What is the estimated low amount for rental premises 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) |
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 rental premises is $17,400 for a three-month period. This figure is part of the estimated initial investment a new franchisee can expect to incur.
This cost covers the rental of the shop's premises for the first three months of operation. The FDD indicates that a traditional Potbelly Sandwich Works shop typically occupies between 1,800 to 2,200 square feet of leased space, usually in locations like strip shopping centers or enclosed malls. The document estimates the cost per square foot to be between $35 and $60, though it notes that this can be considerably higher in large metropolitan areas. The landlord will likely require a security deposit equal to one month's rent.
Prospective franchisees should carefully consider these rental costs, as location and market conditions can significantly impact the actual expenses. It is important to conduct thorough market research and negotiate favorable lease terms to manage this aspect of the initial investment effectively. Additionally, the FDD recommends reviewing these figures with a business advisor before making a final decision on acquiring the franchise.