Does Potbelly Sandwich Works have the right to control usage of the Marks by third parties?
Potbelly_Sandwich_Works Franchise · 2025 FDDAnswer from 2025 FDD Document
(We restrict your sources of Potbelly Trade Secret Products and Potbelly Branded Products to protect trade secrets and other intellectual property rights, assure quality, assure a reliable supply of products meeting our standards, achieve better terms of purchase and delivery service, control usage of the Marks by third parties, and monitor the manufacture, packaging, processing, and sale of these items.)
In the case of Operating Assets, services, and items other than Potbelly Trade Secret Products and Potbelly Branded Products, suppliers may at our option be limited to us, our affiliates and/or other specified exclusive sources, in which case you must (at our direction) acquire such Operating Assets, other items, and services (including gift, loyalty, rewards, and affinity card processing services, quality assurance services, music network provider services, "mystery" and "secret" shopper services, and consumer satisfaction survey processes) during the Term only from us, our affiliates and/or the other specified exclusive sources at the prices we or they decide to charge. We have the absolute right to limit the suppliers with whom you may deal;
Source: Item 22 — CONTRACTS (FDD page 79)
What This Means (2025 FDD)
According to Potbelly Sandwich Works's 2025 Franchise Disclosure Document, Potbelly Sandwich Works retains the right to control the usage of its Marks by third parties. Specifically, Potbelly Sandwich Works restricts the sources of Potbelly Trade Secret Products and Potbelly Branded Products to protect trade secrets and other intellectual property rights, assure quality, assure a reliable supply of products meeting their standards, achieve better terms of purchase and delivery service, control usage of the Marks by third parties, and monitor the manufacture, packaging, processing, and sale of these items.
This control extends to limiting suppliers for Operating Assets, services, and items other than Potbelly Trade Secret Products and Potbelly Branded Products to Potbelly Sandwich Works, its affiliates, and/or other specified exclusive sources. In such cases, franchisees must acquire these Operating Assets, other items, and services (including gift, loyalty, rewards, and affinity card processing services, quality assurance services, music network provider services, "mystery" and "secret" shopper services, and consumer satisfaction survey processes) from these specified sources at the prices they decide to charge.
Potbelly Sandwich Works has the absolute right to limit the suppliers with whom franchisees may deal. This enables Potbelly Sandwich Works to maintain brand consistency and quality control across all franchise locations, ensuring that products and services meet their standards and protect their intellectual property rights.