Which exhibit contains the audited consolidated balance sheets for Potbelly Sandwich Works?
Potbelly_Sandwich_Works Franchise · 2025 FDDAnswer from 2025 FDD Document
Exhibit G-1 contains the audited consolidated balance sheets of Potbelly Corporation as of December 29, 2024, and December 31, 2023, and related consolidated statements of operations, statements of equity and statements of cash flows for the years ended December 29, 2024, December 31, 2023, and December 25, 2022. Potbelly Corporation absolutely and unconditionally guarantees to assume our duties and obligations under the Franchise Agreement should we become unable to perform our duties and obligations under the Franchise Agreement. Potbelly Corporation's Guarantee of Performance is attached as Exhibit G-2.
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 78)
What This Means (2025 FDD)
According to Potbelly Sandwich Works's 2025 Franchise Disclosure Document, the audited consolidated balance sheets of Potbelly Corporation as of December 29, 2024, and December 31, 2023, are located in Exhibit G-1. This exhibit also includes the related consolidated statements of operations, statements of equity, and statements of cash flows for the years ended December 29, 2024, December 31, 2023, and December 25, 2022.
It is standard practice for franchisors to include several years of audited financial statements in their FDDs. These statements provide prospective franchisees with an overview of the franchisor's financial health and performance. Reviewing these statements is a crucial step in assessing the financial stability of Potbelly Sandwich Works.
Additionally, the FDD mentions that Potbelly Corporation guarantees the obligations of Potbelly Sandwich Works under the Franchise Agreement. This guarantee, detailed in Exhibit G-2, means that Potbelly Corporation will assume the duties and obligations under the Franchise Agreement if Potbelly Sandwich Works is unable to perform them. This guarantee can provide an additional layer of security for franchisees.