When is the initial franchise fee due 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 |
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 initial franchise fee, which ranges from $20,000 to $40,000, is due upon signing the Franchise Agreement. This fee is paid as a lump sum to Potbelly Sandwich Works. The lower end of the range, $20,000, applies if the franchisee is eligible for certain incentive programs.
Specifically, Potbelly Sandwich Works offers a 50/50 Incentive Program for shops opened early or on time in 2025 and 2026, and a LAD Incentive Program for shops opened early before the required shop opening date. If a franchisee qualifies for either of these programs, the initial franchise fee is reduced by 50%, resulting in a $20,000 fee. Otherwise, the standard initial franchise fee of $40,000 is due.
It is important for prospective franchisees to understand these payment terms and any eligibility requirements for the incentive programs. This information is crucial for financial planning and ensuring that the franchisee has sufficient capital available when signing the Franchise Agreement. Franchisees should clarify their eligibility for these programs with Potbelly Sandwich Works before finalizing the agreement.