What is the document attached as Exhibit C in the Potbelly Sandwich Works FDD?
Potbelly_Sandwich_Works Franchise · 2025 FDDAnswer from 2025 FDD Document
We also grant multi-unit development rights to qualified franchisees, who then may develop multiple Potbelly Shops within a defined area over a specific time period or according to a pre-determined development schedule ("Developer"). These franchisees may open and operate Potbelly Shops directly or through approved controlled affiliates. Our standard form of Shop Development Area Agreement is attached as Exhibit C (the "SDAA"). The form of SDAA may differ from the form included in this disclosure document if you are signing an SDAA when you are purchasing existing company-owned Potbelly Shops. Franchisees signing our SDAA must sign our then-current form of Franchise Agreement for each additional Potbelly Shop they develop. That form may differ from the form of Franchise Agreement included in this disclosure document.
Source: Item 1 — THE FRANCHISOR AND ANY PARENTS, PREDECESSORS, AND AFFILIATES (FDD pages 9–11)
What This Means (2025 FDD)
According to Potbelly Sandwich Works's 2025 Franchise Disclosure Document, Exhibit C is the standard form of Shop Development Area Agreement (SDAA). This agreement is used when Potbelly Sandwich Works grants multi-unit development rights to qualified franchisees, allowing them to develop multiple Potbelly Shops within a specific area over a defined period or according to a pre-determined schedule. These franchisees, known as Developers, have the option to operate the Potbelly Shops directly or through approved controlled affiliates.
It's important to note that the form of the SDAA included in the disclosure document may not be the exact form a franchisee will sign if they are purchasing existing company-owned Potbelly Shops. Furthermore, franchisees who sign the SDAA must also sign Potbelly Sandwich Works's then-current form of Franchise Agreement for each additional Potbelly Shop they develop. This form may also differ from the Franchise Agreement included in the disclosure document.
In essence, the Shop Development Area Agreement outlines the terms and conditions under which a franchisee can develop multiple Potbelly Sandwich Works locations within a specified area. This agreement is a critical component for franchisees looking to expand their presence and develop a network of Potbelly Shops.