factual

What is the purpose of the Potbelly Sandwich Works Non-Traditional Location Addendum?

Potbelly_Sandwich_Works Franchise · 2025 FDD

Answer 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 to the Franchise Agreement is designed to modify specific provisions of the standard agreement to accommodate Potbelly Sandwich Works shops located in non-traditional venues. These locations, as defined in the addendum, are food service facilities operating under the Potbelly Sandwich Works brand that do not have unrestricted access to the general public. Examples of such locations include hospitals, airports, schools, and sports arenas.

The addendum acknowledges that Potbelly Sandwich Works and the franchisee are signing the addendum to recognize that the Potbelly Sandwich Shop will be located within a specific Facility, which is considered a Non-Traditional Location. This addendum addresses requests made by the franchisee due to the unique nature of operating within such a location.

Furthermore, the addendum modifies the standard Franchise Agreement to account for the specific circumstances of non-traditional locations. For instance, it may alter the site selection process or address the scope of the franchisee's operational rights within the non-traditional venue. It also defines 'Non-Traditional Venues' as sites generating customer flow independent from general traffic, such as amusement parks or casinos.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.