What is the range of the estimated initial investment for a Potbelly Sandwich Works franchise?
Potbelly_Sandwich_Works Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Expenditure | Low Amount | High Amount | Method of Payment | When Due | To Whom Payment is Made |
|---|---|---|---|---|---|
| Initial Franchise Fee (1) | $20,000 | $40,000 | Lump Sum | Upon signing the Franchise Agreement | Us |
| Rental of Premises | $17,400 | $27,549 | As Agreed | As Incurred | Third Parties |
| (3 months) (2) | |||||
| Architectural Fees | $13,500 | $57,560 | As Agreed | As Incurred | Third Parties and/or PSW, LLC |
| Construction (3) | $450,000 | $570,000 | As Agreed | As Incurred | Third Parties |
| Signage (4) | $3,526 | $75,000 | As Agreed | As Incurred | Third Parties |
| Furniture, Fixtures | $97,000 | $180,085 | As Agreed | As Incurred | Third Parties and |
| & Equipment (5) | PSW, LLC | ||||
| Smallwares | $11,000 | $45,000 | As Agreed | As Incurred | Third Parties and PSW, LLC |
| Technology (6) | $8,000 | $54,665 | As Agreed | As Incurred | Third Parties |
| Training Expenses | $4,000 | $50,000 | As Agreed | As Incurred | Third Parties |
| (7) | |||||
| Insurance (12 | $4,000 | $9,240 | As Agreed | As Incurred | Third Parties |
| months) (8) | |||||
| Professional Fees | $10,000 | $20,000 | As Agreed | As Incurred | Third Parties |
| (9) | |||||
| Business Licenses | $795 | $5,000 | As Agreed | As Incurred | Third Parties |
| & Permits (10) | |||||
| Office Equipment | $1,000 | $5,000 | As Agreed | As Incurred | Third Parties |
| & Supplies (11) | |||||
| Market Introduction Program (12) | $10,000 | $15,000 | As Agreed | As Incurred | Third Parties or PSW, LLC |
| Opening Inventory | $3,698 | $20,000 | As Agreed | As Incurred | Third Parties |
| (13) | |||||
| Type of | Low Amount | High Amount | Method of | When Due | To Whom |
| Expenditure | Payment | Payment is Made | |||
| Additional | $100 | $100,000 | As Agreed | As Incurred | Third Parties |
| Funds (3 months) | |||||
| (14) | |||||
| Total | $654,019 | $1,274,099 |
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 25–28)
What This Means (2025 FDD)
According to Potbelly Sandwich Works's 2025 Franchise Disclosure Document, the total estimated initial investment to open a franchise ranges from $654,019 to $1,274,099. This includes various expenditures such as the initial franchise fee, rental of premises, architectural fees, construction, signage, furniture, fixtures and equipment, smallwares, technology, training expenses, insurance, professional fees, business licenses and permits, office equipment and supplies, market introduction program, opening inventory, and additional funds for the first three months of operation.
The initial franchise fee ranges from $20,000 to $40,000, depending on participation in incentive programs. Construction costs are a significant part of the investment, estimated between $450,000 and $570,000. Other notable costs include furniture, fixtures, and equipment, which range from $97,000 to $180,085, and technology costs, which range from $8,000 to $54,665. Rental costs for the premises are estimated between $17,400 and $27,549 for the first three months.
The FDD also notes that these figures should be carefully reviewed with a business advisor before deciding to acquire the franchise. The estimates do not include the purchase price if you acquire an existing Potbelly Shop from Potbelly Sandwich Works or its affiliate. The document also specifies that Potbelly Sandwich Works does not offer direct or indirect financing for any part of the initial investment. Franchisees should also consider additional expenses such as professional fees, business licenses, and a market introduction program, each contributing to the overall initial investment.