What is the significance of the 'Effective Date' in the Potbelly Sandwich Works Non-Traditional Location Addendum?
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 |
Source: Item 22 — CONTRACTS (FDD page 79)
What This Means (2025 FDD)
According to Potbelly Sandwich Works's 2025 Franchise Disclosure Document, the Effective Date in the Non-Traditional Location Addendum marks the point at which the addendum becomes active, regardless of when the parties actually sign the document. The addendum is made and entered into as of that date, pending full signatures from both Potbelly Franchising, LLC and the franchisee.
For a prospective Potbelly Sandwich Works franchisee, the Effective Date is important because it can trigger certain obligations and deadlines outlined in the franchise agreement. For instance, if a location for the Potbelly Shop hasn't been identified by this date, the franchisee will need to find one according to the terms described in the agreement.
Furthermore, the franchise term officially commences either when the shop opens or 360 days from the Effective Date, whichever comes first. This means that even if the shop opening is delayed, the franchise term begins accruing after the 360-day mark from the Effective Date. This date is also used to identify managing owners and operators.