Does Potbelly Sandwich Works require the undersigned to confirm their state(s) of residency?
Potbelly_Sandwich_Works Franchise · 2025 FDDAnswer from 2025 FDD Document
Promptly upon receipt of the Disclosure Document, you must acknowledge receipt by executing the Receipt form prescribed in the Disclosure Document and promptly returning the Receipt to us. We will offer you a franchise to operate a Potbelly Shop at the proposed site by delivering to you our then-current form of standard franchise agreement, together with all standard ancillary documents (including exhibits, riders, collateral assignments of leases, Owner guarantees and other related documents) that we then customarily use in granting franchises for the operation of Potbelly Shops in the state in which the Potbelly Shop is to be located, modified so that the Initial Franchise Fee will be reduced by the amount of the Development Fee you paid for that Potbelly Shop as provided in Section 2.02. The franchise agreement must be executed by you and your Owners and returned to us not earlier than 7 days and not later than 21 days after we deliver it to you, with payment of the initial fees required thereunder. If we do not receive the fully executed franchise agreement and payment of the required initial franchise fee due thereunder, we may revoke our offer to grant you a franchise to operate a Potbelly Shop at the proposed site and may revoke our acceptance of the proposed site.
Source: Item 23 — RECEIPTS (FDD pages 79–355)
What This Means (2025 FDD)
Based on the 2025 FDD, Potbelly Sandwich Works does not explicitly require the undersigned to confirm their state of residency within the provided excerpts. However, there is a clause that indicates the franchise agreement will be modified to align with the state in which the Potbelly Shop is to be located. This suggests that residency or the location of the shop is a relevant factor in the franchising process.
Item 23 includes multiple statements that require the undersigned to insert their initials to confirm their understanding and agreement. These statements cover various aspects of the franchise relationship, such as the absence of a fiduciary relationship, the franchisee's responsibility to seek independent advice, and the independent contractor status between the franchisee and Potbelly Sandwich Works. These acknowledgements highlight the importance of the franchisee's understanding of the legal and financial implications of the franchise agreement.
While the FDD excerpts do not directly ask for a confirmation of the applicant's state of residency, the document does mention that the franchise agreement will be modified to conform to the state where the Potbelly Sandwich Works shop will be located. This implies that Potbelly Sandwich Works considers the location of the franchise when establishing the franchise agreement. A prospective franchisee should confirm with Potbelly Sandwich Works whether they need to provide proof of residency during the application process.