What is the estimated low amount for additional funds 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) |
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 low amount for additional funds for the first 3 months of operation is $100. This figure is intended to cover initial expenses not specifically listed in the initial investment table, including payroll costs, but excluding any owner's draw or salary. The actual amount needed can vary significantly, with a high estimate of up to $100,000, depending on factors such as management skills, local economic conditions, wage rates, competition, and the shop's sales during its initial months.
This "Additional Funds" estimate is based on Potbelly Sandwich Works's affiliates' 23 years of experience operating Potbelly Shops. It is crucial for prospective franchisees to carefully review these figures with a business advisor to assess their financial readiness.
Prospective franchisees should prepare for a wide range of potential costs during the initial months of operation, and the $100 figure represents a bare minimum. It is important to conduct thorough market research and develop a detailed business plan to accurately project the required additional funds for their specific location and circumstances. This will help ensure they have sufficient capital to sustain the business through its early stages and achieve profitability.