What is the role of the 'Managing Owner' for a Potbelly Sandwich Works franchise?
Potbelly_Sandwich_Works Franchise · 2025 FDDAnswer from 2025 FDD Document
tive Date, if applicable, is identified in Exhibit A. If your Managing Owner transfers his or her ownership interest in you during this Agreement's term, you agree to appoint a new Managing Owner (whom we must approve), and to have that new Managing Owner attend and satisfactorily complete the training we require for Managing Owners (the length and substance of which may depend on whether you operate only the Shop or operate multiple Potbelly Shops), within the timeframe we specify. Employees at the Shop are your employees and will be under your control in implementing and maintaining System Standards at the Shop; and
- (6) The Shop and other Potbelly Shops, if applicable, will be the only business you operate (although your owners may have other, non-competitive business interests if they do not conflict with your obligations under this Agreement).
D. GRANT OF FRANCHISE.
You have applied for a franchise to operate a Potbelly Shop at ___________________________________________________________ (the "Site"). (If you have not found a location for your Shop as of the Effective Date, the Site will be identified after you do so, as provided in Subsection 2.A. below.) Subject to this Agreement's terms, we grant you a franchise (the "Franchise"
Source: Item 22 — CONTRACTS (FDD page 79)
What This Means (2025 FDD)
According to Potbelly Sandwich Works' 2025 Franchise Disclosure Document, the Managing Owner is a key figure who must complete a training program. After signing the Franchise Agreement, Potbelly Sandwich Works will conduct a training program for the Managing Owner at no additional charge. This training is scheduled for approximately six weeks, and the Managing Owner must also attend a four-day owner training course at a designated Potbelly Shop. This training must be completed before the shop opens and focuses on the company's philosophy, system standards, and material aspects of operating a Potbelly Shop, excluding labor relations and employment practices.
The Managing Owner's satisfactory completion of the training program is critical; if they cannot complete the initial training, Potbelly Sandwich Works may terminate the Franchise Agreement, and the initial franchise fee is non-refundable. If the Managing Owner transfers their ownership interest during the agreement's term, the franchisee must appoint a new Managing Owner, subject to Potbelly Sandwich Works' approval. The new Managing Owner must also attend and satisfactorily complete the required training, with the length and substance of the training potentially varying based on whether the franchisee operates a single shop or multiple locations.
This requirement ensures that each Potbelly Sandwich Works location is managed by someone thoroughly trained in the brand's standards and operational procedures. The Managing Owner's role is so vital that failure to maintain a trained individual in this position can lead to termination of the franchise agreement. This highlights the importance Potbelly Sandwich Works places on consistent brand representation and operational excellence across all its franchise locations. The Managing Owner is identified in Exhibit A of the Franchise Agreement.