What is the relationship between Potbelly Sandwich Works, LLC and Potbelly Franchising, LLC?
Potbelly_Sandwich_Works Franchise · 2025 FDDAnswer from 2025 FDD Document
We and our affiliate, Potbelly Sandwich Works, LLC ("PSW, LLC"), whose principal business address is the same as ours, have developed (and continue to develop and modify) policies and procedures, confidential information, intellectual property (including software and website), and a distinctive and comprehensive system for constructing, operating, identifying, and promoting Potbelly Shops. PSW, LLC owns the Marks, confidential information, and branded system and has licensed this intellectual property to us to use in the Potbelly Shop franchise program. You also will buy certain Shop operating assets and supplies from PSW, LLC. If you acquire a franchise, you must operate your Shop according to our and PSW, LLC's business formats, methods, procedures, designs, layouts, standards, and specifications. Our and PSW, LLC's immediate parent company is Potbelly Illinois, Inc. and ultimate parent company is Potbelly Corporation (a public company), both of whose principal business addresses are the same as ours. We have no other parent companies. Except for PSW, LLC, no affiliates are disclosable in this Item.
Our Business
We may offer for sale, and sell as franchises, company-owned Potbelly Shops in certain geographical areas.
Source: Item 1 — THE FRANCHISOR AND ANY PARENTS, PREDECESSORS, AND AFFILIATES (FDD pages 9–11)
What This Means (2025 FDD)
According to Potbelly Sandwich Works's 2025 Franchise Disclosure Document, Potbelly Franchising, LLC grants franchises for Potbelly Sandwich Shops. Potbelly Sandwich Works, LLC, an affiliate of Potbelly Franchising, LLC, develops and modifies the policies, procedures, confidential information, intellectual property, and the system for operating Potbelly Shops. Potbelly Sandwich Works, LLC owns the trademarks, confidential information, and branded system, licensing them to Potbelly Franchising, LLC for use in the franchise program. Franchisees will also purchase certain operating assets and supplies from Potbelly Sandwich Works, LLC.
Both Potbelly Franchising, LLC and Potbelly Sandwich Works, LLC share the same principal business address. Their immediate parent company is Potbelly Illinois, Inc., and their ultimate parent company is Potbelly Corporation, a public company. Potbelly Franchising, LLC has been offering franchises since September 2009, but has never operated a Potbelly Shop. Potbelly Sandwich Works, LLC, however, has operated at least one Potbelly Shop since 1997.
In summary, Potbelly Franchising, LLC is the entity that franchises the Potbelly Sandwich Shop concept, while Potbelly Sandwich Works, LLC develops and owns the intellectual property and system that franchisees use. Franchisees interact with both entities, obtaining the franchise from Potbelly Franchising, LLC and purchasing assets and supplies from Potbelly Sandwich Works, LLC.