What reports and statements must be submitted 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' 2025 Franchise Disclosure Document, before a franchise transfer can be approved, the franchisee must have submitted all required reports and statements. Additionally, all Royalties, Brand Fund contributions, and other amounts owed to Potbelly Sandwich Works, its affiliates, and third-party vendors must be paid.
This requirement ensures that the franchisee is current on all financial and reporting obligations to Potbelly Sandwich Works before ownership changes. This protects the integrity of the Potbelly Sandwich Works system and ensures a smooth transition for the new franchisee.
It is important to note that compliance is assessed during the 60-day period before the transfer request and continues until the transfer's effective date. Failure to meet these conditions could delay or prevent the transfer from being approved. Prospective franchisees should maintain meticulous records of all payments and submitted reports to ensure compliance with these requirements if they plan to transfer their franchise in the future.