Can Potbelly Sandwich Works auto debit the late fee from my account?
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, Potbelly Sandwich Works may automatically debit the late fee from a franchisee's account. The late fee is $100 and is due for each late or dishonored payment.
Potbelly Sandwich Works can also auto debit interest from a franchisee's account. The interest is the lesser of 1.5% per month or the highest commercial contract interest rate the law allows. This is due on all overdue amounts more than 7 days late.
Potbelly Sandwich Works can also auto debit the non-approved shop opening fee from a franchisee's account. The non-approved shop opening fee is $5,000 for each day the shop operates without approval. This is due if the franchisee begins operating the shop before Potbelly Sandwich Works gives its approval.