What are the principal trademarks that a Potbelly Sandwich Works franchisee is allowed to use?

According to Potbelly Sandwich Works's 2025 Franchise Disclosure Document, franchisees are authorized to use specific trademarks to operate their shops. These principal marks, as listed in Item 13, include "POTBELLY", "POTBELLY SANDWICH SHOP", "POTBELLY SANDWICH WORKS", various designs incorporating the Potbelly name and a stove image, and phrases like "YA GOTTA GET IT HOT" and "GOOD VIBES. GREAT SANDWICHES". Additionally, the trademark "WE BRING THE HOT" is included, although its affidavits of use and incontestability are still pending. These trademarks are registered on the Principal Register of the United States Patent and Trademark Office (USPTO), signifying Potbelly Sandwich Works's legal claim to these brands.

Potbelly Sandwich Works retains ownership of these marks through its affiliate, PSW, LLC, which licenses them for use in the franchise program. This licensing agreement has an initial term of 20 years, with options for three 10-year renewals, provided Potbelly Sandwich Works is not in default. While franchisees are permitted to use these marks, they must adhere to Potbelly Sandwich Works's guidelines, including proper trademark registration notices. Franchisees are prohibited from using the marks in unauthorized ways, such as in their corporate name or with modifications not approved by Potbelly Sandwich Works.

It is important for prospective franchisees to understand that Potbelly Sandwich Works will protect these trademarks. Franchisees must immediately report any potential infringement or challenges to the use of these marks. Potbelly Sandwich Works has the exclusive right to control any litigation or proceedings related to the trademarks, and franchisees are required to assist in protecting the company's interests. Franchisees must also comply with any directives to modify or discontinue the use of a trademark, although Potbelly Sandwich Works is not obligated to reimburse direct expenses for changes to signage or lost revenue due to modified or discontinued marks.

While the FDD mentions that Potbelly Sandwich Works is aware of potential similar uses of the "Potbelly" name by other businesses, it cannot confirm if these uses infringe on their trademarks. Potbelly Sandwich Works plans to investigate such uses when entering new markets and will take appropriate action. If superior prior rights to the "Potbelly" name exist in a particular market, Potbelly Sandwich Works may decide not to grant a franchise in that market. This highlights the importance of trademark protection and the steps Potbelly Sandwich Works takes to safeguard its brand identity.