Can a transferee of a Potbelly Sandwich Works franchise have an ownership interest in a Competitive Business?

According to Potbelly Sandwich Works' 2025 Franchise Disclosure Document, a transferee seeking to acquire a Potbelly Sandwich Works franchise cannot have an ownership interest in or perform services for a Competitive Business. This restriction applies regardless of where the Competitive Business is located or operates.

Potbelly Sandwich Works defines a "Competitive Business" as any fast-casual restaurant deriving more than 20% of its revenue from specific types of sandwiches (such as sub-style, pita, or flatbread sandwiches) or from smoothies and frozen confections. It also includes businesses that grant franchises or licenses for these types of restaurants, excluding other Potbelly Sandwich Works locations. The FDD lists specific examples of businesses considered competitive, such as Blimpie, Firehouse Subs, Jersey Mike's, and Subway.

This condition is part of the requirements that Potbelly Sandwich Works assesses to approve a transfer. The franchisor aims to ensure that new franchisees are fully committed to the Potbelly Sandwich Works system and do not have conflicting business interests that could detract from their focus or potentially harm the brand. A prospective franchisee should carefully review the definition of "Competitive Business" and ensure they, their owners, and affiliates meet this requirement to avoid any issues during the transfer approval process.