Is Potbelly Sandwich Works' approval required for a franchisee to transfer their franchise?

According to Potbelly Sandwich Works' 2025 Franchise Disclosure Document, the franchisor's approval is required for a franchisee to transfer their franchise. The FDD states that termination by the franchisor can occur due to "unapproved transfers or surrenders of control". This indicates that any transfer of the franchise or its control without the explicit consent of Potbelly Sandwich Works can be grounds for termination of the franchise agreement.

This provision is typical in franchising, as franchisors want to maintain control over who operates their branded locations to protect brand standards and consistency. Requiring approval allows Potbelly Sandwich Works to vet potential new operators and ensure they meet the company's qualifications and standards.

For a prospective Potbelly Sandwich Works franchisee, this means that if they wish to sell their franchise or transfer control to another party, they must first obtain approval from Potbelly Sandwich Works. Failure to do so could result in the termination of their franchise agreement. It is important to understand the specific conditions and requirements for transfer as outlined in the Franchise Agreement to ensure compliance and avoid potential conflicts with the franchisor.