What was the gift card liability for Potbelly Sandwich Works on December 31, 2023?

According to Potbelly Sandwich Works's 2025 Franchise Disclosure Document, the company's gift card liability as of December 31, 2023, was $3,972. This figure represents the total value of outstanding gift cards that have been sold but not yet redeemed by customers.

For a prospective franchisee, the gift card liability is an important consideration because it reflects a future obligation of the business. When a customer redeems a gift card at a Potbelly Sandwich Works location, the franchisee must provide goods or services without receiving additional payment at that time. This liability can impact cash flow and must be carefully managed.

Franchisees should be aware of how Potbelly Sandwich Works accounts for and manages gift card liabilities. Understanding the terms and conditions associated with gift card usage, expiration dates (if any), and any potential escheatment laws (where unclaimed property reverts to the state) is crucial for financial planning and compliance.