The Potbelly Sandwich Shop franchise requires a total investment of $654K – $1.27M with a 6.0% royalty fee and operates 95 units in the QSR category. This report analyzes the full Franchise Disclosure Document including unit economics, fee structure, growth trends, and risk indicators to help you evaluate the cost of investing in Potbelly Sandwich Shop.
Critical issues identified from FDD analysis that warrant serious consideration before investing.
Composite quality score based on growth, stability, efficiency, fees, transparency, and system size.
Estimated initial investment range as disclosed in the most recent FDD.
| Line Item | Low Estimate | High Estimate |
|---|---|---|
| Franchise Fee | $20,000 | $40,000 |
| Real Estate | $17,400 | $27,549 |
| Other | $13,500 | $57,560 |
| Buildout | $450,000 | $570,000 |
| Signage | $3,526 | $75,000 |
| Equipment | $97,000 | $180,085 |
| Equipment | $11,000 | $45,000 |
| Technology | $8,000 | $54,665 |
| Training | $4,000 | $50,000 |
| Insurance | $4,000 | $9,240 |
| Legal Accounting | $10,000 | $20,000 |
| Other | $795 | $5,000 |
| Other | $1,000 | $5,000 |
| Other | $10,000 | $15,000 |
| Inventory | $3,698 | $20,000 |
| Working Capital | $100 | $100,000 |
| Total | $654,019 | $1,274,099 |
Ongoing fees as disclosed in the FDD.
| Fee Type | Rate | Type | Basis | Frequency |
|---|---|---|---|---|
| Royalty | 6.0% | PCT | Shop's weekly Total Revenue | weekly |
| Brand Fund | 3.0% | PCT | Shop's weekly Total Revenue | weekly |
| Local Marketing Spend | 1.0% | PCT | Shop's Total Revenue | ongoing |
| Successor Franchise | 25.0% | PCT | Then-current initial franchise fee | one_time |
| Transfer (Controlling Transfers) | 20.0% | PCT | Then-current initial franchise fee | one_time |
| Transfer (Non-Controlling Transfers) | $500 | FIXED | Per transfer request | one_time |
| Transfer (Convenience of Ownership) | $500 | FIXED | Per transfer request | one_time |
| Additional Training or Re-Training | $500 | FIXED | Per day per trainer | as_incurred |
| Special Assistance | $500 | FIXED | Per day plus out-of-pocket costs | as_incurred |
| Product and Service Purchases | N/A | VARIABLE | Product/service purchased | as_incurred |
| Technology Services Fee | $1,061 | FIXED | Monthly base plus per-transaction | monthly |
| Technology Services Fee - Per Transaction | $0 | FIXED | Per online ordering transaction | monthly |
| Annual Convention | $1,000 | FIXED | Per convention | annually |
| Franchisee Advisory Council | N/A | VARIABLE | Council assessments | as_levied |
| Testing | N/A | VARIABLE | Cost of testing | as_incurred |
| Relocation | 20.0% | PCT | Then-current initial franchise fee | one_time |
| Rent | N/A | VARIABLE | Monthly rent | monthly |
| Public Offering | $10,000 | FIXED | Per offering review | one_time |
| Operations Manual | $500 | FIXED | Per replacement | one_time |
| Audit | N/A | VARIABLE | Cost of inspection or audit | as_incurred |
| Late Fee | $100 | FIXED | Per late or dishonored payment | as_incurred |
| Interest | 1.5% | PCT | Monthly on overdue amounts | monthly |
| Non-Approved Shop Opening | $5,000 | FIXED | Per day | daily |
| Management Fee | N/A | VARIABLE | Manager's daily salary plus expenses | as_incurred |
| Costs and Attorneys' Fees | N/A | VARIABLE | Actual costs incurred | as_incurred |
| Indemnification | N/A | VARIABLE | Actual costs incurred | as_incurred |
| Brand Damages | N/A | VARIABLE | Actual damages | one_time |
| Maintenance Cost Reimbursement | N/A | VARIABLE | Out-of-pocket cost plus per-day fee | as_incurred |
| Insurance Reimbursement | N/A | VARIABLE | Out-of-pocket cost | as_incurred |
| Customer Complaint Reimbursement | N/A | VARIABLE | Out-of-pocket cost | as_incurred |
| Tax Reimbursement | N/A | VARIABLE | Out-of-pocket cost | as_incurred |
| De-identification Reimbursement | N/A | VARIABLE | Out-of-pocket cost | one_time |
| Re-inspection Fee | $2,500 | FIXED | Per re-inspection | as_incurred |
| Non-Compliance Fee | $250 | FIXED | Per violation | as_incurred |
| Administrative Fee | $500 | FIXED | Per day | daily |
| Schematic Investigation Report (SIR) Fee | N/A | VARIABLE | Out-of-pocket cost | one_time |
| Area Cooperative Contributions | 1.0% | PCT | Total Revenue | as_established |
Financial Performance Representations not disclosed by this franchisor
Approximately 40% of franchisors choose not to include Item 19 financial performance data in their FDD. This does not necessarily indicate poor performance -- it simply means the franchisor has elected not to disclose this information.
Model your personal financial scenario by adjusting the assumptions below.
Automated risk indicators based on FDD data analysis.
Franchise unit trajectory based on FDD Item 20 data.
| Year | Start | Opened | Closed | Transferred | End | Closure Rate | Net Growth |
|---|---|---|---|---|---|---|---|
| 2022 | 46 | +1 | -2 | 0 | 45 | 4.3% | -1 |
| 2023 | 45 | +38 | -4 | 0 | 79 | 8.9% | +34 |
| 2024 | 79 | +18 | -2 | 0 | 95 | 2.5% | +16 |
How Potbelly Sandwich Shop compares to peer brands in the QSR category.
Ratio = Investment midpoint ÷ median annual revenue. Lower is better. A 0.5x ratio means the initial investment equals half of one year's gross revenue. Does not account for operating costs, margins, or time value of money.
| Brand | Total Units | Investment Range | Median Revenue | Royalty | Inv/Rev Ratio |
|---|---|---|---|---|---|
| Subway | 19502 | $3K – $630K | No Item 19 | -- | -- |
| McDonald's | 12772 | $1.47M – $2.64M | No Item 19 | 5.0% | -- |
| Dunkin' | 8499 | $527K – $1.83M | $1.43M | -- | 0.8x |
| Domino's Pizza | 7043 | -- | $24K | 5.5% | -- |
| Burger King | 6701 | -- | No Item 19 | -- | -- |
| Wendy's | 5552 | $393K – $2.99M | $2.23M | 4.0% | 0.8x |
| Little Caesars | 3705 | $446K – $1.82M | No Item 19 | 6.0% | -- |
| KFC | 3558 | $135K – $3.77M | $1.27M | 5.0% | 1.5x |
| Papa John's | 3291 | $261K – $853K | No Item 19 | 5.0% | -- |
| Popeyes Louisiana Kitchen | 3177 | $505K – $3.92M | No Item 19 | 5.0% | -- |
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