What is the definition of 'Required Opening Date' for a Potbelly Sandwich Works franchise?
Potbelly_Sandwich_Works Franchise · 2025 FDDAnswer from 2025 FDD Document
Subject to this Agreement's terms, we grant you a franchise (the "Franchise") to operate a Potbelly Shop (the "Shop") at the Site, and to use the Franchise System in its operation, for a ten (10) year term beginning on the earlier of the date the Shop opens for business ("Shop Opening Date") or three hundred sixty (360) days from the Effective Date of this Agreement (the "Term"). The Term is subject to earlier termination under Section 14. You agree to operate the Shop in compliance with this Agreement for the entire Term
Source: Item 22 — CONTRACTS (FDD page 79)
What This Means (2025 FDD)
According to Potbelly Sandwich Works's 2025 Franchise Disclosure Document, the 'Shop Opening Date' is defined as the earlier of two dates. The first is the actual date the Potbelly Sandwich Works shop opens for business. The second is 360 days from the effective date of the Franchise Agreement.
This means a franchisee has a maximum of 360 days from signing the agreement to get their Potbelly Sandwich Works location open. If the location isn't open within that timeframe, the 'Shop Opening Date' is automatically set to the 360th day, regardless of whether the store is actually operating.
This definition is important because the franchise term, which is ten years, begins on the 'Shop Opening Date'. Therefore, delays in opening can reduce the actual operating time under the franchise agreement. Franchisees should be aware of this deadline and plan accordingly to avoid losing potential operating time.