What was the total long-term debt for Potbelly Sandwich Works as of December 31, 2023?
Potbelly_Sandwich_Works Franchise · 2025 FDDAnswer from 2025 FDD Document
ts of long-term debt were as follows:
| December 29, 2024 | December 31, 2023 | |
|---|---|---|
| Revolving Facility | $ 4,000 | $ — |
| Term Loan | — | 22,162 |
| Unamortized debt issuance costs | — | (1,744) |
| Less: current portion of long-term debt | — | (1,250) |
| Total |
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING (FDD pages 37–49)
What This Means (2025 FDD)
According to Potbelly Sandwich Works's 2025 Franchise Disclosure Document, the total long-term debt as of December 31, 2023, was $19,168,000. This figure is derived from the sum of the term loan ($22,162,000) minus unamortized debt issuance costs ($1,744,000) and the current portion of long-term debt ($1,250,000).
For a prospective franchisee, understanding the franchisor's debt is crucial as it can indicate the financial stability and flexibility of Potbelly Sandwich Works. High debt levels might suggest financial strain, potentially impacting the franchisor's ability to support franchisees or invest in the brand. Conversely, well-managed debt can fuel growth and innovation.
It is important to note that on February 7, 2024, Potbelly Sandwich Works entered into a credit agreement for a revolving loan facility of $30,000,000 and repaid the term loan facility. This change in debt structure could affect future financial performance and should be considered when evaluating the franchise opportunity. A franchisee should investigate how these changes might impact the franchisor's support and resources available to them.