What is the maximum amount Potbelly Sandwich Works can charge for a re-inspection fee?
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 |
| Brand Damages | Will vary under circumstances | As incurred | Due only if you terminate the Franchise Agreement before it expires, in which case you must pay us for all damages, costs and expenses related to the early termination |
| Maintenance Cost Reimbursement | Out-of-pocket cost reimbursement and our then current per-day fee | As incurred | You must reimburse our costs for correcting your Shop's sub-standard appearance or condition. |
| Insurance Reimbursement | Out-of-pocket cost reimbursement | As incurred | You must reimburse us if we obtain required insurance for you if you fail to obtain or maintain required coverage (your failure is a Franchise Agreement default). |
| Customer | Out-of-pocket | As incurred | You must reimburse us if we resolve a |
| Complaint | cost | customer complaint because you do not | |
| Reimbursement | reimbursement | do so. | |
| Tax Reimbursement | Out-of-pocket cost reimbursement | As incurred | You must reimburse us for any taxes we must pay to a state taxing authority on account of either your operation or your payments to us (except for our income taxes). |
| De-identification Reimbursement | Out-of-pocket cost reimbursement | As incurred | You must reimburse our costs to de brand the Shop after the franchise ends if you fail to do so as required. |
| Re-inspection Fee | Up to $2,500 | As incurred | Due for 2nd and each subsequent follow-up Shop inspection to confirm you have corrected operating deficiencies we have brought to your attention. |
| Non Compliance Fee | $250 per violation | Within 5 days | Due if you deviate from contractual requirement, including System Standard. This compensates us for administrative and management costs, not for our damages due to your default. |
Source: Item 6 — OTHER FEES (FDD pages 17–24)
What This Means (2025 FDD)
According to Potbelly Sandwich Works' 2025 Franchise Disclosure Document, the maximum re-inspection fee is $2,500. This fee is incurred when Potbelly Sandwich Works conducts a second or subsequent follow-up shop inspection to confirm that a franchisee has corrected any operational deficiencies that Potbelly Sandwich Works has previously identified and brought to their attention. The fee is due as incurred.
This means that if a Potbelly Sandwich Works location fails an initial inspection and requires follow-up inspections to verify corrections, the franchisee could be charged up to $2,500 for each subsequent inspection. This fee is in addition to any other costs the franchisee incurs to correct the deficiencies themselves.
Franchisees should ensure they understand the operational standards and compliance requirements to avoid these re-inspection fees. Maintaining consistent adherence to Potbelly Sandwich Works' standards is crucial for avoiding these costs, which can significantly impact profitability if deficiencies are not promptly addressed.