What is the 'Franchise System' for Potbelly Sandwich Works defined as?

According to Potbelly Sandwich Works' 2025 Franchise Disclosure Document, the 'Franchise System' is defined as the granting of franchises to operate a Potbelly Shop using the Intellectual Property and offering the Products and services that Potbelly Sandwich Works requires and authorizes. This means that franchisees are given the right to use Potbelly Sandwich Works' trademarks, confidential information, and branded system to run their shops. They are also obligated to offer the specific products and services that Potbelly Sandwich Works has approved.

For a prospective franchisee, this definition highlights the importance of adhering to Potbelly Sandwich Works' standards and procedures. Franchisees must operate their shops according to the established 'Branded System' and offer the approved 'Products'. This ensures consistency across all Potbelly Sandwich Works locations and helps maintain the brand's reputation. The reference to 'Intellectual Property' underscores the need to protect the brand's assets, such as trademarks and trade secrets.

The definition also implies that Potbelly Sandwich Works has the authority to modify the Franchise System over time. Franchisees must stay updated with any changes to the system and implement them in their shops. This could include new products, services, or operational procedures. While franchisees have the right to manage and operate their shops, they must do so within the framework of the Franchise System.

In essence, the 'Franchise System' represents the comprehensive set of rules, procedures, and standards that govern how a Potbelly Sandwich Works franchise operates. It is the foundation upon which the franchise relationship is built, ensuring that all franchisees adhere to the brand's guidelines and contribute to its overall success.