When is the management fee charged by Potbelly Sandwich Works?
Potbelly_Sandwich_Works Franchise · 2025 FDDAnswer from 2025 FDD Document
| Column 1 | Column 2 | Column 3 | Column 4 |
|---|---|---|---|
| Type of fee1 | Amount | Due Date | Remarks |
| Management Fee | Manager's then-current daily salary plus direct expenses | As incurred | Due when we (or a third party) manage Shop after Managing Owner's death or disability or after your default or abandonment. |
Source: Item 6 — OTHER FEES (FDD pages 17–24)
What This Means (2025 FDD)
According to Potbelly Sandwich Works's 2025 Franchise Disclosure Document, a management fee is charged when Potbelly Sandwich Works, or a third party, manages a shop. This occurs after the Managing Owner's death or disability, or after a franchisee's default or abandonment of the shop.
The amount of the management fee is the manager's then-current daily salary plus any direct expenses incurred during the management period. The fee is due as it is incurred, meaning it will be billed periodically as the management services are provided.
This fee is not a standard, ongoing fee but rather a conditional charge that arises only under specific circumstances. It is important for prospective franchisees to understand these conditions to be aware of potential costs associated with unforeseen events or non-compliance with the franchise agreement. Franchisees should clarify with Potbelly Sandwich Works what constitutes 'abandonment' in this context to fully understand the conditions under which this fee could be applied.