What triggers Potbelly Sandwich Works' right to undertake steps related to the lease?
Potbelly_Sandwich_Works Franchise · 2025 FDDAnswer from 2025 FDD Document
If Potbelly receives notice of a default by Franchisee under the Lease or if Potbelly notifies Landlord of the expiration or termination of the Franchise Agreement, Potbelly shall have the right and option, upon written notice to Landlord, to undertake the steps set forth in this Section herein, provided that Potbelly must exercise such right by giving written notice to Landlord within sixty (60) days after the earlier to occur of (a) Potbelly's receipt of a default notice from Landlord or (b) Potbelly's notification to Landlord that the Franchise Agreement has been terminated.
Source: Item 23 — RECEIPTS (FDD pages 79–355)
What This Means (2025 FDD)
According to Potbelly Sandwich Works' 2025 Franchise Disclosure Document, Potbelly has the right to undertake certain actions related to the lease under specific conditions. Potbelly Sandwich Works can act if they receive notice of a default by the franchisee under the lease. Alternatively, Potbelly Sandwich Works can act if they notify the landlord of the expiration or termination of the Franchise Agreement.
In either of these scenarios, Potbelly Sandwich Works has the option, with written notice to the landlord, to take certain steps. However, Potbelly Sandwich Works must exercise this right within 60 days of whichever event occurs first: either receiving a default notice from the landlord or notifying the landlord that the Franchise Agreement has been terminated.
If Potbelly Sandwich Works chooses to act, they may perform the obligations of the lease on behalf of the franchisee for up to six months, even if the franchisee has been removed or evicted. Potbelly Sandwich Works can also assume the lease entirely for the remainder of its term, including any renewal options, within or at the end of that six-month period. If Potbelly Sandwich Works assumes the lease, they must cure any existing defaults to bring the lease current, and a formal agreement documenting the assumption will be created between Potbelly Sandwich Works and the landlord.