Can Potbelly Sandwich Works limit suppliers of Operating Assets to specific sources?
Potbelly_Sandwich_Works Franchise · 2025 FDDAnswer from 2025 FDD Document
roved and designated sources.
D. OPERATING ASSETS.
You must use in operating the Shop only those Operating Assets that we designate or approve for Potbelly Shops as meeting our standards and specifications for quality, design, appearance, function, and performance. You may not install or use any unauthorized Operating Assets at the Shop. You agree to place or display at the Shop (interior and exterior) and on delivery/catering vehicles (if applicable) only the signs, emblems, lettering, logos, and display materials we periodically approve. You must purchase or lease approved brands, types, and models of Operating Assets only from suppliers we designate or approve (which may include and/or be limited to us and/or our affiliates).
E. COMPUTER SYSTEM.
You agree to obtain and use the computer hardware and software we specify, including required computer, point-of-sale, and other electronic information systems, a high-speed Internet connection, and all equipment components and software necessary for you to accept and process our gift, loyalty and rewards cards and participate in our gift card, customer loyalty, rewards, affinity, and similar programs (the "Computer System"). We may modify the Computer System's specifications and components. Our modification of the Computer System's specifications, and/or other technological developments or events, might require you to purchase, lease and/or license new or modified computer hardware and/or software and to obtain service and support for the Computer System.
Source: Item 22 — CONTRACTS (FDD page 79)
What This Means (2025 FDD)
According to Potbelly Sandwich Works' 2025 Franchise Disclosure Document, Potbelly Sandwich Works has the right to limit the suppliers from whom franchisees can purchase Operating Assets. Operating Assets are defined as the required fixtures, furniture, furnishings, signs, and equipment needed to operate a Potbelly Sandwich Works shop.
Potbelly Sandwich Works may designate or approve specific Operating Assets that meet their standards for quality, design, appearance, function, and performance. Franchisees are prohibited from using any Operating Assets that have not been authorized by Potbelly Sandwich Works. The franchisee must purchase or lease approved brands, types, and models of Operating Assets only from suppliers that Potbelly Sandwich Works designates or approves, which may include Potbelly Sandwich Works itself or its affiliates.
For items other than Potbelly Trade Secret Products and Potbelly Branded Products, Potbelly Sandwich Works has the option to limit suppliers to themselves, their affiliates, or other specified exclusive sources. In such cases, franchisees are required to acquire Operating Assets and other services from these designated sources at prices determined by Potbelly Sandwich Works or its approved suppliers. Potbelly Sandwich Works retains the absolute right to limit the suppliers with whom franchisees may conduct business.