What does the 'Additional Funds' estimate for a Potbelly Sandwich Works franchise cover, and for how long?
Potbelly_Sandwich_Works Franchise · 2025 FDDAnswer from 2025 FDD Document
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- Additional Funds (3 Months) This estimates the funds needed to cover your initial expenses for the first 3 months of operation (besides the items identified separately in the table). It includes payroll costs but not any owner's draw or salary. Your costs will depend on how much you follow our methods and procedures; your management skill, experience, and business acumen; local economic conditions; the prevailing wage rate; competition; and your Shop's sales during the initial period. We relied on our affiliates' approximately 23 years of experience developing and operating Potbelly Shops to compile this Additional Funds estimate.
You should review these figures carefully with a business advisor before deciding to acquire the franchise. We do not offer financing directly or indirectly for any part of the initial investment.
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 25–28)
What This Means (2025 FDD)
According to Potbelly Sandwich Works' 2025 Franchise Disclosure Document, the 'Additional Funds' estimate covers the initial expenses for the first 3 months of operation, excluding items listed separately in the initial investment table. These funds are intended to cover costs such as payroll, but do not include any owner's draw or salary. The estimated range for these additional funds is between $100 and $100,000. These funds are paid to third parties as incurred.
The FDD indicates that the actual amount needed for additional funds can vary significantly. Factors influencing these costs include adherence to Potbelly Sandwich Works' methods and procedures, the franchisee's management skills, experience, and business acumen, local economic conditions, prevailing wage rates, competition, and the shop's sales during its initial period.
Potbelly Sandwich Works relied on its affiliates' approximately 23 years of experience in developing and operating Potbelly Shops to compile this estimate. Prospective franchisees are advised to carefully review these figures with a business advisor before making a decision to acquire the franchise, as these costs can greatly impact the initial financial stability of the business.