When is the Audit fee due for a Potbelly Sandwich Works franchise, and what triggers this fee?
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%. |
Source: Item 6 — OTHER FEES (FDD pages 17–24)
What This Means (2025 FDD)
According to Potbelly Sandwich Works's 2025 Franchise Disclosure Document, an audit fee may be imposed on franchisees under specific circumstances. This fee is due 15 days after billing.
The audit can be triggered if a franchisee fails to provide required reports, supporting records, or other necessary information to Potbelly Sandwich Works. Additionally, the audit fee is applicable if a franchisee understates required royalties or other amounts owed by more than 2%. The amount of the audit fee will depend on the circumstances and the extent of the franchisee's non-compliance.
This means that Potbelly Sandwich Works franchisees must maintain accurate records and provide timely reports to avoid triggering an audit. Franchisees should ensure they understand the reporting requirements and royalty calculations to minimize the risk of understating payments. Failure to comply with these requirements could result in unexpected audit fees, impacting the profitability of the franchise.