Capriotti’s Franchise Review 2026: Costs, Fees, News, Average Revenues and/or Profits

In this exclusive Franchise Chatter FDD Talk post, you’ll learn the following:

Section I – Estimated initial investment (franchise costs) for a Capriotti’s franchise, based on Item 7 of the company’s 2025 FDD

Section II – Initial franchise fee, royalty fee, and marketing fee for a Capriotti’s franchise, based on Items 5 and 6 of the company’s 2025 FDD

Section III – Number of franchised and company-owned Capriotti’s outlets at the start of the year and the end of the year for 2022, 2023, and 2024, based on Item 20 of the company’s 2025 FDD

Section IV – News updates on the Capriotti’s franchise opportunity

Section V – Presentation and analysis of Capriotti’s financial performance representations (average revenues and/or profits), based on Item 19 of the company’s 2025 FDD, including information on the:

• 2024 average, median, highest, and lowest unit volume for all franchised Capriotti’s Restaurants open during all of 2024, all franchised Capriotti’s Restaurants in “mature markets” as of December 31, 2024, all franchised Capriotti’s Restaurants open more than 2 years as of December 31, 2024, and all franchised Capriotti’s Restaurants open more than 10 years as of December 31, 2024, respectively

• 2024 average, median, highest, and lowest unit volume for all affiliate-owned Capriotti’s Restaurants open during all of 2024, all affiliate-owned Capriotti’s Restaurants in “mature markets” as of December 31, 2024, all affiliate-owned Capriotti’s Restaurants open more than 2 years as of December 31, 2024, and all affiliate-owned Capriotti’s Restaurants open more than 10 years as of December 31, 2024, respectively

• 2024 average and median total sales, prime cost, cost of goods sold, store level salary, store level bonus – salary, payroll and related expenses, operating expense, non-controllable expense, rent, royalty fee, national marketing fees, local marketing cooperative fees, and EBITDA for the 10 affiliate-owned Capriotti’s Restaurants in the State of Nevada that operated during all of 2024

Section VI – Key ratios, comparables, computations, and analyses for the Capriotti’s franchise opportunity (exclusive content for Platinum subscribers)

Section I – Capriotti’s Franchise Costs

• Capriotti’s franchise costs, based on Item 7 of the company’s 2025 FDD:

• Franchise Fee:  $40,000
• Development Services Fee:  $10,000
• Architectural/Engineering Fees and Project Management:  $15,000 to $35,000
• Professional Services:  $2,000 to $10,000
• Permits and Licensing:  $3,000 to $40,000
• Rent:  $3,500 to $8,000
• Security Deposits:  $5,000 to $20,000
• Leasehold Improvements:  $250,000 to $350,000
• Furniture, Fixtures, Equipment, and Smallwares:  $150,000 to $210,000
• Interior Décor:  $4,000 to $13,000
• Exterior Signage:  $8,000 to $25,000
• Menu Boards:  $1,000 to $3,000
• POS System:  $6,200 to $20,000
• Training:  $15,000 to $20,000
• Opening Inventory:  $7,000 to $15,000
• New Shop Opening Plan:  $30,000
• Pre-Opening Mock Operations:  $3,000 to $5,000
• Insurance (3 months):  $2,000 to $6,000
• Additional Funds (3 months):  $40,000 to $75,000
• Total Estimated Capriotti’s Franchise Costs (excluding real estate purchase and lease costs):  $594,700 to $935,000

Section II – Capriotti’s Initial Franchise Fee, Royalty Fee, and Marketing Fee

• Capriotti’s initial franchise fee, royalty fee, and marketing fee, based on Items 5 and 6 of the company’s 2025 FDD:

• Initial Franchise Fee:  $40,000
• Royalty Fee:  6% to 7% of monthly Gross Sales
• Marketing Fund:  up to 4% of monthly Gross Sales. Capriotti’s currently charges 2% of monthly Gross Sales.
• Cooperative Advertising:  up to 2% of monthly Gross Sales unless Cooperative votes for more. Capriotti’s currently requires you to contribute the full 2%.

