What is the effective date for Potbelly Sandwich Works franchise registration in California?
Potbelly_Sandwich_Works Franchise · 2025 FDDAnswer from 2025 FDD Document
The following are additional disclosures for the Franchise Disclosure Document of Potbelly Franchising, LLC required by various state franchise laws. Each provision of these additional disclosures will not apply unless, with respect to that provision, the jurisdictional requirements of the applicable state franchise registration and disclosure law are met independently without reference to these additional disclosures.
CALIFORNIA
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- THE CALIFORNIA FRANCHISE INVESTMENT LAW REQUIRES THAT A COPY OF ALL PROPOSED AGREEMENTS RELATING TO THE SALE OF THE FRANCHISE BE DELIVERED TOGETHER WITH THE DISCLOSURE DOCUMENT.
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- BEFORE THE FRANCHISOR CAN ASK YOU TO MATERIALLY MODIFY YOUR EXISTING FRANCHISE AGREEMENT, SECTION 31125 OF THE CALIFORNIA CORPORATIONS CODE REQUIRES THE FRANCHISOR TO FILE A MATERIAL MODIFICATION APPLICATION WITH THE DEPARTMENT THAT INCLUDES A DISCLOSURE DOCUMENT SHOWING THE EXISTING TERMS AND THE PROPOSED NEW TERMS OF YOUR FRANCHISE AGREEMENT. ONCE THE APPLICATION IS REGISTERED, THE FRANCHISOR MUST PROVIDE YOU WITH THAT DISCLOSURE DOCUMENT WITH AN EXPLANATION THAT THE CHANGES ARE VOLUNTARY.
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- OUR WEBSITE, www.potbelly.com, HAS NOT BEEN REVIEWED OR APPROVED BY THE CALIFORNIA DEPARTMENT OF FINANCIAL PROTECTION AND INNOVATION. ANY COMPLAINTS CONCERNING THE CONTENT OF THE WEBSITE MAY BE DIRECTED TO THE CALIFORNIA DEPARTMENT OF FINANCIAL PROTECTION AND INNOVATION AT www.dfpi.ca.gov.
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- Item 3 of the Franchise Disclosure Document is amended to provide that neither the franchisor, nor any person in Item 2 of the Franchise Disclosure Document, is subject to any currently effective order of any national securities association or national securities exchange, as defined in the Securities Exchange Act of 1934, 15 U.S.C.A. 78a et seq., suspending or expelling such person from membership in that association or exchange.
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- The following sentence is added to the "Remarks" column of the line-item titled "Interest" in Item 6 of the Franchise Disclosure Document: The highest interest rate allowed under California law is 10% annually.
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- The following sentence is added at the end of Item 15 of the Franchise Disclosure Document: We generally do not require a spouse to sign a personal guaranty if he or she has no ownership interest in the franchise.
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- The following paragraphs are added at the end of Item 17 of the Franchise Disclosure Document:
Source: Item 23 — RECEIPTS (FDD pages 79–355)
What This Means (2025 FDD)
The 2025 Franchise Disclosure Document (FDD) for Potbelly Sandwich Works includes addenda and riders that address specific state laws, including those in California. These riders are designed to ensure that the franchise agreements comply with local regulations. The documents indicate that certain provisions apply specifically to franchisees in California, such as those related to franchise investment laws and modifications to existing franchise agreements. However, the FDD does not explicitly state the effective date of the franchise registration in California.
While the FDD mentions requirements like delivering all proposed agreements with the disclosure document and filing material modification applications with the California Department of Financial Protection and Innovation, it does not provide a specific date for when Potbelly Sandwich Works' franchise registration became effective in California. The addenda primarily focus on amendments and additional disclosures required by California law.
Therefore, a prospective franchisee should directly contact Potbelly Sandwich Works or consult the California Department of Financial Protection and Innovation to obtain the precise effective date of the franchise registration. This information is crucial for understanding the legal framework under which the franchise operates in California and ensuring full compliance with state regulations.