Under what circumstances is no transfer fee due for a Potbelly Sandwich Works franchise?
Potbelly_Sandwich_Works Franchise · 2025 FDDAnswer from 2025 FDD Document
No transfer fee is due if, upon a spouse's death, that spouse's interest in this Agreement and the Shop, or ownership in you, is transferred to the surviving spouse;
Source: Item 22 — CONTRACTS (FDD page 79)
What This Means (2025 FDD)
According to Potbelly Sandwich Works' 2025 Franchise Disclosure Document, a transfer fee is not required if a spouse's interest in the Franchise Agreement, the Potbelly Sandwich Works shop, or ownership in the franchisee is transferred to the surviving spouse upon the other spouse's death.
This provision offers significant relief to surviving spouses, as it eliminates the financial burden of a transfer fee during an already difficult time. Without this clause, the surviving spouse would have to pay a transfer fee to continue operating the Potbelly Sandwich Works location.
It is important to note that this exception applies specifically to transfers to a surviving spouse upon death. Other types of transfers, such as those to other family members or business partners, would still be subject to the standard transfer fees outlined in the Franchise Agreement.