When is one-half of the Potbelly Sandwich Works transfer fee due, and is it refundable?

According to Potbelly Sandwich Works's 2025 Franchise Disclosure Document, when a franchisee requests transfer approval, one-half (½) of the transfer fee is due to Potbelly Sandwich Works. This portion of the transfer fee is non-refundable, regardless of whether the transfer actually occurs.

The transfer fee amount depends on whether the transferee is an existing Potbelly Shop franchisee. If the transferee is not an existing franchisee, the transfer fee is fifty percent (50%) of the then-current initial franchise fee. If the transferee is an existing Potbelly Shop franchisee, the transfer fee is twenty percent (20%) of the then-current initial franchise fee.

This policy means that a Potbelly Sandwich Works franchisee seeking to transfer their franchise will need to pay a portion of the transfer fee upfront when requesting approval, and they will not get this money back even if the transfer falls through. This could represent a significant sunk cost for the franchisee. It is important to consider this non-refundable fee when planning to sell or transfer a Potbelly Sandwich Works franchise.