What is the estimated low 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 low amount for construction costs is $450,000. This figure is part of the total estimated initial investment, which ranges from $654,019 to $1,274,099. These construction costs are "as agreed" and "as incurred" and are paid to third parties.
The FDD notes that for a traditional Potbelly Sandwich Works shop, franchisees will improve a 1,750 to 2,200 square foot property, with an estimated average cost of $258 per square foot. This includes the costs of general contractors and licensed tradesmen to install electrical and plumbing, but does not consider any landlord contribution. The document also specifies that Potbelly Shops which opened during the 2024 fiscal year had construction costs per square foot ranging between $100 to $235 per square foot, with the average cost per square foot equal to $158 (with a median of $143).
Prospective franchisees should consider that the construction costs could differ if the shop's construction design exceeds Potbelly Sandwich Works's criteria or if the costs of construction materials and labor used in a particular geographic region differ from the estimated cost range, especially in a large metropolitan area. The estimate assumes that leased premises will have pre-build-out attributes such as permanent walls, a base concrete floor, an exposed ceiling, utilities, and an HVAC system. The investment could be substantially higher if the franchisee decides to lease space in an enclosed mall or similar high-rent facility.
It is important to note that these are only estimates, and the actual costs may vary. The FDD recommends that prospective franchisees review these figures carefully with a business advisor before deciding to acquire the franchise. Additionally, Potbelly Sandwich Works does not offer financing directly or indirectly for any part of the initial investment.