What standards does Potbelly Sandwich Works use to evaluate financial and management capabilities?
Potbelly_Sandwich_Works Franchise · 2025 FDDAnswer from 2025 FDD Document
en-existing Potbelly Shops you and your Affiliates own. All such information shall be verified by you and your Owners as being complete and accurate in all respects, shall be submitted to us in accordance with our requirements and will be relied on by us in determining whether to grant a franchise for the proposed Potbelly Shop. We may refuse to grant you a franchise for a Potbelly Shop if you fail to demonstrate sufficient financial and management capabilities to properly develop and operate the proposed Potbelly Shop and the then existing Potbelly Shops you and your Affiliates own. We will evaluate such financial and management capabilities in accordance with standards we use to establish Potbelly Shops in other comparable market areas.
Source: Item 23 — RECEIPTS (FDD pages 79–355)
What This Means (2025 FDD)
According to Potbelly Sandwich Works's 2025 Franchise Disclosure Document, the company evaluates a prospective franchisee's financial and management capabilities to determine whether to grant a franchise. Potbelly Sandwich Works may refuse to grant a franchise if a candidate fails to demonstrate sufficient financial and management capabilities to properly develop and operate the proposed Potbelly Sandwich Works shop, as well as any existing Potbelly Sandwich Works shops they or their affiliates own.
To assess these capabilities, Potbelly Sandwich Works requires franchisees and their owners to furnish financial statements (both historical and pro forma), statements outlining the sources and uses of capital funds, budgets, and other pertinent information. This information pertains not only to the applicant but also to the development and operation of any proposed Potbelly Sandwich Works shop and any existing Potbelly Sandwich Works shops the applicant or their affiliates may already own. All information provided must be complete and accurate.
Potbelly Sandwich Works evaluates financial and management capabilities using standards it employs to establish Potbelly Sandwich Works shops in other comparable market areas. By using consistent standards across different markets, Potbelly Sandwich Works aims to ensure that new franchisees have a similar foundation for success as existing locations. This approach helps maintain brand consistency and reduces the risk of franchisee failure due to inadequate resources or expertise.