, it’s a relatively new franchise compared to other sandwich chains. Competition in the sandwich niche is fierce, and Capriotti’s admittedly doesn’t have the biggest war chest. However, Evans explains how Capriotti’s uses its marketing dollars to win customers.Tags: Due Diligence, FDD, franchise disclosure document, Item 19
Categorised in: Franchise Concepts
This post was written by John Hayes