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Capriotti's Sandwich Shop Franchise ProfileRestaurant Franchises > Quick-Service Restaurants |
What Are the Initial Investment Requirements for a Capriotti's Sandwich Shop Franchise?
To open a Capriotti's Sandwich Shop franchise, you should prepare for a significant initial investment ranging from $142,000 to $818,000. This includes a franchise fee of $40,000. It's important to have cash on hand within this range and meet a net worth requirement of $1,000,000 to $2,500,000. This financial commitment will cover various startup costs, including equipment, inventory, and location setup.
What Are the Ongoing Fees Associated with Capriotti's Sandwich Shop Franchise?
As a franchisee, you will be responsible for ongoing fees that include a royalty fee of 6% to 7% of your gross sales and a marketing fee of 2%. These fees support the brand's national marketing efforts and help maintain the quality and consistency of the Capriotti's experience across all locations. Understanding these recurring costs is crucial for maintaining profitability in your franchise operation.
What Is the Average Revenue Potential for Capriotti's Sandwich Shop Franchisees?
Capriotti's Sandwich Shop franchisees can expect an average annual revenue of approximately $843,484 per unit, with a median revenue of about $804,688. The revenue can vary significantly, with the lowest reported annual revenue at $312,048 and the highest reaching $1,685,426. This revenue potential highlights the viability of the Capriotti's brand in the competitive sandwich market.
How Quickly Can You Expect to Break Even with a Capriotti's Sandwich Shop Franchise?
Franchisees can anticipate a breakeven period of around 12 months. This rapid return on investment is appealing for many aspiring entrepreneurs. Additionally, the investment payback period is also estimated at 12 months, making Capriotti's Sandwich Shop an attractive option for those looking to enter the food service industry with a proven business model.
Capriotti's Sandwich Shop Franchise Financial Requirements
Below, you’ll find an overview of the initial investment needed to launch the business, along with the ongoing fees required by the franchisor to maintain operations over time.
The minimum total assets (minus liabilities) you must possess.
Net Worth Required:
The estimated period to recoup your total investment.
Investment Payback:
The initial fee paid to join the franchise system.
Franchise Fee:
Ongoing percentage of revenue paid to the franchisor.
Royalty Fee:
Regular contribution toward the franchise’s advertising fund.
Marketing Fee:
The estimated timeframe to recover your initial costs.
Breakeven Time:
The total amount required to launch the franchise.
Initial Investment:
The minimum liquid capital you must have on hand.
Cash Required:
The typical yearly revenue generated per franchise location.
Average Revenue:
The middle value of yearly revenue among franchise locations.
Median Revenue:
The largest reported annual revenue among franchisees.
Highest Revenue:
The smallest reported annual revenue among franchisees.
Lowest Revenue:
A broad sector defining similar types of franchise businesses.
Industry:
A more specific division within the broader industry.
Category:
The key individuals guiding the franchise’s strategy and growth.
Leadership:
The official business address of the franchisor’s headquarters.
Corporate Address:
Available financing options to help start the franchise.
Funding Year:
The main organization that owns the franchise brand.
Parent Company:
Capriotti's Sandwich Shop Franchise Unit Growth Summary
A breakdown of corporate, franchised, and total units, with yearly net changes.
Total Units
Franchised Units
Corporate Units
| Units | 2021 | 2022 | 2023 |
|---|---|---|---|
| Total Units | 114 | 120 | 145 |
| Net Change YoY | 6 | 25 | |
| Franchised Units | 100 | 110 | 135 |
| Net Change YoY | 10 | 25 | |
| Corporate Units | 14 | 10 | 10 |
| Net Change YoY | -4 | 0 |
Franchise Overview
Capriotti's Sandwich Shop is a fast-casual restaurant chain specializing in high-quality, made-to-order sandwiches. Founded in 1976 in Wilmington, Delaware, the brand has grown to become a favorite among sandwich lovers, known for its signature offerings like the Bobbie, a turkey, stuffing, and cranberry sauce sandwich. With a commitment to fresh ingredients and exceptional customer service, Capriotti's has successfully expanded across the United States, offering franchise opportunities to aspiring entrepreneurs looking to join a thriving brand.
Investment Requirements
To open a Capriotti's franchise, potential owners should expect an initial investment ranging from $142,000 to $818,000. This includes a franchise fee of $40,000, with ongoing royalty fees between 6% to 7% of gross sales. Additionally, franchisees are required to contribute 2% of their revenue towards marketing efforts. A minimum net worth of $1,000,000 is needed, along with liquid cash requirements that align with the overall investment range, making it essential for franchisees to plan their finances carefully.
Financial Performance
Capriotti's franchises demonstrate strong financial performance, with average annual revenue per unit reported at $843,484. The median annual revenue stands at $804,688, showcasing the brand's potential for profitability. Franchisees can expect a breakeven time of approximately 12 months, with an investment payback period also estimated at 12 months. This financial outlook makes Capriotti's an attractive option for investors seeking a solid return on investment in the fast-casual dining sector.
Operational Expenses
Franchisees should be aware of the operational expenses associated with running a Capriotti's location. The average total operating expense is approximately $145,077 annually. Key expenses include rent, which averages around $58,266, and royalty fees, estimated at $63,166. Additionally, national and local marketing fees contribute to overall costs. Understanding these expenses is crucial for franchisees to manage their budgets effectively and maintain profitability.
Growth and Expansion
Capriotti's has shown consistent growth over recent years, increasing its number of franchised units from 100 in 2021 to 135 in 2023. This upward trend reflects the brand's successful expansion strategy and commitment to entering new markets. With a total of 145 units across the U.S. as of 2023, Capriotti's is poised for continued growth, offering franchisees the opportunity to be part of a growing network in the competitive sandwich shop industry.
Franchise Support
Capriotti's provides comprehensive support to its franchisees, ensuring they have the tools necessary for success. This includes training programs, marketing assistance, operational guidance, and ongoing support from the corporate team. The franchise model emphasizes collaboration and communication, allowing franchisees to tap into the collective knowledge and experience of the Capriotti's network. By investing in franchisee success, Capriotti's aims to build a strong community of operators dedicated to delivering exceptional sandwiches and customer experiences.
Frequently Asked Questions
The initial investment for a Capriotti's franchise ranges from $142,000 to $818,000, which includes the franchise fee, equipment, and other startup costs.