Section III – Number of Franchised and Company-Owned Capriotti’s Outlets

Franchised

2022

• Outlets at the Start of the Year:  110
• Outlets at the End of the Year:  126
• Net Change:  +16

2023

• Outlets at the Start of the Year:  126
• Outlets at the End of the Year:  143
• Net Change:  +17

2024

• Outlets at the Start of the Year:  143
• Outlets at the End of the Year:  138
• Net Change:  -5

Company-Owned

2022

• Outlets at the Start of the Year:  14
• Outlets at the End of the Year:  10
• Net Change:  -4

2023

• Outlets at the Start of the Year:  10
• Outlets at the End of the Year:  10
• Net Change:  0

2024

• Outlets at the Start of the Year:  10
• Outlets at the End of the Year:  15
• Net Change:  +5

Section IV – News Updates on the Capriotti’s Franchise

• Capriotti’s Launches ’50-50-50′ Franchise Incentive Program

• Capriotti’s Builds on Breakout 2025 Momentum, Poised for Accelerated Franchise Growth for Golden Anniversary in 2026

• The 2026 Opportunity Map: Where Capriotti’s Is Expanding

• Capriotti’s Sandwich Shop Builds Momentum with Growth, Innovation, and Industry Recognition

• From First Day Frenzy to Sustained Success: Capriotti’s Sandwich Shops Thrive Across the U.S.

• Capriotti’s CEO Ashley Morris on Growth and Brand Integrity

• Capriotti’s Did Not Rank on Entrepreneur’s 2026 Franchise 500 List

Section V – Financial Performance Representations (Average Revenues and/or Profits) for the Capriotti’s Franchise (Item 19, 2025 FDD)

• This historical financial performance representation reflects certain actual operating results for the franchised and affiliate-owned Capriotti’s Restaurants described below during the 2024 calendar year.

• All of the Capriotti’s Restaurants (both franchised and affiliate-owned) whose information is included in this Item 19 are substantially similar to one another in terms of products and services offered and substantially similar to the Capriotti’s Restaurants for which Capriotti’s offers franchises in the disclosure document.

• Capriotti’s continues to shore up national distribution, improve operational efficiency and performance, enhance training programs, sign competitive vendor contracts, negotiate national pricing with delivery service providers, and enhance national and local marketing efforts.

• The “traditional” or “brick and mortar” Capriotti’s Restaurants disclosed in this Item 19 operate within a retail center, on a stand-alone basis, or at an in-line location with other businesses and have prominent exterior and interior branding. These Capriotti’s Restaurants operate a minimum of 10 hours per day, 7 days a week.

• The operational system is consumer-facing, directly serving products to consumers through dine-in and carryout options and indirectly serving consumers through delivery-service providers.

• The first portion of this financial performance representation discloses the actual unaudited historical average, median, and high/low annual Gross Sales during 2024 for all franchised (a total of 120 in 2024) and affiliate-owned (a total of 13 in 2024) traditional Capriotti’s Restaurants in the United States that were open and operating during all of 2024. (The 13 affiliate-owned Capriotti’s Restaurants include 3 franchised Restaurants—2 in Nevada and 1 in Pennsylvania—that Capriotti’s reacquired from franchisees during February and October 2024 and therefore were affiliate-owned Restaurants as of the end of 2024.)

• It also discloses the actual unaudited historical average, median, and high/low annual Gross Sales during 2024 of: (i) the franchised (a total of 59 in 2024) and affiliate-owned (a total of 13 in 2024) traditional Capriotti’s Restaurants that operate in “mature markets”; (ii) the franchised (a total of 101 in 2024) and affiliate-owned (a total of 13 in 2024) traditional Capriotti’s Restaurants that had been open for more than 2 full years as of December 31, 2024; and (iii) the franchised (a total of 51 in 2024) and affiliate-owned (a total of 9 in 2024) traditional Capriotti’s Restaurants that had been open for more than 10 full years as of December 31, 2024.

• This financial performance representation does not include the results of the following 39 Restaurants operating under the Capriotti’s Mark: (a) 14 traditional franchised and 2 affiliate-owned Restaurants that opened during 2024 (and therefore were not open for the full 2024 calendar year); (b) 16 traditional franchised Restaurants that permanently closed during 2024 (and therefore were not open for the full 2024 calendar year); (c) 3 franchised Restaurants that operated at non-traditional locations (and are not Capriotti’s prototypical franchised Restaurants); and (d) 4 traditional franchised Restaurants with limited operating hours (less than 50 hours per week during 2024, while Capriotti’s standard operating hours are a minimum of 70 hours per week).

