How is 'Control' defined in the Potbelly Sandwich Works agreement?
Potbelly_Sandwich_Works Franchise · 2025 FDDAnswer from 2025 FDD Document
The term "control" means the possession, directly or indirectly, of the power to direct or cause the direction of the management and policies of an entity, whether through ownership of voting securities, by contract or otherwise.
Source: Item 23 — RECEIPTS (FDD pages 79–355)
What This Means (2025 FDD)
According to Potbelly Sandwich Works' 2025 Franchise Disclosure Document, the term 'control' is specifically defined within the context of the agreement. It means possessing the power to direct or influence the management and policies of an entity. This influence can be exerted directly or indirectly.
This control can be achieved through various means, including ownership of voting securities. It also includes control established by contractual agreements. The definition is broad, encompassing any method by which an individual or entity can dictate the direction of another entity's management and policies.
For a prospective Potbelly Sandwich Works franchisee, this definition is important because it clarifies the scope of 'control' when determining affiliations, competitive businesses, or ownership structures. It ensures that Potbelly Sandwich Works maintains standards and protects its brand integrity by understanding who has the power to make key decisions within a franchisee's organization.