What is the range for the initial franchise fee 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 |
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 initial franchise fee ranges from $20,000 to $40,000. The standard initial franchise fee is $40,000, which is due upon signing the Franchise Agreement. However, franchisees may be eligible for a reduced initial franchise fee of $20,000 under certain incentive programs.
Specifically, if a franchisee is eligible for the 50/50 Incentive Program and opens a Potbelly Shop early or on time in 2025 and 2026, the initial franchise fee is reduced by 50% to $20,000. Similarly, under the LAD Incentive Program, if a Potbelly Shop opens early before the required shop opening date, the initial franchise fee is also reduced to $20,000. These incentives can significantly lower the initial investment for franchisees who can meet the early opening requirements.
The initial franchise fee is a lump sum payment made to Potbelly Sandwich Works. It is important for prospective franchisees to understand the terms and conditions of these incentive programs and whether they qualify, as this can affect the overall cost of opening a franchise. Franchisees should discuss these programs with Potbelly Sandwich Works to determine their eligibility and the specific requirements for each incentive.