What acknowledgements are franchisees required to make regarding the Potbelly Sandwich Works SDAA?
Potbelly_Sandwich_Works Franchise · 2025 FDDAnswer from 2025 FDD Document
ve, further develop, and otherwise periodically modify.
- 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;
Source: Item 23 — RECEIPTS (FDD pages 79–355)
What This Means (2025 FDD)
According to Potbelly Sandwich Works' 2025 Franchise Disclosure Document, franchisees must acknowledge several key aspects of the Shop Development and Area Agreement (SDAA). These acknowledgements cover the franchisee's understanding of the agreement, the competitive nature of the restaurant industry, and the risks associated with the venture. Additionally, franchisees confirm they have not relied on any guarantees regarding potential revenues, profits, or the overall success of the business. These acknowledgements are designed to ensure that franchisees enter the agreement with a clear understanding of the business environment and the limitations of any assurances provided by Potbelly Sandwich Works.
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 goodwill of the Potbelly Sandwich Works brand. They also acknowledge conducting an independent investigation of the business, recognizing the competitive nature and constantly changing market conditions of the restaurant industry. This independent investigation is a common practice in franchising, where prospective franchisees are encouraged to conduct due diligence to assess the viability of the business opportunity.
Furthermore, the franchisee acknowledges that the nature of Potbelly Sandwich Works may evolve over time, that the investment involves business risks, and that their success largely depends on their own abilities, efforts, and financial resources. This acknowledgement underscores the importance of the franchisee's active role in managing and growing the business. Finally, the franchisee confirms they have not received or relied upon any guarantees or assurances regarding revenues, profits, or financial backing from any parent company or affiliate, reinforcing the understanding that the venture's success is not guaranteed and depends on various factors, including the franchisee's performance.
Potbelly Sandwich Works also requires franchisees to acknowledge and agree that time is of the essence under the SDAA and that their rights under the SDAA are subject to termination (without any cure opportunity) if they do not fully comply strictly with the development obligations provided in the development schedule. The franchisee acknowledges that Potbelly Sandwich Works may enforce the SDAA strictly.