Where can I find information about 'Transfer Fees' associated with Potbelly Sandwich Works?
Potbelly_Sandwich_Works Franchise · 2025 FDDAnswer from 2025 FDD Document
nd your rights under this SDAA.
- 2.02 Development Fee. In consideration of our execution of this SDAA, you agree to pay us a development fee equal to the sum of $40,000 for your first Potbelly Shop and $20,000 times the aggregate number of additional franchised Potbelly Shops which you are required to establish and operate pursuant to this SDAA (the "Development Fee"). The Development Fee is payable in full when you sign this SDAA and will be fully earned when paid. You recognize that we have incurred administrative and other expenses in relation to this SDAA, and that our development opportunities have been lost or curtailed as a result of the territorial rights granted to you in this SDAA. Therefore, we will not refund the Development Fee in whole or in part, under any circumstance.
The Development Fee will be applied against the initial franchise fee that will be payable under the franchise agreements for each of your Potbelly Shops (each, an "Initial Franchise Fee"). Each Initial Franchise Fee will be reduced by the amount of the Development Fee you paid for that Potbelly Shop, that is, by $40,000 for your first Potbelly Shop and by $20,000 for your second and subsequent Potbelly Shops. The Initial Franchise Fee against which the Development Fee will be credited will be our then-current Initial Franchise Fee for each Potbelly Shop opened under this SDAA. You will pay the remaining balance (if any) of the Initial Franchise Fee for each Potbelly Shop to be opened pursuant to this SDAA on the date
Source: Item 23 — RECEIPTS (FDD pages 79–355)
What This Means (2025 FDD)
I am unable to provide information on transfer fees for Potbelly Sandwich Works, as this information is not present within the provided excerpts from the 2025 Franchise Disclosure Document. The excerpts do include information on the development fee for the first Potbelly Shop ($40,000) and for each additional shop ($20,000). The excerpts also discuss the initial franchise fee, and the conditions for obtaining a franchise.
To learn about transfer fees, prospective franchisees should consult Item 5 of the 2025 Potbelly Sandwich Works Franchise Disclosure Document. Item 5 typically contains a comprehensive breakdown of all fees franchisees may be required to pay, including transfer fees, renewal fees, and other costs.
Additionally, it would be beneficial to directly ask the franchisor about all potential transfer fees and the circumstances under which they are applied. Understanding these costs is crucial for assessing the overall financial investment and potential profitability of a Potbelly Sandwich Works franchise.