Under what circumstances is the Rider to the Potbelly Sandwich Works Franchise Agreement required?
Potbelly_Sandwich_Works Franchise · 2025 FDDAnswer from 2025 FDD Document
RIDER TO THE POTBELLY FRANCHISING, LLC FRANCHISE AGREEMENT FOR USE IN CALIFORNIA, HAWAII, INDIANA, MICHIGAN, RHODE ISLAND, SOUTH DAKOTA, VIRGINIA AND WISCONSIN
West Madison Street, Suite 1000, , This Rider (the "Rider") is made and entered into as of the day of, 20 (the "Effective Date") (regardless of the dates of the parties' signatures) by and between POTBELLY FRANCHISING, LLC, an Illinois limited liability company with its principal business address at 500 Chicago, Illinois 60661 ("we," "us," or "our"), and whose principal business address is ("you" or "your"). part of the Franchise Agreement. 1. Background. Franchisor and Franchisee are parties to that certain Franchise Agreement that has been signed at the same time as the signing of this Rider (the "Franchise Agreement"). This Rider is Indiana, Michigan, Rhode Island, South Dakota, Virginia or Wisconsin: 2. No Waiver of Disclaimer of Reliance in Certain States. The following provision applies only to franchisees and franchises that are subject to the state franchise disclosure laws in California, Hawaii, 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. Effective Date stated in the Franchise Agreement. IN WITNESS WHEREOF, the parties have executed and delivered this Rider effective on the POTBELLY FRANCHISING, LLC, an Illinois limited liability company [Name of Franchisee] [Signature] [Signature] [Print Name] [Print Name] DATED: DATED:
THE FOLLOWING PAGES ARE STATE-SPECIFIC RIDERS TO THE SHOP DEVELOPMENT AREA AGREEMENT
RIDER TO THE POTBELLY FRANCHISING, LLC SHOP DEVELOPMENT AREA AGREEMENT FOR USE IN ILLINOIS
Source: Item 23 — RECEIPTS (FDD pages 79–355)
What This Means (2025 FDD)
According to Potbelly Sandwich Works's 2025 Franchise Disclosure Document, there are several specific instances where a rider to the franchise agreement is required. One such instance is for franchisees operating in California, Hawaii, Indiana, Michigan, Rhode Island, South Dakota, Virginia, or Wisconsin. In these states, a rider is added to ensure that no statement or acknowledgment signed by the franchisee waives claims under state franchise laws, including those related to fraud. This rider specifically prevents disclaimers of reliance on statements made by Potbelly Sandwich Works or its representatives.
Another instance where a rider is required is for franchisees in North Dakota. Additionally, if Potbelly Sandwich Works requires the franchisee to enter into a lease, a lease rider may be necessary as a condition of authorizing the franchisee to enter into that lease. This ensures that the lease contains terms and provisions that Potbelly Sandwich Works deems reasonably necessary.
Furthermore, Potbelly Sandwich Works may require a collateral assignment of the lease to secure the franchisee's obligations under the franchise agreement. These riders and addenda serve to protect both the franchisee and Potbelly Sandwich Works by clarifying rights, obligations, and legal requirements specific to certain states or situations. Prospective franchisees should carefully review all riders and addenda applicable to their specific circumstances to fully understand their contractual obligations and rights.