Where can I find information about 'Insurance' requirements related to Potbelly Sandwich Works?
Potbelly_Sandwich_Works Franchise · 2025 FDDAnswer from 2025 FDD Document
Purchaser shall provide to Seller at the Closing one or more certificates (the "Insurance Certificate") evidencing the insurance specified in this Section 6.09 and naming Seller and each of its Affiliates, directors, agents, and employees (as may be specified by Seller) as additional insureds and, in the case of property insurance, such parties shall be named as their interest may appear. All Insurance Certificates shall expressly provide that no less than thirty (30) days' prior written notice shall be given to Seller in the event of material alteration to, or cancellation of, or non-renewal of the coverages evidenced by such Insurance Certificates.
Source: Item 23 — RECEIPTS (FDD pages 79–355)
What This Means (2025 FDD)
According to the 2025 Potbelly Sandwich Works FDD, Section 6.09 discusses insurance requirements. Specifically, the purchaser must provide the seller with an "Insurance Certificate" at closing, evidencing the required insurance coverage. This certificate must name the seller and its affiliates, directors, agents, and employees as additional insureds, as specified by the seller. For property insurance, these parties should be named as their interest may appear.
The Insurance Certificate must also stipulate that the seller receives at least thirty days' prior written notice in the event of any material alteration, cancellation, or non-renewal of the insurance coverages. This ensures that Potbelly Sandwich Works is informed of any changes to the franchisee's insurance policies that could affect their coverage.
This requirement is typical in franchising, as it protects the franchisor from potential liabilities arising from the franchisee's operations. Prospective franchisees should carefully review Section 6.09 and related sections in the FDD to understand the specific types and amounts of insurance required, as well as the process for providing the Insurance Certificate and maintaining coverage.