In the event of a dispute with Potbelly Sandwich Works, where is the arbitration location generally?
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) |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER, AND DISPUTE RESOLUTION (FDD pages 58–65)
What This Means (2025 FDD)
According to Potbelly Sandwich Works' 2025 Franchise Disclosure Document, disputes between the franchisee and franchisor will generally be resolved through arbitration. The arbitration location is to be near Potbelly Sandwich Works' principal business address at the time the arbitration demand is filed. Currently, their principal business address is in Chicago, Illinois.
This means that a franchisee, regardless of where their Potbelly Sandwich Works location is, may be required to travel to Chicago, Illinois to resolve disputes through arbitration. This could involve significant travel costs and inconvenience for franchisees located far from Chicago.
It is important for prospective franchisees to consider this when evaluating the franchise opportunity, as it could add to the overall cost and complexity of resolving any potential disputes with Potbelly Sandwich Works. Franchisees should also consult with legal counsel to fully understand the implications of the arbitration clause and the potential costs associated with arbitrating in Chicago.