What representations must franchisees make to Potbelly Sandwich Works?
Potbelly_Sandwich_Works Franchise · 2025 FDDAnswer from 2025 FDD Document
- 1.03 Your Representations.
You and your Owners, if applicable, represent and warrant to us that: (a) neither you nor any of your Owners have made any untrue statement of any material fact or have omitted to state any material fact in obtaining the rights granted hereunder; (b) neither you nor any of your Owners have any direct or indirect legal or beneficial interest in any business that may be deemed a Competitive Business, except as otherwise fully and accurately disclosed in your franchise application submitted to us; and (c) the execution and performance of this SDAA will not violate any other agreement to which you or any of your Owners may be bound.
Source: Item 23 — RECEIPTS (FDD pages 79–355)
What This Means (2025 FDD)
According to Potbelly Sandwich Works's 2025 Franchise Disclosure Document, franchisees must make certain representations to the company. Specifically, franchisees and their owners must represent and warrant that they have not made any untrue statements of material fact or omitted any material facts when obtaining franchise rights. They also must disclose any direct or indirect legal or beneficial interest in any business that could be deemed a Competitive Business, unless it has been fully and accurately disclosed in the franchise application. Finally, franchisees must represent that executing and performing the SDAA (Store Development Agreement Addendum) will not violate any other agreement they or their owners are bound by. These representations are critical for Potbelly Sandwich Works to ensure the integrity of its franchise system and protect its brand.
These representations are designed to protect Potbelly Sandwich Works from potential misrepresentations or conflicts of interest. By requiring franchisees to disclose any competitive business interests, Potbelly Sandwich Works aims to prevent franchisees from using confidential information or resources to benefit a competing business. The representation regarding compliance with other agreements ensures that franchisees are not entering into the franchise agreement in violation of existing obligations, which could create legal complications for both the franchisee and Potbelly Sandwich Works.
Prospective franchisees should carefully review these representations and ensure they can truthfully make them. Failure to do so could result in legal action or termination of the franchise agreement. It is advisable for potential franchisees to consult with an attorney to fully understand the implications of these representations and to ensure they are in compliance with all applicable laws and agreements. This level of transparency is typical in franchising, as franchisors need to protect their brand and system from potential conflicts or misrepresentations by franchisees.