What acknowledgements does a franchisee make when signing the SDAA for Potbelly Sandwich Works?
Potbelly_Sandwich_Works Franchise · 2025 FDDAnswer from 2025 FDD Document
- 1.02 Your Acknowledgments.
You have read this SDAA and our Franchise Disclosure Document.
You understand the terms of this SDAA and accept them as being reasonably necessary to maintain the uniformity of our high-quality standards at all Potbelly Shops to protect and preserve the goodwill of the Marks and the integrity of the Branded System.
You have conducted an independent investigation of the business contemplated by this SDAA and recognize that the restaurant industry is highly competitive, with constantly changing market conditions.
You recognize that the nature of Potbelly Shops may change over time, that an investment in Potbelly Shops involves business risks and that the success of the venture is largely dependent on your own business abilities, efforts and financial resources.
You have not received or relied on: (a) any guaranty or assurance, express or implied, as to the revenues, profits or success of the business venture contemplated by this SDAA; or (b) any promises that any parent company or Affiliate will back us up financially or otherwise guarantee our performance.
- 1.03 Your Representations.
You and your Owners, if applicable, represent and warrant to us that: (a) neither you nor any of your Owners have made any untrue statement of any material fact or have omitted to state any material fact in obtaining the rights granted hereunder; (b) neither you nor any of your Owners have any direct or indirect legal or beneficial interest in any business that may be deemed a Competitive Business, except as otherwise fully and accurately disclosed in your franchise application submitted to us; and (c) the execution and performance of this SDAA will not violate any other agreement to which you or any of your Owners may be bound.
Source: Item 23 — RECEIPTS (FDD pages 79–355)
What This Means (2025 FDD)
According to the 2025 Potbelly Sandwich Works Franchise Disclosure Document, a franchisee acknowledges several key aspects upon signing the Shop Development Area Agreement (SDAA). These acknowledgments are designed to ensure the franchisee understands the nature of the business relationship and the competitive landscape.
Specifically, the franchisee acknowledges having read the SDAA and the Franchise Disclosure Document, understanding and accepting the terms as reasonably necessary to maintain uniformity and protect the brand's goodwill. They also confirm conducting an independent investigation of the business, recognizing the restaurant industry's competitive nature and the business risks involved with Potbelly Sandwich Works. The franchisee understands that the success of the venture depends largely on their own abilities, efforts, and financial resources.
Furthermore, the franchisee acknowledges not having received or relied on any guarantees or assurances regarding revenues, profits, or success, nor any promises of financial backing from parent companies or affiliates. The franchisee also represents that they have not made any untrue statements or omitted any material facts in obtaining the franchise rights and that they do not have any undisclosed interests in competitive businesses. They also confirm that entering into the SDAA does not violate any other agreements they may be bound by.
These acknowledgments are crucial as they highlight the franchisee's responsibility in understanding the business and its risks, ensuring they are not relying on unrealistic promises or guarantees from Potbelly Sandwich Works. This is a common practice in franchising, where franchisees are expected to conduct their own due diligence and understand the terms of the agreement they are entering into.