What must occur for the Potbelly Sandwich Works Non-Traditional Location Addendum to take effect?
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"). |
Source: Item 22 — CONTRACTS (FDD page 79)
What This Means (2025 FDD)
According to Potbelly Sandwich Works's 2025 Franchise Disclosure Document, the Non-Traditional Location Addendum becomes effective on the "Effective Date," regardless of when the parties sign it. The "Effective Date" is specified as the day of a particular month and year, and the addendum takes effect only upon the full signatures of both parties, Potbelly Franchising, LLC, and the franchisee. This addendum modifies certain provisions of the standard Franchise Agreement to accommodate the unique aspects of operating a Potbelly Sandwich Shop within a Non-Traditional Location, such as a hospital, airport, or school.
This addendum is designed to recognize that the Potbelly Sandwich Shop will be located within a "Facility," which is a Non-Traditional Location. The term "Non-Traditional Location" is defined as any permanent or temporary food service facility that operates under the Potbelly Sandwich Works marks and Franchise System but does not feature unlimited and unrestricted access to the general public. These locations include hospitals, airports, schools, and other similar venues that generate customer flow independent of the surrounding area's general traffic.
For a prospective franchisee, this means that the standard Franchise Agreement is altered to account for the specific conditions of operating within a non-traditional venue. The addendum ensures that both Potbelly Sandwich Works and the franchisee agree to these modifications, with the effective date contingent on both parties fully signing the document. This arrangement allows Potbelly Sandwich Works to tailor the franchise terms to the unique circumstances of non-traditional locations, potentially impacting aspects such as site selection, operational requirements, and marketing strategies.