factual

What form must the transferee complete for Potbelly Sandwich Works?

Potbelly_Sandwich_Works Franchise · 2025 FDD

Answer from 2025 FDD Document

urrently with the proposed transfer's effective date:

  • (1) the transferee has the necessary business experience, aptitude, and financial resources to operate the Shop, completes our then-current form of franchise application, and otherwise is qualified under our then-existing standards for the approval of new franchisees or of existing franchisees interested in acquiring additional franchises (including the transferee and its affiliates are in substantial operational compliance, at the time of the application, under all other franchise agreements for Potbelly Shops to which they then are parties with us);

  • (2) you have paid all Royalties, Brand Fund contributions, and other amounts owed to us, our affiliates, and third-party vendors; have submitted all required reports and statements; and have not violated any material provision of this Agreement or any other agreement with us during both the sixty (60) day period before you requested our consent to the transfer and the period between your request and the transfer's proposed effective date;

  • (3) neither the transferee nor its owners or affiliates have an ownership interest (direct or indirect) in or perform services for a Competitive Business, wherever located or operating;

  • (4) the transferee's managing owner (or operator, as applicable) and general manager (if different from your Managing Owner or Operator, as applicable), satisfactorily complete required training within the timeframe we specify;

  • (5) the transferee has the right to occupy the Shop for the expected franchise term (whether by Lease assignment or sublet);

  • (6) any applicable agency or host or authority with jurisdiction over the Shop (such as an airport or an educational institution, if any) approves the transfer of this Agreement to the transferee;

Source: Item 22 — CONTRACTS (FDD page 79)

What This Means (2025 FDD)

According to Potbelly Sandwich Works's 2025 Franchise Disclosure Document, a transferee must complete the then-current form of franchise application. The transferee must also meet specific qualifications, including having the necessary business experience, aptitude, and financial resources to operate the Potbelly Sandwich Works shop.

In addition to completing the application, the transferee (and its affiliates) must be in substantial operational compliance under all other franchise agreements with Potbelly Sandwich Works at the time of application. The managing owner or operator and general manager (if different) must also satisfactorily complete required training within the timeframe specified by Potbelly Sandwich Works.

Furthermore, the transferee must secure the right to occupy the shop for the expected franchise term, whether through lease assignment or sublet. If applicable, any agency, host, or authority with jurisdiction over the shop must approve the transfer of the agreement to the transferee. The transferee may also need to sign Potbelly Sandwich Works's then-current forms of franchise agreement and related documents, which may differ materially from the original agreement.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.