What representations must an owner make to Potbelly Sandwich Works when applying for a franchise?
Potbelly_Sandwich_Works Franchise · 2025 FDDAnswer from 2025 FDD Document
You and your Owners, if applicable, represent and warrant to us that: (a) neither you nor any of your Owners have made any untrue statement of any material fact or have omitted to state any material fact in obtaining the rights granted hereunder; (b) neither you nor any of your Owners have any direct or indirect legal or beneficial interest in any business that may be deemed a Competitive Business, except as otherwise fully and accurately disclosed in your franchise application submitted to us; and (c) the execution and performance of this SDAA will not violate any other agreement to which you or any of your Owners may be bound.
Source: Item 23 — RECEIPTS (FDD pages 79–355)
What This Means (2025 FDD)
According to Potbelly Sandwich Works' 2025 Franchise Disclosure Document, both the franchisee and their owners must make certain representations to the company. Specifically, they must confirm that they have not provided any false or misleading information during the franchise application process. This ensures that Potbelly Sandwich Works has accurate information on which to base their decision to award a franchise.
Additionally, franchisees and their owners must disclose any existing direct or indirect interests in businesses that could be considered competitive to Potbelly Sandwich Works, unless such interests have been fully and accurately disclosed in the franchise application. This prevents potential conflicts of interest and ensures the franchisee's commitment to the Potbelly Sandwich Works brand.
Finally, franchisees and their owners must affirm that entering into the Franchise Agreement will not violate any other agreements they may be bound by. This protects Potbelly Sandwich Works from legal issues that could arise if the franchisee is unable to fulfill their obligations due to conflicting commitments. These representations are crucial for maintaining the integrity of the Potbelly Sandwich Works franchise system and ensuring a fair and transparent relationship between the franchisor and franchisee.