What organization oversees the arbitration proceedings for Potbelly Sandwich Works disputes?
Potbelly_Sandwich_Works Franchise · 2025 FDDAnswer from 2025 FDD Document
iates and/or employees) arising out of or related to:
- (1) this Agreement or any other agreement between you and us or you and our respective affiliates;
- (2) our relationship with you;
- (3) the scope and validity of this Agreement or any other agreement between you (or your owner) and us (or our affiliate), or any provision of any such agreements, and the validity and scope of the arbitration obligation under this Subsection, which the parties acknowledge is to be determined by arbitrators and not a court; or
- (4) any System Standard;
must be submitted for binding arbitration, on demand of either party, to the American Arbitration Association ("AAA"). The arbitration proceedings will be conducted by one (1) arbitrator if the amount of the claim is Seven Hundred Fifty Hundred Thousand Dollars ($750,000) or less, or three (3) arbitrators if the amount of the claim is more than Seven Hundred Fifty Hundred Thousand Dollars ($750,000). If there is one (1) arbitrator, the arbitrator shall be appointed by the AAA. If there are three (3) arbitrators, the claimant shall appoint one (1) arbitrator in its notice of arbitration and statement of claim; the respondent shall appoint one (1) arbi
Source: Item 22 — CONTRACTS (FDD page 79)
What This Means (2025 FDD)
According to Potbelly Sandwich Works' 2025 Franchise Disclosure Document, any disputes related to the franchise agreement, the relationship between the franchisee and franchisor, the validity of the agreement, or any system standard must be submitted for binding arbitration. The American Arbitration Association (AAA) is the organization that oversees these arbitration proceedings.
The number of arbitrators involved depends on the claim amount. For claims of $750,000 or less, one arbitrator will be appointed by the AAA. For claims exceeding $750,000, a panel of three arbitrators will be used, with each party (claimant and respondent) appointing one arbitrator, and the third being selected in a manner not specified in this excerpt.
This means that if a Potbelly Sandwich Works franchisee has a dispute with the franchisor that cannot be resolved through other means, the dispute will be settled through arbitration managed by the AAA, a neutral organization. The franchisee should be aware of the financial implications, as the complexity and cost of arbitration can increase with higher claim amounts due to the potential for a three-arbitrator panel.