What is the expected lease liability for Potbelly Sandwich Works in 2027?
Potbelly_Sandwich_Works Franchise · 2025 FDDAnswer from 2025 FDD Document
re as follows at December 29, 2024:
| 2025 | $ 37,722 |
|---|---|
| 2026 | 38,360 |
| 2027 | 33,194 |
| 2028 | 26,432 |
| 2029 | 20,420 |
| Thereafter | 56,549 |
| Total lease payments | 212,677 |
| Less: imputed interest | (61,939) |
| Present value of l |
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING (FDD pages 37–49)
What This Means (2025 FDD)
According to Potbelly Sandwich Works' 2025 Franchise Disclosure Document, the expected lease liability for 2027 is $33,194. This figure represents the anticipated financial obligation Potbelly Sandwich Works has for its leases during that year. It is important to note that this is part of a larger schedule of future lease payments.
This information is crucial for prospective franchisees as it provides insight into the company's long-term financial commitments related to property leases. Understanding these liabilities can help franchisees assess the financial stability and overall health of Potbelly Sandwich Works. The lease payments are a significant operating expense for many businesses, including franchises, and can impact profitability.
The document also provides a breakdown of lease payments for other years, including 2025 ($37,722), 2026 ($38,360), 2028 ($26,432), and 2029 ($20,420), as well as a total for payments thereafter ($56,549). The total lease payments amount to $212,677, from which imputed interest of $61,939 is deducted, resulting in a present value of lease liabilities of $150,738. This broader context allows potential investors to see how lease obligations change over time and understand the overall scale of these financial responsibilities.
It is important for potential franchisees to consider these lease liabilities in conjunction with other financial data provided in the FDD, such as revenue, expenses, and other obligations, to gain a comprehensive understanding of the financial landscape of Potbelly Sandwich Works. Consulting with a financial advisor is recommended to fully assess the implications of these lease liabilities and their potential impact on the franchise's profitability and long-term success.