factual

What are the requirements that must be met before Potbelly Sandwich Works will allow a franchisee to open?

Potbelly_Sandwich_Works Franchise · 2025 FDD

Answer from 2025 FDD Document

You must do the following, at your own expense, to construct, develop, and begin operating the Shop:

(1) secure all financing required to construct, develop, and operate the Shop;

  • (2) obtain all required zoning, building, utility, sign, health, sanitation, business, and other permits and licenses;
  • (3) build out the Shop's space and decorate the Shop according to approved plans and specifications;
  • (4) obtain all customary contractors' sworn statements and partial and final lien waivers for construction, remodeling, decorating, and installation services;
  • (5) purchase or lease, and install, all required fixtures, furniture, furnishings, signs, vehicles (if we require or allow you to provide delivery and catering services from your Shop), and equipment (including required computer, point-of-sale, and other electronic information systems and all equipment components and software necessary for you to accept and process our gift, loyalty and rewards cards and participate in our gift card, customer loyalty, rewards, affinity, and similar programs) (collectively, "Operating Assets"); and
  • (6) purchase an opening inventory of required, authorized, and approved Potbelly Trade Secret Products and Potbelly Branded Products from us, our affiliates, or other designated sources and other products, materials, and supplies from approved and designated sources.

Source: Item 22 — CONTRACTS (FDD page 79)

What This Means (2025 FDD)

According to Potbelly Sandwich Works' 2025 Franchise Disclosure Document, a franchisee must fulfill several requirements before opening their shop. These stipulations cover securing finances, obtaining necessary permits, completing construction, and procuring essential assets.

Specifically, the franchisee is responsible for securing all financing needed to construct, develop, and operate the Potbelly Sandwich Works shop. They must also obtain all required zoning, building, utility, sign, health, sanitation, business, and other permits and licenses. The franchisee is obligated to build out the shop's space and decorate it according to approved plans and specifications, as well as obtain all customary contractors' sworn statements and lien waivers for construction services.

Furthermore, the franchisee must purchase or lease and install all required fixtures, furniture, furnishings, signs, vehicles (if delivery and catering services are offered), and equipment, including computer and point-of-sale systems. They are also required to purchase an opening inventory of required, authorized, and approved Potbelly Trade Secret Products and Potbelly Branded Products from Potbelly Sandwich Works, its affiliates, or other designated sources, along with other products, materials, and supplies from approved sources. These requirements ensure that each Potbelly Sandwich Works location meets the brand's standards before commencing operations.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.