In the context of the Potbelly Sandwich Works franchise agreement, what is the 'Effective Date' referring to?
Potbelly_Sandwich_Works Franchise · 2025 FDDAnswer from 2025 FDD Document
POTBELLY SANDWICH SHOP SHOP DEVELOPMENT AREA AGREEMENT
| This Potbelly Sandwich Shop Development Area Agreement (this "SDAA") is made and entered | |
|---|---|
| into by and between Potbelly Franchising, LLC, an Illinois limited liability company with its principal | |
| business address at 500 West Madison Street, Suite 1000, Chicago, Illinois 60661 ("Franchisor," "we" or | |
| "us"), and | with |
| , a(n) | its |
| principal address at | ("Developer" or "you"), as of the date signed by |
| us and set forth opposite our signature on this SDAA (the "Eff |
Source: Item 23 — RECEIPTS (FDD pages 79–355)
What This Means (2025 FDD)
According to Potbelly Sandwich Works' 2025 Franchise Disclosure Document, the Effective Date refers to the date the Rider to the Potbelly Franchising, LLC Shop Development Area Agreement is made and entered into. This date is irrespective of when the parties involved actually sign the document. The rider is between Potbelly Franchising, LLC and the developer, and it supplements the Shop Development Area Agreement (SDAA).
This Effective Date is significant because it marks the point from which the terms and conditions outlined in the Rider become active and enforceable. It establishes a clear starting point for the legal relationship and obligations between Potbelly Sandwich Works and the developer concerning the Shop Development Area Agreement.
For a prospective Potbelly Sandwich Works developer, understanding the Effective Date is crucial. It determines when their rights and responsibilities under the Rider and the associated Shop Development Area Agreement begin. This includes adhering to development schedules, meeting operational standards, and fulfilling other obligations outlined in the agreement. The agreement specifies that the rider is signed at the same time as the SDAA.