How soon after billing is the audit fee due to Potbelly Sandwich Works?
Potbelly_Sandwich_Works Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of fee1 | Amount | Due Date | Remarks |
|---|---|---|---|
| Audit | Cost of inspection or audit (amount of which depends on circumstances and extent of your non compliance) | 15 days after billing | Due if you do not give us reports, supporting records, or other required information or understate required Royalties or other amounts by more than 2%. |
Source: Item 6 — OTHER FEES (FDD pages 17–24)
What This Means (2025 FDD)
According to Potbelly Sandwich Works' 2025 Franchise Disclosure Document, if an audit is conducted, the audit fee is due 15 days after billing. The audit will be conducted if the franchisee does not provide necessary reports, supporting records, or other required information. An audit may also occur if the franchisee understates required royalties or other amounts by more than 2%.
This means a Potbelly Sandwich Works franchisee must maintain accurate records and provide them promptly to Potbelly Sandwich Works to avoid an audit. Failure to do so could result in an audit, and the franchisee will have to pay the cost of the inspection or audit within 15 days of receiving the bill. The amount of the audit fee depends on the circumstances and the extent of the franchisee's non-compliance.
Franchisors commonly reserve the right to audit franchisees to ensure compliance with reporting and payment obligations. The specific terms, such as the timeframe for payment and the reasons for conducting an audit, can vary among franchise systems. Franchisees should be aware of these terms to avoid penalties and maintain a good relationship with the franchisor.