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Potbelly Sandwich Shop

Potbelly Sandwich Shop

Potbelly Sandwich Shop franchises enable operators to run quick-service restaurants that sell sandwiches, soups, salads, shakes, desserts, and other food and beverage products prepared according to specific recipes, standards, and using proprietary and branded ingredients. The business model involves granting franchises for individual shops or multi-unit development areas, requiring franchisees to follow strict operational procedures, purchase assets from affiliates, and compete in a crowded market of sandwich shops, quick-serve restaurants, and convenience stores. They target the general public seeking high-quality, freshly-prepared fast-casual food in a distinctive atmosphere.

Since 2009Food & BeverageChicago, ILHero Franchising Inc.www.potbelly.com
Item 19 AvailableSBA Loan Data

Disclaimer: This information was extracted using AI from public Franchise Disclosure Documents and should be independently verified. This is not financial or legal advice. Always review official FDD filings before making investment decisions.

Overview

Investment
$654,019 - $1,274,099
Franchise Fee
$40,000
Locations
95

Financial Requirements

Franchise Fee$40,000
Initial Investment Range$654,019 - $1,274,099
Royalty Rate6.00%
Brand Fund3.00%
Fixed Monthly Fees$1,061 - $1,061

6% royalty + 3% brand fund + $1,061/mo technology fee

Franchise Stats

Franchise Locations95
Corporate Locations346
States Operating25
Franchising Since2009
FDD Year2025

Financial Performance

Item 19 Financial Performance

Average Gross Revenue
$1,367,424.79
Median Gross Revenue
$1,161,729
Top Quartile Revenue
$1,740,311
Bottom Quartile Revenue
$839,277

Data Based On: 73 franchised traditional Potbelly Shops and 5 franchised non-traditional Potbelly Shops open for the entire 12-period timeframe in 2024.

* Weighted average gross revenue calculated from 73 traditional franchised units (average $1,227,247.51) and 5 non-traditional franchised units (average $3,414,013): (73 * $1,227,247.51 + 5 * $3,414,013) / (73 + 5) = $1,367,424.79. Median gross revenue is the stated median for traditional franchised units (1,161,729). Revenue top quartile is the average from the top performing segment (>$1500K) of traditional franchised units (1,740,311). Revenue bottom quartile is the average from the lowest performing non-zero segment ($500K-$1000K) of traditional franchised units (839,277). No profit, net income, or EBITDA data were provided for franchised units.

Extracted Item 19 Section

How Potbelly Sandwich Shop Compares to Other Fast Casual Franchises

Key Insights

  • Higher than average SBA loan default rate in Fast Casual
FranchiseInvestment RangeFranchise FeeRoyaltyLocations
Potbelly Sandwich Shop
Current
$654K - $1.3M$40K6.0%95
Tropical Smoothie Cafe$300K - $721K$35K6.0%1,371
TROPICAL SMOOTHIE CAFÉ$300K - $721K$35K6.0%1,371
FIREHOUSE SUBS RESTAURANTS (UNIT)$379K - $1.4M$20K6.0%1,248
Zaxby's$1.4M - $3.8M$35K6.0%826
Qdoba$548K - $1.3M$40K5.0%652
Fast Casual Average
107 franchises
$532K - $1.2M$39K5.6%-

* Comparison based on latest FDD filings. Investment ranges from Item 7, fees from Item 5. Showing top 5 of 107 Fast Casual franchises by location count.

Locations & Growth

Outlet Growth Over Time

Total outlets at end of each year

Geographic Distribution (2024)

Outlets by state across the United States

Top States by Outlet Count
1MD
13
2NY
11
3NC
11
4FL
10
5WA
9
6TX
6
7VA
5
8IL
4
9OH
4
10KY
3
11AR
3
12MO
3
13IA
3
14MN
2
15NE
1

+9 more states

SBA Loan History

Historical SBA 7(a) loan data for Potbelly Sandwich Shop franchisees (2014 - 2025)

Total Loans
29
Average Loan Amount
$569,703
Total Loan Volume
$16,521,400
Default Rate
0.0%

Loans by Year

* Data sourced from SBA 7(a) FOIA loan records. Default rate calculated from charged-off loans.

Franchisee Contacts

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Due Diligence

Litigation (Item 3)

Franchisee Litigation Cases0

No litigation involving franchisees reported in the FDD.

Bankruptcy (Item 4)

Bankruptcy HistoryNo

No bankruptcy history reported in the FDD.

System Health (Item 20)

Franchise system changes reported in the most recent fiscal year

Terminations
2
Non-Renewals
0
Reacquired by Franchisor
0
Ceased Operations (Other)
0
System Transfers
0
Sold to Franchisees
1
Projected New Franchises
26

Frequently Asked Questions

How much does it cost to open a Potbelly Sandwich Shop franchise?

The total initial investment to open a Potbelly Sandwich Shop franchise ranges from $654,019 to $1,274,099. This includes a franchise fee of $40,000. Ongoing royalty fees are 6.0% of gross sales.

How much revenue does a Potbelly Sandwich Shop franchise make?

According to the 2025 FDD, the average gross revenue for a Potbelly Sandwich Shop franchise is $1,367,424.79. The median revenue is $1,161,729.

How many Potbelly Sandwich Shop franchise locations are there?

As of the 2025 FDD, Potbelly Sandwich Shop has 95 franchise locations. The company has been franchising since 2009.

Can you get an SBA loan for a Potbelly Sandwich Shop franchise?

Yes, SBA loans are available for Potbelly Sandwich Shop franchises. Historical data shows 29 SBA 7(a) loans have been approved for Potbelly Sandwich Shop franchisees, with an average loan amount of $569,703. The historical default rate is 0.0%.

Is Potbelly Sandwich Shop a good franchise to buy?

Potbelly Sandwich Shop shows several positive indicators: transparent financial performance data (Item 19), low SBA loan default rate. However, franchise success depends on many factors including location, local market conditions, and owner involvement. We recommend speaking with existing franchisees and consulting with a franchise attorney before making a decision.

Interested in Potbelly Sandwich Shop?

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