Can the Potbelly Sandwich Works agreement be terminated by mutual written agreement of the parties?

According to the 2025 Potbelly Sandwich Works Franchise Disclosure Document, the SDAA (Shop Development Area Agreement) cannot be modified except by written agreement signed by both parties. This implies that a mutual written agreement is required to modify the SDAA, which could include termination if both parties agree. This clause ensures that any changes to the agreement, including termination, must be formally documented and agreed upon by both Potbelly Sandwich Works and the franchisee, providing a level of legal protection and clarity for both parties.

This requirement for a written agreement protects both the franchisee and Potbelly Sandwich Works by ensuring that any modifications or terminations are documented and agreed upon, preventing potential disputes arising from verbal agreements or misunderstandings. It aligns with standard franchising practices, where significant changes to contractual obligations require formal written consent to maintain clarity and enforceability.

Prospective franchisees should note that while the SDAA can be modified by written agreement, it does not guarantee that Potbelly Sandwich Works will agree to a termination. The franchisor will likely consider its own interests and the overall impact on the franchise system before agreeing to terminate an agreement. Therefore, franchisees should carefully consider the terms of the agreement and seek legal advice before signing to fully understand their rights and obligations.