Does Potbelly Sandwich Works guarantee the revenues, profits, or success of the business venture?
Potbelly_Sandwich_Works Franchise · 2025 FDDAnswer from 2025 FDD Document
You have not received or relied on: (a) any guaranty or assurance, express or implied, as to the revenues, profits or success of the business venture contemplated by this SDAA; or (b) any promises that any parent company or Affiliate will back us up financially or otherwise guarantee our performance.
You acknowledge and agree that, if we suggest, approve, or give you information regarding a site, our action is not a representation or warranty of any kind, express or implied, of the site's suitability for a Potbelly Shop or any other purpose.
Our action indicates only that we believe that the site meets our then acceptable criteria and not that a Potbelly Shop will be profitable or successful at the site.
Each of the undersigned understands that:
- 9.1 Except as provided in our FPR, we do not authorize our officers, directors, or employees to furnish any oral or written representation, warranty, promise, guaranty, prediction, projection, or other statement or information concerning actual or potential income, sales volume, or profitability, either generally or of any Potbelly Shop.
- 9.3 We have specifically instructed our officers, directors, and employees that, except as provided in our FPR, they are not permitted to make any representation, warranty, promise, guaranty, prediction, projection, or other statement or give information as to income, sales volume, or profitability, either generally or with respect to any particular Potbelly Shop.
- 9.4 If any unauthorized representation, warranty, promise, guaranty, prediction, projection, or other statement or information is made or given, the undersigned should not (and will not) rely on it and should report it to our management.
Source: Item 23 — RECEIPTS (FDD pages 79–355)
What This Means (2025 FDD)
According to Potbelly Sandwich Works's 2025 Franchise Disclosure Document, prospective franchisees acknowledge that they have not received any guarantees or assurances regarding the revenues, profits, or success of the business venture. The document emphasizes that the success of a Potbelly Sandwich Works franchise depends largely on the franchisee's own business abilities, efforts, and financial resources. This is a standard disclaimer in franchise agreements.
Potbelly Sandwich Works also states that any site suggestion, approval, or information provided regarding a location should not be interpreted as a representation or warranty of the site's suitability or the potential profitability of a Potbelly Sandwich Works shop at that location. The company explicitly states that their criteria for site selection may not accurately reflect the potential of all sites and premises, and they are not responsible if a suggested or approved site fails to meet the franchisee's expectations.
Furthermore, Potbelly Sandwich Works clarifies that they do not authorize their officers, directors, or employees to furnish any oral or written representation, warranty, promise, guaranty, prediction, projection, or other statement or information concerning actual or potential income, sales volume, or profitability, either generally or of any Potbelly Shop. The document advises franchisees not to rely on any unauthorized representations and to report them to management. This reinforces the understanding that franchisees should conduct their own independent investigation and due diligence.
In essence, Potbelly Sandwich Works is conveying that while they offer a franchise system and brand, the financial outcomes of the franchise are not guaranteed and depend on various factors, including the franchisee's capabilities and market conditions. This is a common practice in franchising, where the franchisee bears the ultimate responsibility for the success of their individual business.