What is the estimated high amount for construction costs for a Potbelly Sandwich Works franchise?
Potbelly_Sandwich_Works Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Expenditure | Low Amount | High Amount | Method of Payment | When Due | To Whom Payment is Made |
|---|---|---|---|---|---|
| Initial Franchise Fee (1) | $20,000 | $40,000 | Lump Sum | Upon signing the Franchise Agreement | Us |
| Rental of Premises | $17,400 | $27,549 | As Agreed | As Incurred | Third Parties |
| (3 months) (2) | |||||
| Architectural Fees | $13,500 | $57,560 | As Agreed | As Incurred | Third Parties and/or PSW, LLC |
| Construction (3) | $450,000 | $570,000 | As Agreed | As Incurred | Third Parties |
| Signage (4) | $3,526 | $75,000 | As Agreed | As Incurred | Third Parties |
| Furniture, Fixtures | $97,000 | $180,085 | As Agreed | As Incurred | Third Parties and |
| & Equipment (5) | PSW, LLC | ||||
| Smallwares | $11,000 | $45,000 | As Agreed | As Incurred | Third Parties and PSW, LLC |
| Technology (6) | $8,000 | $54,665 | As Agreed | As Incurred | Third Parties |
| Training Expenses | $4,000 | $50,000 | As Agreed | As Incurred | Third Parties |
| (7) | |||||
| Insurance (12 | $4,000 | $9,240 | As Agreed | As Incurred | Third Parties |
| months) (8) | |||||
| Professional Fees | $10,000 | $20,000 | As Agreed | As Incurred | Third Parties |
| (9) | |||||
| Business Licenses | $795 | $5,000 | As Agreed | As Incurred | Third Parties |
| & Permits (10) | |||||
| Office Equipment | $1,000 | $5,000 | As Agreed | As Incurred | Third Parties |
| & Supplies (11) | |||||
| Market Introduction Program (12) | $10,000 | $15,000 | As Agreed | As Incurred | Third Parties or PSW, LLC |
| Opening Inventory | $3,698 | $20,000 | As Agreed | As Incurred | Third Parties |
| (13) | |||||
| Type of | Low Amount | High Amount | Method of | When Due | To Whom |
| Expenditure | Payment | Payment is Made | |||
| Additional | $100 | $100,000 | As Agreed | As Incurred | Third Parties |
| Funds (3 months) | |||||
| (14) | |||||
| Total | $654,019 | $1,274,099 |
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 25–28)
What This Means (2025 FDD)
According to Potbelly Sandwich Works's 2025 Franchise Disclosure Document, the estimated high amount for construction costs is $570,000. This figure is part of the overall estimated initial investment, which ranges from $654,019 to $1,274,099. These construction costs are paid as agreed upon with third-party contractors and are incurred as the construction progresses.
The construction costs pertain to improving a property of approximately 1,750 to 2,200 square feet for a traditional Potbelly Sandwich Works shop. The estimate assumes that the leased premises already have certain pre-build-out attributes, such as permanent walls, a concrete floor, an exposed ceiling, utilities, and an HVAC system. If the premises lack these attributes, or if a franchisee chooses a location in an enclosed mall or high-rent facility, the construction costs could be substantially higher.
It is important to note that the construction costs per square foot for Potbelly Sandwich Works shops opened during the 2024 fiscal year ranged from $100 to $235 per square foot. The estimated construction cost of $570,000 should be carefully reviewed with a business advisor, considering factors such as the specific location, the condition of the premises, and any unique construction requirements. Drive-thru locations may require larger premises, leading to additional construction costs.