What entities are included in the consolidated financial statements of Potbelly Sandwich Works?
Potbelly_Sandwich_Works Franchise · 2025 FDDAnswer from 2025 FDD Document
The Company's consolidated financial statements include the accounts of Potbelly; its wholly-owned subsidiary, Potbelly Illinois, Inc. ("PII"); PII's wholly-owned subsidiaries, Potbelly Franchising, LLC and Potbelly Sandwich Works, LLC ("PSW"); seven of PSW's wholly-owned subsidiaries and PSW's six joint ventures, collectively, the "Company." All intercompany balances and transactions have been eliminated in consolidation. For our six consolidated joint ventures, "non-controlling interest" represents the non-controlling partner's share of the assets, liabilities and operations related to the joint venture investments. Potbelly has ownership interests ranging from 51-80% in these consolidated joint ventures.
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 consolidated financial statements include the accounts of Potbelly Corporation and its subsidiaries. Specifically, this includes Potbelly; its wholly-owned subsidiary, Potbelly Illinois, Inc. ("PII"); PII's wholly-owned subsidiaries, Potbelly Franchising, LLC and Potbelly Sandwich Works, LLC ("PSW"); seven of PSW's wholly-owned subsidiaries and PSW's six joint ventures.
All intercompany balances and transactions are eliminated during the consolidation process. For the six consolidated joint ventures, the "non-controlling interest" represents the non-controlling partner's share of the assets, liabilities, and operations related to the joint venture investments. Potbelly Sandwich Works has ownership interests ranging from 51% to 80% in these consolidated joint ventures.
This consolidation provides a comprehensive view of the financial position of Potbelly Sandwich Works, including all entities under its control. A prospective franchisee can gain a better understanding of the overall financial health and performance of the Potbelly Sandwich Works system by reviewing these consolidated statements. Understanding which entities are included in the consolidated statements helps a franchisee understand the scope of the financial information presented.