What is the Managing Owner responsible for at a Potbelly Sandwich Works franchise?
Potbelly_Sandwich_Works Franchise · 2025 FDDAnswer from 2025 FDD Document
If you are a legal entity, you must appoint a shareholder, member or partner (as applicable) to be your "Managing Owner," responsible for overseeing and supervising the Shop's operation. If your Managing Owner will not be involved in the Shop's on-site, day-to-day operation, you also must appoint an "Operator," an individual whom you hire to manage the Shop on an on-site, dayto-day basis (or, if you operate more than one Potbelly Shop, to oversee management and operation of all your Potbelly Shops), who reports to the Managing Owner, who is eligible to participate in a long-term incentive plan (i.e., cash bonus or equity grant), and who completes the applicable training requirements. We must approve your proposed Operator, who must sign our Principal's Agreement (see below). You may replace any Operator, although that person must give up his or her ownership interest in you, a replacement Operator must complete training to our satisfaction, and you must identify and we first must approve any new or replacement Operator. Your Shop always must have on staff at least 3 fully trained, certified key-holding supervisory employees, including a Managing Owner and a General Manager, so that the quality of the Products and the Potbelly brand is maintained.
Source: Item 15 — OBLIGATION TO PARTICIPATE IN THE ACTUAL OPERATION OF THE FRANCHISE BUSINESS (FDD pages 56–57)
What This Means (2025 FDD)
According to Potbelly Sandwich Works's 2025 Franchise Disclosure Document, if the franchisee is a legal entity, they must appoint a Managing Owner. This Managing Owner is responsible for overseeing and supervising the Potbelly Sandwich Works shop's operation.
If the Managing Owner is not involved in the shop's on-site, day-to-day operations, the franchisee must also appoint an Operator. This Operator is hired to manage the shop on a day-to-day basis and reports to the Managing Owner. The Operator may also be eligible to participate in a long-term incentive plan, such as a cash bonus or equity grant, and must complete the applicable training requirements. Potbelly Sandwich Works must approve the proposed Operator, who must sign a Principal's Agreement.
Regardless of whether an Operator is appointed, the Potbelly Sandwich Works shop must always have at least three fully trained, certified key-holding supervisory employees on staff. This includes the Managing Owner and a General Manager, ensuring the quality of products and the Potbelly Sandwich Works brand is maintained.