To what extent can Potbelly Sandwich Works regulate product prices?
Potbelly_Sandwich_Works Franchise · 2025 FDDAnswer from 2025 FDD Document
We may regulate your Product prices to the extent the law allows, including restricting your use of coupons and other Product price discounting practices. We also may require your participation in systemwide discount programs.
- (24) to the extent allowed by applicable law, the minimum, maximum, and other prices for the Shop's Products, including restrictions on your use of coupons and other Product price discounting practices.
This includes (without limitation) prescribing the maximum and/or minimum retail prices which you may charge customers for the products
and/or services offered by the Shop; recommending retail prices; advertising specific retail prices for some or all products or services sold at the Shop; to engage in marketing, promotional and related campaigns which you must participate in and which may directly or indirectly impact your retail prices; and, otherwise mandating, directly or indirectly, the maximum and/or minimum retail prices which the Shop may charge the public for the products and services it offers. We may engage in any such activity either periodically or throughout the Term. Further, we may engage in such activity only in certain geographic areas (cities, states, regions) and not others, or with regard to certain subsets of franchisees and not others. You acknowledge that the prices we prescribe or suggest may or may not optimize the revenues or profitability of the Shop and you irrevocably waive any and all claims arising from the establishment or suggestion of the Shop's retail prices;
- (23) to the extent allowed by applicable law, your participating as we require in discount programs, giveaways, brand initiatives and other promotions.
You acknowledge and agree that periodic discounts, giveaways, brand initiatives and other promotions are an integral part of the System.
Therefore, you agree to offer and participate in such discounts, giveaways, brand initiatives and other promotions at your sole cost and expense, in accordance with our specifications.
You further agree to honor the discounts, giveaways, brand initiatives and other promotions offered by other Potbelly Shop franchise owners under any such program we establish, as long as such compliance does not contravene any applicable law, rule or regulation;
Source: Item 16 — RESTRICTIONS ON WHAT THE FRANCHISEE MAY SELL (FDD page 57)
What This Means (2025 FDD)
According to Potbelly Sandwich Works's 2025 Franchise Disclosure Document, Potbelly Sandwich Works retains significant control over product pricing, to the extent allowed by law. Potbelly Sandwich Works may regulate product prices, including restricting the use of coupons and other discounting practices, and may require participation in system-wide discount programs.
Potbelly Sandwich Works can prescribe minimum, maximum, and other prices for the Shop's Products, including restrictions on the franchisee's use of coupons and other Product price discounting practices. This includes prescribing the maximum and/or minimum retail prices which franchisees may charge customers for the products and/or services offered by the Shop; recommending retail prices; advertising specific retail prices for some or all products or services sold at the Shop; engaging in marketing, promotional and related campaigns which franchisees must participate in and which may directly or indirectly impact retail prices; and, otherwise mandating, directly or indirectly, the maximum and/or minimum retail prices which the Shop may charge the public for the products and services it offers.
Potbelly Sandwich Works may engage in any such activity either periodically or throughout the term of the franchise agreement. Further, Potbelly Sandwich Works may engage in such activity only in certain geographic areas (cities, states, regions) and not others, or with regard to certain subsets of franchisees and not others. The franchisee acknowledges that the prices Potbelly Sandwich Works prescribes or suggests may or may not optimize the revenues or profitability of the Shop and the franchisee irrevocably waives any and all claims arising from the establishment or suggestion of the Shop's retail prices.
Franchisees are also required to participate in discount programs, giveaways, brand initiatives, and other promotions at their sole cost and expense, in accordance with Potbelly Sandwich Works's specifications. Franchisees must also honor the discounts, giveaways, brand initiatives and other promotions offered by other Potbelly Shop franchise owners under any such program Potbelly Sandwich Works establishes, as long as such compliance does not contravene any applicable law, rule or regulation.