What constitutes 'Confidential Information' for a Potbelly Sandwich Works franchise?
Potbelly_Sandwich_Works Franchise · 2025 FDDAnswer from 2025 FDD Document
6. CONFIDENTIAL INFORMATION.
We and our affiliates possess (and will continue to develop and acquire) certain confidential information, some of which constitutes trade secrets under applicable law (the "Confidential Information"), relating to developing and operating Potbelly Shops, including (without limitation):
- (1) site selection criteria;
- (2) specifications for Potbelly Trade Secret Products and Potbelly Branded Products;
Source: Item 22 — CONTRACTS (FDD page 79)
What This Means (2025 FDD)
According to Potbelly Sandwich Works's 2025 Franchise Disclosure Document, Confidential Information encompasses a wide array of proprietary details crucial to the operation and success of a Potbelly Sandwich Works franchise. This includes, but is not limited to, the criteria used for selecting shop locations, the specific recipes and standards for Potbelly Trade Secret Products and Potbelly Branded Products, and the comprehensive training and operational materials provided to franchisees. These elements are fundamental to maintaining the brand's consistency and quality across all locations.
Furthermore, Confidential Information extends to the methods, formats, standards, and systems employed in developing and running Potbelly Shops, as well as the marketing and advertising programs designed to attract and retain customers. It also covers the identities of suppliers for essential operating assets, trade secret products, branded products, and other necessary services. The proprietary computer software or similar technology used within the franchise system, including digital passwords and source code, is also considered confidential. This ensures that franchisees operate using approved and secure systems.
In addition, the operating results and financial performance data of Potbelly Shops, excluding the franchisee's own shop, are classified as Confidential Information. This prevents franchisees from gaining insights into the broader network's performance that could be used unfairly. Customer and member solicitation programs, along with any data generated from these programs, including customer contact information and transaction details, are also protected. Finally, future business plans related to Potbelly Shops and the franchise opportunity, including expansion and development strategies, are included to maintain the strategic advantage of Potbelly Sandwich Works.