Does Potbelly Sandwich Works have to approve a franchisee's request to use a new supplier?
Potbelly_Sandwich_Works Franchise · 2025 FDDAnswer from 2025 FDD Document
right to limit the suppliers with whom you may deal;
- (5) supply and supplier approval procedures and criteria for items and services you need to operate your Shop but that we allow you to obtain from sources other than us, our affiliates and/or other specified exclusive sources. If you want the Shop to use any product brand, ingredient, supply, or service we have not yet approved as meeting our minimum standards and specifications, or to buy any item or service from a supplier we have not yet approved or designated, you first must notify us and, at our request, submit samples and other information we require to determine whether the item, service, or supplier meets our standards and specifications. We may inspect the proposed supplier's facilities and charge you or the supplier a reasonable fee for the inspection and evaluation. We need not approve your request and do not intend to approve a request if we already have designated specific items, services and/or suppliers or otherwise have restricted the supply system. We also have the right to re-inspect any supplier's products, services, and facilities and to revoke our approval of any item, service, or supplier;
Source: Item 22 — CONTRACTS (FDD page 79)
What This Means (2025 FDD)
According to Potbelly Sandwich Works's 2025 Franchise Disclosure Document, franchisees must obtain approval from Potbelly Sandwich Works before using a new supplier for items and services needed to operate their shop, if those items are not already sourced from Potbelly Sandwich Works, its affiliates, or other specified exclusive sources.
To gain approval, franchisees must notify Potbelly Sandwich Works and submit samples and any other information requested to determine if the new item, service, or supplier meets the brand's standards and specifications. Potbelly Sandwich Works has the right to inspect the supplier's facilities and may charge the franchisee or the supplier a reasonable fee for the inspection and evaluation.
Potbelly Sandwich Works is not obligated to approve the franchisee's request, especially if specific items, services, and/or suppliers have already been designated or the supply system is otherwise restricted. Potbelly Sandwich Works also retains the right to re-inspect any supplier's products, services, and facilities and to revoke approval of any item, service, or supplier at any time. Franchisees are prohibited from using any unapproved products as replacements.