Where will the arbitration proceedings be conducted for Potbelly Sandwich Works disputes?
Potbelly_Sandwich_Works Franchise · 2025 FDDAnswer from 2025 FDD Document
You and we agree that arbitration will be conducted on an individual basis, and not on a joint, collective, or class-wide basis, and that an arbitration proceeding between us and our affiliates, and our and their respective owners, shareholders, members, partners, officers, directors, managers, agents and/or employees, and you (and/or your owners, guarantors, affiliates and/or employees) may not be consolidated or joined with any other arbitration proceeding between us and any other person. Despite the foregoing or anything to the contrary contained in this Subsection 17.F. or Subsection 17.A., if any court or arbitrator determines that all or any part of the preceding sentence is unenforceable with respect to a dispute that otherwise would be subject to arbitration under this Subsection, then all parties agree that this arbitration clause will not apply to that dispute and the dispute will be resolved in a judicial proceeding in a court permitted under Subsection 17.H. of this Agreement and in accordance with this Section 17 (excluding this Subsection F.).
Despite your and our agreement to arbitrate, each has the right to seek temporary restraining orders and temporary or preliminary injunctive relief from a court of competent jurisdiction, provided, however, that each must contemporaneously submit its dispute for arbitration on the merits as provided in this Subsection.
This Subsection's provisions are intended to benefit and bind certain third-party nonsignatories (i.e., our and our affiliates' respective owners, officers, directors, agents and/or employees and your owners, guarantors, affiliates and/or employees). This Subsection continues in full force and effect after and notwithstanding this Agreement's expiration or termination.
Source: Item 22 — CONTRACTS (FDD page 79)
What This Means (2025 FDD)
According to Potbelly Sandwich Works' 2025 Franchise Disclosure Document, arbitration will be conducted on an individual basis, not on a joint, collective, or class-wide basis. An arbitration proceeding between Potbelly Sandwich Works and its affiliates, owners, shareholders, members, partners, officers, directors, managers, agents, and/or employees, and the franchisee (and/or their owners, guarantors, affiliates and/or employees) may not be consolidated or joined with any other arbitration proceeding between Potbelly Sandwich Works and any other person.
However, if any court or arbitrator determines that any part of the preceding sentence is unenforceable with respect to a dispute that would otherwise be subject to arbitration, then the arbitration clause will not apply to that dispute. In this case, the dispute will be resolved in a judicial proceeding in a court permitted under Subsection 17.H. of the Franchise Agreement and in accordance with Section 17 of the agreement (excluding Subsection F.).
Despite the agreement to arbitrate, both Potbelly Sandwich Works and the franchisee have the right to seek temporary restraining orders and temporary or preliminary injunctive relief from a court of competent jurisdiction. However, they must contemporaneously submit their dispute for arbitration on the merits. The provisions regarding arbitration are intended to benefit and bind certain third-party nonsignatories, including Potbelly Sandwich Works' and its affiliates' respective owners, officers, directors, agents and/or employees, as well as the franchisee's owners, guarantors, affiliates and/or employees. These provisions remain in effect even after the expiration or termination of the Franchise Agreement.