What payments must be current for Potbelly Sandwich Works before a transfer can occur?
Potbelly_Sandwich_Works Franchise · 2025 FDDAnswer from 2025 FDD Document
- (2) you have paid all Royalties, Brand Fund contributions, and other amounts owed to us, our affiliates, and third-party vendors; have submitted all required reports and statements; and have not violated any material provision of this Agreement or any other agreement with us during both the sixty (60) day period before you requested our consent to the transfer and the period between your request and the transfer's proposed effective date;
Source: Item 22 — CONTRACTS (FDD page 79)
What This Means (2025 FDD)
According to Potbelly Sandwich Works's 2025 Franchise Disclosure Document, before a transfer of a franchise can be approved, the franchisee must have paid all outstanding Royalties, Brand Fund contributions, and any other amounts owed to Potbelly Sandwich Works, its affiliates, and third-party vendors.
In addition to these payments, the franchisee must have submitted all required reports and statements. The franchisee also must not have violated any material provision of the Franchise Agreement or any other agreement with Potbelly Sandwich Works during the 60-day period before requesting consent for the transfer, as well as the period between the request and the proposed effective date of the transfer.
These conditions ensure that Potbelly Sandwich Works maintains financial stability and operational compliance across its franchise network. A prospective franchisee should be aware of these requirements, as failure to meet them can prevent the transfer of the franchise.