• Besides the annual Gross Sales of all traditional franchised and affiliate-owned Capriotti’s  Restaurants in the United States that were open and operating during all of 2024 (including the 3 franchised Restaurants that Capriotti’s reacquired from franchisees during 2024 and therefore were affiliate-owned Restaurants as of the end of 2024), the second portion of this financial performance representation contains (i) actual partial unaudited operating financial statements for 2024 for each of 10 affiliate-owned and operated traditional Capriotti’s Restaurants that were open and operated by Capriotti’s during all of 2024 (not including the 3 franchised Restaurants that Capriotti’s reacquired from franchisees during 2024), and (ii) an actual average and median partial unaudited operating financial statement for 2024 for all 10 of those affiliate-owned and operated traditional Capriotti’s Restaurants.

• Capriotti’s obtained the gross sales information for franchised Restaurants from unaudited sales reports submitted by franchisees.

• “Gross Sales” is currently defined in Capriotti’s Franchise Agreement as the total of all revenue and other consideration you generate from operating the Restaurant whether from sales for cash or credit, and irrespective of collection, including sales of merchandise, products, and services, excluding only (or, if applicable, reduced only by) the following: sales tax if paid to the appropriate government authorities; proceeds from the sale of equipment not in the ordinary course of business; promotional discounts you initiate and formally request and Capriotti’s pre-approves in writing, provided physical evidence of the promotion is retained; discounts granted on food purchased by employees for their own consumption; and any other exclusions or reductions Capriotti’s specifically identifies (although without any obligation to do so) in the Manual.

• The actual historical average, median, and high/low annual Gross Sales volumes reported below do not reflect the costs of sales, operating expenses, or other costs or expenses that must be deducted from the Gross Sales figures to obtain your net income or profit.

Part 1 – Sales Volume Information

Franchised Restaurants

• Non-traditional Restaurants and those that operate less than 50 hours per week are excluded from all columns.

2024 Results for All Franchised Restaurants Open During All of 2024

• Number of Restaurants in Range:  120
• Average Unit Volume:  $835,358
• Highest Sales:  $1,728,693
• Lowest Sales:  $410,584
• Number and Percentage of Restaurants Exceeding Average:  52 / 43%
• Median Unit Volume:  $803,670

• Average Unit Volume of Top 25th Percentile:  $1,270,078
• Highest Sales:  $1,728,693
• Lowest Sales:  $1,023,618
• Number and Percentage of Restaurants in Top 25th Percentile Exceeding Average:  9 / 30%
• Median Unit Volume of Top 25th Percentile:  $1,222,205

• Average Unit Volume of Bottom 25th Percentile:  $526,335
• Highest Sales:  $595,133
• Lowest Sales:  $410,584
• Number and Percentage of Restaurants in Bottom 25th Percentile Exceeding Average:  14 / 47%
• Median Unit Volume of Bottom 25th Percentile:  $537,775

2024 Results for All Franchised Restaurants Open in Mature Markets as of December 31, 2024

• Mature markets in this table are the States of Delaware, Maryland, Nevada, and Pennsylvania. There were 59 franchised Restaurants in those states that were operational during the entire 2024 calendar year.

• The first Capriotti’s Restaurant in one of these states opened in June 1976. The most recent Capriotti’s Restaurant opened in one of these states in February 2024.

• Number of Restaurants in Range:  59
• Average Unit Volume:  $889,226
• Highest Sales:  $1,711,891
• Lowest Sales:  $485,676
• Number and Percentage of Restaurants Exceeding Average:  21 / 35%
• Median Unit Volume:  $850,977

• Average Unit Volume of Top 25th Percentile:  $1,277,794
• Highest Sales:  $1,711,891
• Lowest Sales:  $966,469
• Number and Percentage of Restaurants in Top 25th Percentile Exceeding Average:  6 / 40%
• Median Unit Volume of Top 25th Percentile:  $1,271,852

• Average Unit Volume of Bottom 25th Percentile:  $607,242
• Highest Sales:  $684,355
• Lowest Sales:  $485,676
• Number and Percentage of Restaurants in Bottom 25th Percentile Exceeding Average:  7 / 46%
• Median Unit Volume of Bottom 25th Percentile:  $615,494

