What articles of the Potbelly Sandwich Works agreement are relevant to the definition of 'Fraud'?

According to the 2025 FDD, the Potbelly Sandwich Works franchise agreement addresses fraud in the context of waivers and disclaimers related to reliance on franchisor statements. Specifically, a provision is added to the Franchise Agreement that ensures no statement, questionnaire, or acknowledgment signed by a franchisee can waive claims under state franchise law, including fraud in the inducement.

This provision also prevents franchisees from disclaiming reliance on statements made by Potbelly Sandwich Works, its franchise sellers, or anyone acting on their behalf. This is significant because it protects the franchisee's right to pursue legal action if they believe they were fraudulently induced into signing the agreement based on misrepresentations or omissions by the franchisor.

This clause supersedes any other conflicting terms in any document executed in connection with the franchise, reinforcing the protection against inadvertently waiving fraud claims. This ensures that franchisees retain their legal rights regardless of other agreements or statements they may have made during the franchise commencement process. This is particularly relevant in states with franchise laws designed to protect franchisees from deceptive practices.