Is the geographic area provided by Potbelly Sandwich Works for site selection exclusive?

According to Potbelly Sandwich Works' 2025 Franchise Disclosure Document, the geographic area provided for site selection is non-exclusive. Specifically, if a franchisee has not yet secured a location for their Potbelly Sandwich Works shop by the effective date of the franchise agreement, they are given 180 days to find a suitable location within a defined geographic area. However, this area is explicitly described as non-exclusive.

This non-exclusive designation means that Potbelly Sandwich Works retains the right to establish other franchised or company-owned locations within the same geographic area. A prospective franchisee should understand that this could lead to direct competition from other Potbelly Sandwich Works outlets. The franchisee must obtain written acceptance of the shop's proposed location from Potbelly Sandwich Works before signing any lease or sublease.

Furthermore, the FDD emphasizes that Potbelly Sandwich Works' acceptance of a site does not constitute a warranty of its suitability or potential profitability. The franchisee is responsible for conducting their own independent investigation to determine if the site is appropriate for a Potbelly Sandwich Works shop. This underscores the importance of thorough due diligence on the part of the franchisee when selecting a location.

In addition to the non-exclusive geographic area for general site selection, the document clarifies that any delivery and/or catering area specified by Potbelly Sandwich Works is also non-exclusive, except for Non-Traditional Locations. This means Potbelly Sandwich Works can engage other franchisees or third parties to perform activities, including delivery services, within the same delivery area. For Non-Traditional Locations, the delivery and catering area is limited to the Facility and is deemed exclusive only within that Facility.