2024 Results for All Franchised Restaurants Open More Than 2 Years as of December 31, 2024

• Number of Restaurants in Range:  101
• Average Unit Volume:  $831,414
• Highest Sales:  $1,647,330
• Lowest Sales:  $460,693
• Number and Percentage of Restaurants Exceeding Average:  45 / 45%
• Median Unit Volume:  $984,482

• Average Unit Volume of Top 25th Percentile:  $1,175,028
• Highest Sales:  $1,647,330
• Lowest Sales:  $950,403
• Number and Percentage of Restaurants in Top 25th Percentile Exceeding Average:  8 / 32%
• Median Unit Volume of Top 25th Percentile:  $1,133,626

• Average Unit Volume of Bottom 25th Percentile:  $558,406
• Highest Sales:  $655,516
• Lowest Sales:  $460,964
• Number and Percentage of Restaurants in Bottom 25th Percentile Exceeding Average:  13 / 52%
• Median Unit Volume of Bottom 25th Percentile:  $570,831

2024 Results for All Franchised Restaurants Open More Than 10 Years as of December 31, 2024

• Number of Restaurants in Range:  51
• Average Unit Volume:  $880,331
• Highest Sales:  $1,647,330
• Lowest Sales:  $485,676
• Number and Percentage of Restaurants Exceeding Average:  22 / 43%
• Median Unit Volume:  $874,436

• Average Unit Volume of Top 25th Percentile:  $1,212,266
• Highest Sales:  $1,647,330
• Lowest Sales:  $950,403
• Number and Percentage of Restaurants in Top 25th Percentile Exceeding Average:  5 / 38%
• Median Unit Volume of Top 25th Percentile:  $1,124,533

• Average Unit Volume of Bottom 25th Percentile:  $626,034
• Highest Sales:  $734,489
• Lowest Sales:  $485,676
• Number and Percentage of Restaurants in Bottom 25th Percentile Exceeding Average:  8 / 62%
• Median Unit Volume of Bottom 25th Percentile:  $660,768

Affiliate-Owned Restaurants

2024 Results for All Affiliate-Owned Restaurants Open During All of 2024

• Number of Restaurants in Range:  13
• Average Unit Volume:  $964,827
• Highest Sales:  $1,470,356
• Lowest Sales:  $616,672
• Number and Percentage of Restaurants Exceeding Average:  6 / 46%
• Median Unit Volume:  $948,539

2024 Results for All Affiliate-Owned Restaurants Open in Mature Markets as of December 31, 2024

• Mature markets in this table are the States of Nevada and Pennsylvania. There were 12 affiliate-owned Restaurants in Nevada and 1 affiliate-owned Restaurant in Pennsylvania that were operational during the entire 2024 calendar year (including the 3 franchised Restaurants—2 in Nevada and 1 in Pennsylvania—that Capriotti’s reacquired from franchisees during February and October 2024 and therefore were affiliate-owned Restaurants as of the end of 2024).

• The first Capriotti’s Restaurant opened in Nevada in April 1993. The most recent Capriotti’s Restaurant opened in Nevada in June 2020.

• Number of Restaurants in Range:  13
• Average Unit Volume:  $964,827
• Highest Sales:  $1,470,356
• Lowest Sales:  $616,672
• Number and Percentage of Restaurants Exceeding Average:  6 / 46%
• Median Unit Volume:  $948,539

2024 Results for All Affiliate-Owned Restaurants Open More Than 2 Years as of December 31, 2024

• Number of Restaurants in Range:  13
• Average Unit Volume:  $964,827
• Highest Sales:  $1,470,356
• Lowest Sales:  $616,672
• Number and Percentage of Restaurants Exceeding Average:  6 / 46%
• Median Unit Volume:  $948,539

2024 Results for All Affiliate-Owned Restaurants Open More Than 10 Years as of December 31, 2024

• Number of Restaurants in Range:  9
• Average Unit Volume:  $898,343
• Highest Sales:  $1,470,356
• Lowest Sales:  $616,672
• Number and Percentage of Restaurants Exceeding Average:  3 / 33%
• Median Unit Volume:  $744,028

Part 2 – Income Statement Information

Affiliate-Owned Restaurants

Average of 10 Affiliate-Owned Restaurants Operated for a Full Year in 2024

Total Sales:  $1,011,285 (100.00%)

Total Prime Cost:  $536,066 (53.01%)

