In the Non-Traditional Location Addendum for Potbelly Sandwich Works, what does the term 'Addendum' refer to?
Potbelly_Sandwich_Works Franchise · 2025 FDDAnswer from 2025 FDD Document
| THIS NON-TRADITIONAL LOCATION ADDENDUM TO FRANCHISE AGREEMENT | |
|---|---|
| (this "Addendum") is made and entered into as of the day of | |
| , 20 | |
| , (the "Effective | |
| Date") (regardless of the dates of, but only upon, the parties' full signatures) by and between POTBELLY | |
| FRANCHISING, LLC, an Illinois limited liability company with its principal business address at 500 | |
| West Madison Street, Suite 1000, Chicago, Illinois 60661 ("we", "us" or "our") and | |
| , a(n) | |
| , whose principal business address is | |
| ("you" or "your"). | |
| 1. | Preambles and Acknowledgements. Simultaneously with signing this Addendum, we and |
| you are signing a Franchise Agreement (the "Franchise Agreement") to govern your development and | |
| operation of a Potbelly Sandwich Shop (defined below) at the Site. All initial capitalized terms used but not | |
| defined in this Addendum have the meanings given to these terms in the Franchise Agreement. We and you | |
| are signing this Addendum to modify certain provisions of the Franchise Agreement to recognize that the | |
| Potbelly Sandwich Shop will be located within the | |
| (for purposes of this Addendum and in the Franchise Agreement, the "Facility"), which is a Non-Traditional | |
| Location (defined below), and to accommodate certain requests you have made as a result of that location. | |
| "Non-Traditional Location," in this Addendum and in the Franchise Agreement, means any permanent or | |
| temporary food service facility that operates (1) under one or more of the Marks and all or part of the | |
| Franchise System, and (2) at locations that do not feature unlimited and unrestricted access to the general | |
| public. Non-Traditional Locations include, but are not limited to: hospitals or medical centers, airports, | |
| public or private schools, universities or college campuses, airport terminals, train or bus stations, | |
| convention centers, exhibition halls, amusement parks, fairgrounds, sports arenas, military bases, state or | |
| national parks, hotels, lodges, country clubs, social clubs, resorts, casinos, theaters, food trucks, or any other | |
| similar site or venue that generates customer flow that is independent from the general customer traffic flow | |
| of the surrounding area (collectively, "Non-Traditional Venues"). | |
| 2. | Other Business. Subsection 1.C(6) of the Franchise Agreement is deleted in its entirety. |
| 3. | Grant of Franchise. Section 1.D of the Franchise Agreement is deleted in its entirety and |
| replaced with the following: | |
| D. | GRANT OF FRANCHISE. |
| You have applied for a non-traditional franchise to operate a Potbelly Shop at | |
| (the "Site"). 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 Effective Date (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 unless this Agreement is properly | |
| terminated under Section 14. You may use the Site during the Term only for the Shop. You agree | |
| at all times faithfully, honestly, and diligently to perform your obligations under this Agreement | |
| and to use best efforts to promote the Shop. You may not engage in any delivery or catering | |
| activities away from the Site, or take customer orders "on-line" (i.e., through the System Website |
Source: Item 22 — CONTRACTS (FDD page 79)
What This Means (2025 FDD)
According to Potbelly Sandwich Works's 2025 Franchise Disclosure Document, the 'Addendum' in the context of a Non-Traditional Location refers to the 'NON-TRADITIONAL LOCATION ADDENDUM TO FRANCHISE AGREEMENT.' This addendum is an agreement made between Potbelly Franchising, LLC, and the franchisee to modify specific provisions of the standard Franchise Agreement.
The purpose of this Addendum is to acknowledge that the Potbelly Sandwich Shop will operate within a 'Facility,' which is considered a Non-Traditional Location. Non-Traditional Locations are defined as food service facilities that operate under the Potbelly Sandwich Works brand but do not have unrestricted access to the general public; examples include hospitals, airports, and college campuses. The Addendum accommodates specific requests made by the franchisee due to the unique characteristics of operating within such a location.
Several sections of the standard Franchise Agreement are modified or deleted entirely by this Addendum to account for the Non-Traditional Location. For instance, the section on 'Other Business' (Subsection 1.C(6)) is deleted, and the 'Grant of Franchise' (Section 1.D) and 'Site Selection' (Section 2.A) sections are replaced with new terms specific to the non-traditional franchise. Additionally, the franchisee's delivery and catering area is limited to the Facility, and this area is deemed exclusive only within that Facility.