Capriotti’s Sandwich Shop
Bottom line
- Total investment $422K – $818K including a $40K franchise fee, 6.0% ongoing royalty.
- Average unit revenue of $843K/year (median $805K). Estimated payback in 5.1 years.
- Rated STRONG with a risk score of 44/100. SBA loan default rate of 0.0% across 126 loans (below the industry average).
- System growing at 30.9% CAGR over 3 years with 154 total units — strong expansion trajectory.
Item 1 · who you're contracting with
The Franchisor
Yale framework · single-unit ROIC
Returns Analysis
Pulls Item 7 (investment) and Item 19 (revenue) from this brand's FDD into the Yale unlevered-ROIC formula. Override any input to stress-test it against your own assumptions.
The model · Yale framework
What would one Capriotti’s Sandwich Shop unit return on the cash you put in?
Unlevered ROIC · per unit
19%
Below typical band (30–60%)
Levered LBO scenario · Yale Crease Capital framing
What would 25 Capriotti’s Sandwich Shop units return on equity?
Equity IRR · 5-yr
49.9%
7.57× MOIC
Year-1 DSCR
1.88×
EBITDA ÷ debt service
Equity required
$1.3M
on $6.7M purchase
Total debt
$5.4M
SBA $3.4M + senior + seller note
Overview
About
Franchisees operate Capriotti's Sandwich Shop locations, managing day-to-day sandwich preparation, customer service, inventory, and staffing. They handle marketing at the local level, maintain food safety standards, and coordinate with corporate on supply chain and promotional initiatives across a 10-year lease term.
Item 7 · what it costs
The Vitals
Item 19
Financial Performance
Item 20 · unit dynamics
The Growth Chart
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 19 states with active franchisees
The Territory Map
Derived from franchisee contact records. Shows states with at least one current operator — not where the franchisor is registered to sell new units (that data is re-extracting in a future refresh).
States derived from franchisee phone area codes (Item 20). Approximate — ported numbers may show the original state, not the franchisee's current location.
Government records
SBA Loan Data
Aggregated from SBA 7(a) loan disclosures, public data unique to FranchiseVerdict.
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
Capriotti's presents moderate-to-caution risk: thin profit margins relative to investment, unprotected territory enabling cannibalization, sluggish growth, and undisclosed financial performance data limit investor confidence.
Score breakdown · what drove the 44 / 100 rating
- 01MEDNo Item 19 (Financial Performance Representations) disclosed — cannot verify if $121k average net income is achievable or representative
- 02MINORUnprotected territory creates direct competition risk; new units can open near existing franchisees, cannibalizing sales
- 03MINORSlow unit growth (6.7% YoY) suggests market saturation or franchisee dissatisfaction; only 10 net new units added to 154-unit system
- 04MINORHigh investment range ($422k–$818k) paired with modest average net income ($121k) yields 3–7 year payback period with no margin for underperformance
- 05HIGHNo litigation disclosed, but absence of transparency on disputes or settlement agreements is notable in QSR franchise litigation-prone sector
Severity inferred from the FDD text · not a regulatory classification
FDD Items 5, 6, 12, 17 · continued from Risk & Legal
Contract & Territory Detail
Item 11
Training & Operations
Item 20
Franchisee Contacts
Phone numbers extracted directly from this brand's FDD Item 20. After purchase, you'll also receive a list of validation questions tailored to this brand.
Franchisee contacts
78 numbers
One-time purchase · CSV download · Validation questions included
FDD download
Capriotti’s Sandwich Shop · FDD (2024) PDF