Can Potbelly Sandwich Works revoke a waiver it previously granted?
Potbelly_Sandwich_Works Franchise · 2025 FDDAnswer from 2025 FDD Document
If we do not receive the fully executed franchise agreement and payment of the required initial franchise fee due thereunder, we may revoke our offer to grant you a franchise to operate a Potbelly Shop at the proposed site and may revoke our acceptance of the proposed site.
(6) We have the right to accept or refuse to accept the terms (including, but not limited to, lease payments or purchase price) of any lease or purchase agreement proposed for a site (the "Real Estate Agreement") before you sign it. You must send us for review and comment, a copy of the proposed final form of Real Estate Agreement before signing it. We also may request, and you must send us, for review and comment, earlier drafts of the proposed Real Estate Agreement. You (or your Owner or Affiliate) may not sign the Real Estate Agreement unless and until we have reviewed and accepted its final form and notified you in writing that it may be signed. If you (or your Owner or Affiliate) sign the Real Estate Agreement before we send that notice, we may revoke our offer to grant you a franchise to operate a Potbelly Shop at the proposed site and may revoke our acceptance of the proposed site.
Source: Item 23 — RECEIPTS (FDD pages 79–355)
What This Means (2025 FDD)
According to the 2025 Potbelly Sandwich Works FDD, Potbelly Sandwich Works has the right to revoke its offer to grant a franchise under specific circumstances related to site selection and agreement execution. If a prospective franchisee signs a Real Estate Agreement before Potbelly Sandwich Works reviews and accepts its final form, Potbelly Sandwich Works may revoke its offer to grant the franchise and acceptance of the proposed site. Similarly, if the fully executed franchise agreement and required initial franchise fee payment are not received within a specified timeframe (not earlier than 7 days and not later than 21 days after delivery), Potbelly Sandwich Works may revoke the franchise offer and site acceptance.
This policy protects Potbelly Sandwich Works's interests by ensuring they maintain control over site selection and that franchisees adhere to the established agreement process. It also ensures that franchisees meet the financial obligations outlined in the franchise agreement within the stipulated timeframe. These stipulations are fairly typical in franchising, as franchisors need to maintain standards and protect their brand.
For a potential Potbelly Sandwich Works franchisee, this means it is crucial to follow the prescribed procedures for site selection and agreement execution meticulously. Signing a Real Estate Agreement prematurely or failing to meet the deadlines for returning the executed franchise agreement and initial fees could result in the revocation of the franchise offer. Franchisees should maintain open communication with Potbelly Sandwich Works during the site selection and agreement process to avoid any misunderstandings or potential issues that could jeopardize their franchise opportunity.