Where are disputes involving Potbelly Sandwich Works generally arbitrated?
Potbelly_Sandwich_Works Franchise · 2025 FDDAnswer from 2025 FDD Document
| PROVISION | SECTION IN FRANCHISE OR OTHER AGREEMENT | SUMMARY of 5 miles of any Potbelly Shop (whether franchised or affiliate or company-owned), whether in operation or under construction on the effective date of termination or expiration; or (c) any entity which grants franchises, licenses or other interests to others to operate any | |
|---|---|---|---|
| s. | Modification of the agreement | 17.J. of Franchise Agreement; 10.14 of SDAA | Competitive Business No modifications generally except by written agreement signed by both parties, but we may change Operations Manual and System Standards |
| t. | Integration/merger clause | 17.N. of Franchise Agreement; 10.14 of SDAA | Only the Franchise Agreement's and SDAA's terms are binding (subject to state law). Any representations or promises outside of the disclosure document and Franchise Agreement may not be enforceable |
| u. | Dispute resolution by arbitration or mediation | 17.F. of Franchise Agreement; 10.06 and of SDAA | We and you generally must arbitrate all disputes at location near our principal business address at the time the arbitration demand is filed (it currently is in Chicago, Illinois) |
| v. | Choice of forum | 17.H. of Franchise Agreement; 10.07 of SDAA | Subject to arbitration obligation, litigation generally must be in courts located closest to where we have our principal business address at the time the action is commenced (it currently is in Chicago, Illinois) (subject to applicable state law) |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER, AND DISPUTE RESOLUTION (FDD pages 58–65)
What This Means (2025 FDD)
According to Potbelly Sandwich Works's 2025 Franchise Disclosure Document, disputes are generally resolved through arbitration. The FDD states that both Potbelly Sandwich Works and the franchisee must arbitrate disputes. The location for arbitration is near Potbelly Sandwich Works's principal business address when the arbitration demand is filed. Currently, their principal business address is in Chicago, Illinois, meaning that arbitration would likely take place in or near Chicago.
This arbitration clause means that a franchisee may be required to travel to Chicago, Illinois to resolve disputes with Potbelly Sandwich Works. This could increase the cost of resolving a dispute due to travel and attorney fees.
It is important to note that this arbitration obligation is not the only means of dispute resolution. The FDD states that litigation generally must be in courts located closest to where Potbelly Sandwich Works has its principal business address at the time the action is commenced, which is currently Chicago, Illinois. This is subject to applicable state law.