factual

What does the Rider to the Potbelly Sandwich Works Franchise Agreement supersede?

Potbelly_Sandwich_Works Franchise · 2025 FDD

Answer from 2025 FDD Document

No statement, questionnaire or acknowledgment signed or agreed to by a franchisee in connection with the commencement of the franchise relationship shall have the effect of (i) waiving any claims under any applicable state franchise law, including fraud in the inducement, or (ii) disclaiming reliance on any statement made by any franchisor, franchise seller, or any other person acting on behalf of the franchisor. This provision supersedes any other term of any document executed in connection with the franchise.

Source: Item 23 — RECEIPTS (FDD pages 79–355)

What This Means (2025 FDD)

According to Potbelly Sandwich Works' 2025 Franchise Disclosure Document, the Rider to the Franchise Agreement addresses the waiver of disclaimers of reliance in certain states. Specifically, for franchisees and franchises subject to state franchise disclosure laws in California, Hawaii, Indiana, Michigan, Rhode Island, South Dakota, Virginia, and Wisconsin, the rider ensures that no statement, questionnaire, or acknowledgment signed by a franchisee can waive claims under state franchise law, including fraud in the inducement, or disclaim reliance on statements made by Potbelly Sandwich Works or its representatives.

This provision in the Rider explicitly supersedes any other conflicting term in any document executed in connection with the franchise agreement. This means that if any other agreement or document related to the franchise contains language that contradicts the protections against waiving claims or disclaiming reliance, the Rider's provision will take precedence.

For a prospective Potbelly Sandwich Works franchisee in the specified states, this Rider offers significant protection. It prevents the franchisee from inadvertently giving up their rights to pursue legal claims related to the franchise agreement based on statements made by the franchisor. This ensures that franchisees can rely on the information provided by Potbelly Sandwich Works during the franchise sales process and are not barred from seeking legal recourse if that information proves to be false or misleading. This type of clause is not uncommon in franchise agreements, particularly in states with strong franchise protection laws, as it aims to balance the relationship between franchisor and franchisee.

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.