What is the amount of the late fee charged by Potbelly Sandwich Works?
Potbelly_Sandwich_Works Franchise · 2025 FDDAnswer from 2025 FDD Document
| Column 1 | Column 2 | Column 3 | Column 4 |
|---|---|---|---|
| Type of fee1 | Amount | Due Date | Remarks |
| Audit | Cost of inspection or audit (amount of which depends on circumstances and extent of your non compliance) | 15 days after billing | Due if you do not give us reports, supporting records, or other required information or understate required Royalties or other amounts by more than 2%. |
| Late Fee | $100 | May be auto debited from your account | Due for each late or dishonored payment. |
| Interest | Lesser of 1.5% per month or highest commercial contract interest rate law allows | May be auto debited from your account | Due on all overdue amounts more than 7 days late. |
| Non-Approved Shop Opening | $5,000 for each day your Shop operates without our approval | May be auto debited from your account | Due if you begin operating Shop before we give our approval. |
| Management Fee | Manager's then-current daily salary plus direct expenses | As incurred | Due when we (or a third party) manage Shop after Managing Owner's death or disability or after your default or abandonment. |
| Costs and Attorneys' Fees | Will vary under circumstances and depend on nature of your non-compliance | As incurred | Due when we incur costs and expenses to enforce Franchise Agreement against you, whether or not we begin formal legal proceeding. |
| Indemnification | Will vary under circumstances and depend on nature of third party claim | As incurred | You must reimburse us if we are held liable for claims from your Shop's operation or incur costs to defend them (when we are not at fault). |
Source: Item 6 — OTHER FEES (FDD pages 17–24)
What This Means (2025 FDD)
According to Potbelly Sandwich Works's 2025 Franchise Disclosure Document, a franchisee will be charged a late fee of $100 for each late or dishonored payment. This fee may be automatically debited from the franchisee's account.
In addition to the late fee, Potbelly Sandwich Works also charges interest on all overdue amounts that are more than 7 days late. This interest is the lesser of 1.5% per month or the highest commercial contract interest rate the law allows, and it may also be auto-debited from the franchisee's account.
It is important for prospective Potbelly Sandwich Works franchisees to be aware of these fees and ensure that all payments are made on time to avoid incurring these additional costs. Franchisees should also maintain sufficient funds in their Electronic Funds Transfer Account (EFTA) to cover any potential debits by Potbelly Sandwich Works.