What is the non-refundable initial franchise fee for a Potbelly Sandwich Works franchise, and when is it due?
Potbelly_Sandwich_Works Franchise · 2025 FDDAnswer from 2025 FDD Document
aced with the following:
A. INITIAL FRANCHISE FEE.
You agree to pay us a nonrecurring and, except as specifically provided in this Agreement, nonrefundable initial franchise fee of Twenty-Five Thousand Dollars ($25,000). This fee must be paid, and is fully earned by us, when you sign this Agreement. We will credit toward the initial franchise fee any deposit you previously paid u
Source: Item 22 — CONTRACTS (FDD page 79)
What This Means (2025 FDD)
According to Potbelly Sandwich Works's 2025 Franchise Disclosure Document, the initial franchise fee is $25,000. This fee is generally non-refundable, with limited exceptions as outlined in the agreement. The fee is considered fully earned by Potbelly Sandwich Works upon the signing of the Franchise Agreement. Any deposit previously paid under a Shop Development Area Agreement may be credited towards this initial franchise fee.
This means that a prospective franchisee must pay Potbelly Sandwich Works $25,000 when they sign the franchise agreement. This fee compensates Potbelly Sandwich Works for granting the franchise and providing initial support and training. Because the fee is non-refundable, the franchisee will not receive this money back even if they later decide not to open a Potbelly Sandwich Works location, unless otherwise specified in the agreement.
It is important for potential franchisees to understand that this initial fee is separate from other costs associated with opening a Potbelly Sandwich Works, such as real estate, construction, equipment, and inventory. Franchisees should carefully review the Franchise Agreement and related documents to fully understand the terms and conditions of the franchise, including the circumstances under which any portion of the initial fee might be refundable.