What site selection assistance does Potbelly Sandwich Works provide to franchisees?
Potbelly_Sandwich_Works Franchise · 2025 FDDAnswer from 2025 FDD Document
es not expressly prohibit.
3. GRANT OF FRANCHISES.
- 3.01 Site Selection Assistance. We will furnish you with our standard site selection criteria for Potbelly Shops, as we may establish at any time and from time to time. We also will provide such on-site evaluation of sites proposed pursuant hereto as we deem necessary or appropriate. We will not conduct site selection activities for you. In granting you the development rights under this SDAA, we are relying on your knowledge of the real estate market in the Area and your ability to locate and access sites.
- 3.02 Applications for Franchises. We will grant franchises to you for the operation of that cumulative number of Potbelly Shops set forth in Exhibit B and located within the Development Area, subject to the following conditions:
- (1) You must submit to us, in accordance with procedures we establish from time to time, a complete application for a franchise and site application form for each site for a Potbelly Shop that you propose to develop and operate and that you in good faith believe to conform to our then current standard site selection
criteria for Potbelly Shops. Such site application shall include a description of each proposed site, including a summary of traffic patterns; parking; character of neighborhood; competition from, proximity to, and nature of other businesses, along with a letter of intent or other evidence confirming your favorable prospects for obtaining the proposed site.
- (2) We will accept or reject each site for which you submit to us complete applications in accordance with Section 3.02(1) and, if we accept such site, we will do so by delivering our standard franchise site package. Our site acceptance letter, duly executed by us, is the exclusive means by which we accept a proposed site, and no other direct or indirect representation, approval or acceptance, whether in writing or verbally, by any of our officers, employees or agents, shall be effective or bind us. We will use all reasonable efforts to make a site acceptance decision and, if the site is accepted, deliver a site acceptance letter to you, within 30 days after we acknowledge receipt of the complete site report and any other materials we have requested. In deciding whether to accept or reject a site you propose, we may consider such factors as we, in our sole discretion, deem appropriate, including the general location and neighborhood, demographic information, traffic patterns, access, visibility, location of other restaurants and food establishments (including other Potbelly Shops) and size, condition, configuration, appearance and other physical characteristics of the site. However, we have the absolute right not to accept any site not meeting these criteria. You acknowledge and agree that, if we suggest, approve, or give you information regarding a site, our action is not a representation or warranty of any kind, express or implied, of the site's suitability for a Potbelly Shop or any other purpose. We do not represent that we, or any of our Affiliates, owners, employees or agents, have special expertise in selecting sites. Our action indicates only that we believe that the site meets our then acceptable criteria and not that a Potbelly Shop will be profitable or successful at the site. Applying criteria that have appeared effective with other sites and premises might not accurately reflect the potential for all sites and premises, and demographic and/or other factors included in or excluded from our criteria could change, altering the potential of a site and premises. The uncertainty and instability of these criteria are beyond our control, and we are not responsible if a site and premises we suggest or approve for the location of a Potbelly Shop fails to meet your expectations. Accordingly, you acknowledge and agree that your decision to develop and operate a Potbelly Shop at any site is based solely on your own independent investigation of the suitability of the site for a Potbelly Shop.
Source: Item 23 — RECEIPTS (FDD pages 79–355)
What This Means (2025 FDD)
According to Potbelly Sandwich Works's 2025 Franchise Disclosure Document, the franchisor offers franchisees some assistance with site selection. Potbelly Sandwich Works will furnish franchisees with its standard site selection criteria, which may be established and changed at any time. They will also provide on-site evaluations of proposed sites if they deem it necessary or appropriate. However, Potbelly Sandwich Works will not conduct site selection activities for the franchisee.
As a franchisee, you must submit a complete franchise application and site application form for each proposed site. This application should include a description of the site, traffic patterns, parking information, neighborhood character, competition analysis, and a letter of intent or evidence confirming the prospects of securing the site. Potbelly Sandwich Works will then accept or reject the site application.
Potbelly Sandwich Works aims to make a decision on site acceptance and deliver a site acceptance letter within 30 days of receiving the complete site report and any other requested materials. In deciding whether to accept or reject a site, Potbelly Sandwich Works may consider factors such as the general location, neighborhood, demographic information, traffic patterns, access, visibility, the location of other restaurants, and the physical characteristics of the site. However, Potbelly Sandwich Works retains the absolute right to reject any site that does not meet its criteria. The franchisor also has the right to accept or refuse the terms of any lease or purchase agreement proposed for a site before the franchisee signs it.