Does the agreement state that Potbelly Sandwich Works franchisees must maintain System Standards?
Potbelly_Sandwich_Works Franchise · 2025 FDDAnswer from 2025 FDD Document
es we require and authorize (the "Franchise System").
- (4) As a Potbelly Shop franchisee, you must comply with this Agreement and all mandatory standards, specifications, operating procedures, and rules (collectively, "System Standards") that we periodically prescribe for Potbelly Shops.
- (5) You have applied for a franchise to operate a Potbelly Shop.
B. ACKNOWLEDGMENTS.
You acknowledge:
- (1) That you have independently investigated the Potbelly Shop franchise opportunity and recognize that, like any other business, the nature of a Potbelly Shop will evolve and change over time.
- (2) That an investment in a Potbelly Shop involves business risks that could result in the loss of a significant portion or all of your investment.
- (3) That the business abilities and efforts of your owners and other principals, management, and staff are vital to your success.
- (4) That attracting and retaining customers for your Potbelly Shop require you to make consistent marketing and promotional efforts, to sell high quality Products, to provide a high level of customer service, and to adhere strictly to our System Standards. You are committed to maintaining System Standards.
Source: Item 22 — CONTRACTS (FDD page 79)
What This Means (2025 FDD)
According to Potbelly Sandwich Works' 2025 Franchise Disclosure Document, franchisees are required to comply with all System Standards. The agreement emphasizes that maintaining these standards is crucial for preserving the goodwill associated with the Potbelly Sandwich Works brand and all its locations. Franchisees must operate and maintain their shops in accordance with the System Standards, which are subject to periodic updates and modifications by Potbelly Sandwich Works. This obligation applies even if a franchisee believes a particular standard is not in the best interest of their individual shop or the franchise system as a whole.
Potbelly Sandwich Works retains the right to establish and modify these System Standards, while the franchisee is responsible for the shop's management, operation, and the implementation and upkeep of these standards within their location. These standards can regulate various aspects of the business, ensuring consistency across all Potbelly Sandwich Works locations.
Furthermore, as a Potbelly Shop franchisee, compliance with the Franchise Agreement and all mandatory System Standards is required. These standards encompass specifications, operating procedures, and rules prescribed by Potbelly Sandwich Works. Additionally, franchisees acknowledge that attracting and retaining customers requires strict adherence to System Standards, along with consistent marketing efforts, high-quality products, and excellent customer service.