What constitutes 'non-compliance' that would trigger an audit fee from 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%. |
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 charged to a franchisee under specific conditions of non-compliance. The audit fee, which covers the cost of the inspection or audit, will depend on the circumstances and the extent of the non-compliance.
Specifically, Potbelly Sandwich Works will levy this fee if a franchisee fails to provide required reports, supporting records, or other necessary information. Additionally, the audit fee is applicable if a franchisee understates required royalties or other amounts owed to Potbelly Sandwich Works by more than 2%.
This fee is due 15 days after billing. It is important for prospective franchisees to maintain accurate records and provide timely reports to Potbelly Sandwich Works to avoid incurring these audit fees. Franchisees should ensure they understand the reporting requirements and royalty calculations to minimize the risk of understatement.