Potbelly Sandwich Shop

The technology fee of $1,061 monthly is substantially higher than the typical range of $200-500 for fast casual restaurants. What specific technology services and systems does this fee cover, and how is it justified compared to industry peers?

Can you provide details on the 8 terminations that occurred over the past 3 years? What were the primary reasons for franchisor-initiated terminations, and were cure opportunities provided?

With a termination rate of 2.1% compared to the typical range of 0.0-1.1%, what operational or compliance issues are most commonly cited as grounds for termination?

The agreement includes 28 termination causes, which is above the typical range of 15-23. Can you identify which of these causes are non-curable and explain the franchisor's rationale for such a broad termination framework?

Territory is non-exclusive with no encroachment protection. How does the franchisor prevent company-operated locations or other franchisees from directly competing within my local market area?

What is the process and timeline for renewal after the initial 10-year term? Does the franchisor have discretion to deny renewal, and what compliance standards must be met?

The transfer fee is $8,000, which is below typical market rates. Are there conditions or franchisor approvals required for unit transfers beyond the fee, and can the franchisor refuse a transfer?

Can you explain the 23 non-curable defaults in the franchise agreement? Are there common situations where franchisees have faced termination without opportunity to cure?

The non-compete clause restricts any fast-casual restaurant deriving more than 20% of revenue from oven-style sandwiches within 7 miles for 2 years. How is compliance with this provision monitored and enforced?

What support does the franchisor provide to franchisees facing performance challenges? Given the 2.1% termination rate, are there remediation programs before termination is pursued?

The franchise agreement requires mandatory arbitration in Chicago, Illinois with jury trial waivers. What is the typical cost and timeline for dispute resolution, and are there alternative dispute resolution options?

All owners and spouses must sign personal guarantees. If the business fails, what recourse does the franchisor have against personal assets, and are there any limitations on franchisor claims?

The median unit volume is $1,063,000. What percentage of franchisees achieve or exceed this benchmark, and what is the typical range of unit performance across the system?

Has the franchisor required or recommended upgrades, renovations, or remodels during the initial term? If so, what is the typical cost and timeline?

Regarding the 8 exclusive supplier categories: how are these suppliers selected, what are typical markups or pricing compared to open-market alternatives, and can franchisees request exceptions or alternatives?

The system has 441 current units but showed a -0.15% CAGR over 3 years. What is the franchisor's growth strategy and unit development plan for the next 3-5 years?

Can you provide a breakdown of the 17 unit growth in the past year between new unit openings, company conversions, and other sources?

What financing assistance or preferred lender relationships does the franchisor offer for initial franchise investment and ongoing operational needs?

Are there specific operational metrics or KPIs (labor costs, inventory, customer count) that the franchisor tracks, and what remediation is required if units fall below acceptable thresholds?

Given that no unit transfers occurred in the past 3 years despite the franchise existing, what barriers or disincentives exist for franchisees seeking to exit the system through sale rather than closure?