Does Potbelly Sandwich Works conduct site selection activities for franchisees?
Potbelly_Sandwich_Works Franchise · 2025 FDDAnswer from 2025 FDD Document
Before you begin operating the Shop, we will:
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- Give you our site selection criteria for the Shop, covering demographic characteristics; traffic patterns; parking; character of neighborhood; competition from, proximity to, and nature of nearby businesses; other commercial characteristics; and size, appearance, and other physical characteristics. We must accept the Shop's proposed site in writing before you may sign any purchase agreement, lease, sublease, or other occupancy document for the site. We will accept or reject your proposed site within 30 days after receiving the completed site report and other materials we request. While we may visit your area to see your proposed site(s), but we will not conduct site selection activities for you. We will not unreasonably withhold acceptance of a site meeting our criteria. If we sign the Franchise Agreement and you have not yet located the Shop's site, you must secure a suitable site within 180 days after signing the Franchise Agreement. We may terminate the Franchise Agreement if you do not find a suitable site within the required timeframe. (Franchise Agreement – Sections 2.A and 2.B)
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- Under the SDAA, designate a specific number of Shops you may develop and open at acceptable locations within your development area. If we accept a proposed site, you must within the time period we specify sign a separate franchise agreement (and related documents) for that Potbelly Shop (on our then-current forms) and pay us the remaining portion of the initial franchise fee due. (This applies for Shops you commit to develop under the SDAA after the 1st Shop, as you will sign the Franchise Agreement for the 1st Shop when you sign the SDAA). If you fail to do so, or cannot obtain lawful possession of the proposed site, we may withdraw our acceptance of the proposed site. If you do not find acceptable sites and therefore do not comply with the development schedule under the SDAA, we may terminate the SDAA (SDAA – Section 8.A). The development fee is not
refundable. (SDAA Section, 2, 4 and 6) We will accept the proposed locations of your additional Shops only if they meet our then-current standards for Shop sites.
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING (FDD pages 37–49)
What This Means (2025 FDD)
According to Potbelly Sandwich Works's 2025 Franchise Disclosure Document, the company does not conduct site selection activities for franchisees. However, Potbelly Sandwich Works does provide franchisees with site selection criteria covering demographic characteristics, traffic patterns, parking, the character of the neighborhood, competition, proximity to nearby businesses, and the size and appearance of potential sites.
Before a franchisee can sign any occupancy agreement, Potbelly Sandwich Works must provide written acceptance of the proposed site. Potbelly Sandwich Works will either accept or reject the proposed site within 30 days of receiving a completed site report and other requested materials. While Potbelly Sandwich Works may visit the proposed site, they will not conduct site selection activities for the franchisee.
If a franchisee signs the Franchise Agreement before securing a site, they have 180 days to find a suitable location. Failure to do so may result in the termination of the Franchise Agreement. For franchisees with a SDAA (Shop Development Area Agreement), Potbelly Sandwich Works will only accept additional shop locations that meet their current standards for shop sites.
This means that while Potbelly Sandwich Works offers guidance and final approval, the responsibility of finding a suitable location ultimately falls on the franchisee. Franchisees should carefully review the site selection criteria and diligently search for a location that meets Potbelly Sandwich Works's standards to avoid potential delays or termination of their agreement.