How is the Production Fee for a Potbelly Sandwich Works franchise payable?

According to Potbelly Sandwich Works's 2025 Franchise Disclosure Document, the Production Fee, which is equal to one percent of the Shop's Gross Sales, is payable in the same manner as the Royalty fee. This means that the method and timing of payment for the Production Fee will mirror that of the Royalty fee.

The FDD specifies that Potbelly Sandwich Works uses the Production Fees to create marketing materials, develop websites, conduct research, and hire agencies for advertising and marketing. Potbelly Sandwich Works retains sole control over how these Production Fees are spent. Franchisees receive one set of standard marketing materials at no additional cost, but must pay for additional supplies.

It is important for prospective franchisees to understand that the Production Fee is a recurring expense tied directly to gross sales. Franchisees should clarify with Potbelly Sandwich Works the exact payment schedule and methods for both the Royalty and Production Fees to ensure they can manage their cash flow effectively. Additionally, franchisees should inquire about the typical range of marketing materials needed and the associated costs beyond the initial standard set.