What information is contained in Exhibit B of the Potbelly Sandwich Works SDAA?
Potbelly_Sandwich_Works Franchise · 2025 FDDAnswer from 2025 FDD Document
EXHIBIT B – DEVELOPMENT SCHEDULE
You agree to open and operate in the Development Area, in accordance with and pursuant to franchise agreements you or your Affiliates will sign, the incremental and total cumulative number of Potbelly Shops set forth in Exhibit B by the corresponding dates and timelines set forth therein (collectively, Exhibit B is referred to as the "Development Schedule").
In addition to our other rights and remedies under this SDAA and applicable law, we may delay your development of additional Potbelly Shops within the Area for the time period we deem best if we believe in our sole judgment, that you (or your Affiliate) are not yet operationally, managerially, or otherwise prepared, due to the particular amount of time that has elapsed since you (or your Affiliate) developed and opened your most recent Potbelly Shop, to develop, open and/or operate the additional Potbelly Shops in full compliance with our standards and specifications.
We may delay additional development for the time period we deem best as long as the delay will not in our reasonable opinion cause you to breach your development obligations under the Development Schedule (unless we are willing to extend the Development Schedule proportionately to account for the delay).
Source: Item 23 — RECEIPTS (FDD pages 79–355)
What This Means (2025 FDD)
According to Potbelly Sandwich Works' 2025 Franchise Disclosure Document, Exhibit B of the Shop Development Area Agreement (SDAA) contains the Development Schedule. The Development Schedule outlines the incremental and total cumulative number of Potbelly Shops the developer agrees to open and operate within the Development Area, along with the corresponding dates and timelines for achieving these milestones.
This schedule is a critical component of the SDAA, as it sets forth the developer's obligations to fully develop the market potential for Potbelly Shops within the designated area. Potbelly Sandwich Works may delay the developer's ability to develop additional Potbelly Shops if they believe the developer is not operationally, managerially, or otherwise prepared to develop, open, and/or operate the additional Potbelly Shops in full compliance with their standards and specifications.
However, Potbelly Sandwich Works states that they may only delay additional development for the time period they deem best as long as the delay will not, in their reasonable opinion, cause the developer to breach their development obligations under the Development Schedule, unless they are willing to extend the Development Schedule proportionately to account for the delay. Therefore, prospective developers should carefully review Exhibit B to understand the specific development milestones and timelines they will be held to, as failure to meet these obligations could have consequences under the SDAA.