• Total Cost of Goods Sold:  $319,118 (31.56%)
• Store Level Salary:  $56,649 (5.60%)
• Store Level Bonus – Salary:  $2,420 (0.24%)
• Total Payroll and Related:  $216,948 (21.45%)

Total Operating Expense:  $158,784 (15.70%)

Total Non-Controllable Expense:  $157,049 (15.53%)

• Total Rent:  $60,869 (6.02%)
• Royalty Fee:  $55,268 (5.47%)
• National Marketing Fees:  $18,772 (1.86%)
• Local Marketing Cooperative Fees:  $18,772 (1.86%)

EBITDA (5.47% Royalty Fee):  $159,386 (15.76%)

Royalty Fee:  $70,790 (7.00%)

EBITDA (7.00% Royalty Fee):  $143,864 (14.23%)

• The Restaurants in this category represent 10 affiliate-owned Restaurants in the State of Nevada (excluding the 2 franchised Restaurants in Nevada that Capriotti’s reacquired from franchisees during 2024).

• Total Cost of Goods Sold. This includes the total cost of all food, beverages, and paper goods used in the Restaurants.

• The average Cost of Goods Sold in markets for the affiliate-owned Restaurants from the table above for 2024 was $319,118 or 31.56% of total sales. A franchisee in a new market with less than 3 open Restaurants could expect that its Cost of Goods Sold will be higher, likely ranging between 1% and 2% of total sales. Some proprietary items might not be stocked by Capriotti’s local distributor, causing an increase in freight costs. If compared to the average above, a 2% increase would increase the average Cost of Goods Sold to approximately $325,500 or 32.19% of total sales.

• Store Level Salary. This is the General Manager’s salary. Each affiliate-owned Restaurant has one General Manager.

• Store Level Bonus – Salary. Each General Manager has the opportunity to earn a bonus based on his or her management of Cost of Goods Sold and Labor.

• Total Payroll and Related. This includes all salary and hourly wages, bonuses, taxes, and benefits paid at each affiliate-owned Restaurant.

• Total Prime Cost. This is the sum of Cost of Goods Sold plus Total Payroll and Related.

• Total Operating Expense. This includes comps, promos, cleaning supplies, linen, uniforms, equipment (purchases and rentals), repairs and maintenance, pest control, marketing and advertising, delivery expense, music, technology, telephone, permits, license, security, office supplies, postage, bank charges, credit card fees, and professional services.

• Total Rent. This includes base rent, common area maintenance, property tax, insurance, and (at some of the company-owned locations) a fee to be included on monument or pylon signs.

• Royalty Fee. Two affiliate-owned Restaurants pay a Management Fee equal to a 6% Royalty Fee. In this example, Capriotti’s takes into account the payment of Royalty Fees for all 10 locations. Royalties are not paid on discounts or couponing. Capriotti’s accounting system breaks up the 12 months into 13 separate 4-week accounting periods. This table represents the Royalty Fee of 6%, which would be paid by a multi-unit developer under the terms of an Area Development Agreement or Development Rights Agreement (rather than the 7% Royalty Fee payable by a franchisee who operates a single Restaurant).

• Marketing Fee – National. Each affiliate-owned Restaurant contributes to the National Marketing Fund. While Capriotti’s has the right to collect 4% towards the National Marketing Fund, it currently collects 2%. In this example, Capriotti’s takes into account the payment of National Marketing Fees for all 10 locations. Capriotti’s accounting system breaks up the 12 months into 13 separate 4-week accounting periods.

• Marketing Fees – Coop. All 10 affiliate-owned Restaurants contribute to the Las Vegas Cooperative. In this example, Capriotti’s takes into account the payment of Marketing Coop Fees for all 10 locations. Capriotti’s accounting system breaks up the 12 months into 13 separate 4-week accounting periods.

• Total Non-Controllable Expense. This includes total rent, in some instances personal property tax, electricity, gas, sewer, trash removal, water, TV, Management Fee (Royalty), Marketing Fees – National Fund and Local Cooperative, and accounting fees.

• EBITDA. This calculation uses the following formula (Total Sales minus Total Prime Cost minus Total Operating Expense minus Total Non-Controllable Expense = EBITDA).

Section VI – Capriotti’s Franchise Ratios, Comparables, Computations, and Analyses (Exclusive Content for Platinum Subscribers) ⬇️