What is the segment measure of profit or loss that the CODM reviews for Potbelly Sandwich Works?
Potbelly_Sandwich_Works Franchise · 2025 FDDAnswer from 2025 FDD Document
We own and operate Potbelly Sandwich Shop concepts in the United States. We also have domestic franchise operations of Potbelly Sandwich Shops concepts. We have no customers that account for ten percent or more of our total revenue. Our chief operating decision maker (the "CODM") is our Chief Executive Officer. The CODM reviews entitywide operating results on a recurring basis to allocate resources, evaluate strategic decisions and to monitor budget versus actual results. As part of this review, the CODM examines the consolidated statement of operations, including the descriptive drivers of key line items within the consolidated statement of operations (e.g. sandwich shop sales and occupancy expenses) and consolidated net income, which is the segment measure of profit or loss. As the CODM reviews financial performance and allocates resources at a consolidated level on a recurring basis, we have one operating segment and one reportable segment. The accounting policies of the single reportable segment are the same as those described in the summary of significant accounting policies. The measure of the single reportable segment assets that the CODM reviews is reported on the Consolidated Balance Sheet as "Total assets".
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING (FDD pages 37–49)
What This Means (2025 FDD)
According to Potbelly Sandwich Works' 2025 Franchise Disclosure Document, the Chief Operating Decision Maker (CODM), who is the Chief Executive Officer, reviews entity-wide operating results to allocate resources, evaluate strategic decisions, and monitor budget versus actual results. As part of this review, the CODM examines the consolidated statement of operations, including the descriptive drivers of key line items within the consolidated statement of operations, such as sandwich shop sales and occupancy expenses, and consolidated net income.
For Potbelly Sandwich Works, consolidated net income is the segment measure of profit or loss that the CODM reviews. The CODM reviews financial performance and allocates resources at a consolidated level on a recurring basis. Because of this, Potbelly Sandwich Works has one operating segment and one reportable segment.
This means that Potbelly Sandwich Works assesses its financial performance as a whole, rather than breaking it down into different segments. For a potential franchisee, this indicates that the overall financial health of the entire Potbelly system is what drives decisions and resource allocation at the highest level. The accounting policies of the single reportable segment are the same as those described in the summary of significant accounting policies. The measure of the single reportable segment assets that the CODM reviews is reported on the Consolidated Balance Sheet as "Total assets".