Was the financial performance representation for Potbelly Sandwich Works prepared with an audit?

According to Potbelly Sandwich Works's 2025 Franchise Disclosure Document, the financial performance representation was prepared without an audit. The FDD explicitly states that no certified public accountant has audited the figures presented or expressed an opinion on their contents or form. This means the financial data provided has not been independently verified for accuracy.

For a potential franchisee, this implies a higher degree of due diligence is necessary. Since the financial performance data hasn't been audited, it's crucial to independently verify the information through other means. This could involve consulting with financial advisors, speaking with existing franchisees to gather their experiences, and conducting thorough market research to assess the potential for the specific location being considered.

It is standard practice in the franchise industry for franchisors to provide financial performance representations in their FDDs, but the level of assurance on this data can vary. Some franchisors may choose to have their financial performance representations audited, while others do not. The absence of an audit does not necessarily mean the data is inaccurate, but it does place a greater burden on the franchisee to validate the information.

Prospective franchisees should carefully review the Item 19 financial performance representation, understand the basis for the data presented (e.g., average sales, expense ratios), and consider the factors that could influence their individual results. Given that the Potbelly Sandwich Works's financial performance representation was not audited, engaging professional advisors to assist in the evaluation process is particularly important.