What is the cost of a Non Compliance Fee for Potbelly Sandwich Works, and when is it due?
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 |
| Non- Compliance Fee | $250 per violation | Within 5 days | Due if you deviate from contractual requirement, including System Standard. This compensates us for administrative and management costs, not for our damages due to your default. |
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 Non-Compliance Fee is $250 per violation. This fee is due within 5 days of the violation.
The Non-Compliance Fee is charged if a franchisee deviates from any contractual requirement, including System Standards. Potbelly Sandwich Works specifies that this fee is intended to compensate them for administrative and management costs associated with the violation, and not for damages incurred as a result of the franchisee's default.
Franchisees should be aware of the potential for this fee and ensure they adhere to all contractual requirements and System Standards outlined by Potbelly Sandwich Works to avoid incurring these costs. Understanding and complying with these standards is crucial for maintaining a good standing with the franchisor and avoiding unexpected expenses.