What is the Potbelly Sandwich Works franchisee's obligation regarding customer complaint resolution?
Potbelly_Sandwich_Works Franchise · 2025 FDDAnswer from 2025 FDD Document
However, you have sole responsibility and authority for your labor relations and employment practices, including, among other things, employee selection, promotion, termination, hours worked, rates of pay, other benefits, work assigned, discipline, adjustment of grievances and complaints, and working conditions.
You must communicate clearly with Shop employees in your employment agreements, human resources manuals, written and electronic correspondence, paychecks, and other materials that you (and only you) are their employer and that we, as the franchisor of Potbelly Shops, and our affiliates are not their employer and do not engage in any employer-type activities (including those described above) for which only franchisees are responsible.
Source: Item 22 — CONTRACTS (FDD page 79)
What This Means (2025 FDD)
According to Potbelly Sandwich Works' 2025 Franchise Disclosure Document, franchisees have sole responsibility and authority for the adjustment of grievances and complaints from their employees. Potbelly Sandwich Works, as the franchisor, does not engage in these employer-type activities. Franchisees must communicate clearly with shop employees that they (the franchisee) are the employer and that Potbelly Sandwich Works is not.
This means that while Potbelly Sandwich Works sets the standards for customer service, the franchisee is responsible for handling any specific complaints that arise from their employees or within their shop. This includes establishing procedures for addressing complaints, resolving disputes, and ensuring a positive work environment.
This arrangement is typical in franchising, where the franchisee is an independent business owner responsible for day-to-day operations and employee management. However, franchisees must still adhere to Potbelly Sandwich Works' standards and guidelines in resolving complaints to protect the brand's reputation. Prospective franchisees should clarify with Potbelly Sandwich Works what specific training or resources are provided to help them effectively manage employee grievances and customer complaints.