What is the Purchaser required to have sufficient funds for on the date of the Potbelly Sandwich Works closing?

According to Potbelly Sandwich Works' 2025 Franchise Disclosure Document, the Purchaser must have sufficient funds to cover specific financial obligations on the closing date. Specifically, the Purchaser is required to have enough funds to pay the Closing Amount and the Initial Franchise Fee (IFF) that is due at the closing. This requirement ensures that the Purchaser is financially capable of meeting their immediate financial commitments to Potbelly Sandwich Works at the time the transaction is finalized.

This condition is a standard practice in franchising and business acquisitions, as it protects the Seller (Potbelly Sandwich Works in this case) by verifying the Purchaser's ability to complete the financial aspects of the deal. For a prospective franchisee, this means carefully planning and securing the necessary capital to cover these costs. Failure to demonstrate sufficient funds could delay or even prevent the closing of the franchise agreement.

Prospective Potbelly Sandwich Works franchisees should clarify the exact amounts of the Closing Amount and the IFF with Potbelly Sandwich Works to ensure they have adequate funds available. Understanding these costs upfront is crucial for budgeting and financial planning, allowing the franchisee to avoid potential issues during the closing process. This requirement underscores the importance of financial readiness when entering into a franchise agreement with Potbelly Sandwich Works.