What is the 'Term' of the SDAA for a Potbelly Sandwich Works development?
Potbelly_Sandwich_Works Franchise · 2025 FDDAnswer from 2025 FDD Document
- 2.01 Term. Unless sooner terminated in accordance with Section 8, the term of this SDAA (the "Term") starts on the Effective Date and expires on the expiration date set forth in Exhibit A. You have no right to renew or extend your rights under this SDAA.
Source: Item 23 — RECEIPTS (FDD pages 79–355)
What This Means (2025 FDD)
According to Potbelly Sandwich Works' 2025 Franchise Disclosure Document, the term of the Shop Development and Area Agreement (SDAA) begins on the effective date and concludes on the expiration date specified in Exhibit A, unless terminated earlier according to Section 8 of the agreement. The document explicitly states that there is no right to renew or extend the rights granted under the SDAA.
This means that a developer's rights to develop Potbelly Sandwich Works shops in a specific area are limited to the period defined in the agreement. Unlike a standard franchise agreement, the SDAA does not offer an option to renew, which is a critical point for potential developers to consider. They must be prepared to develop the agreed-upon number of locations within the initial term, or risk losing their development rights.
Prospective developers should carefully review Exhibit A of the SDAA to understand the exact expiration date and Section 8 to understand the conditions under which the agreement can be terminated early. This information is crucial for planning and ensuring compliance with the development schedule. Understanding these terms is vital for making an informed decision about investing in a Potbelly Sandwich Works development opportunity.