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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.
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Franchise Costs
6% royalty + 3% brand fund + $1,061/mo technology fee
Financial Performance
Item 19 Financial Performance
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
Avg. Revenue: $1,367,425
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Unlock financial performance dataPotbelly Sandwich Shop Franchise Analysis
Amid the sandwich shop frenzy, Potbelly's latest FDD drops a bombshell in Item 19 that flips the script on fast-casual earnings potential. With a franchise network dwarfed by corporate stores and SBA loans lighting up the ledger, this Chicago-born brand teases aggressive expansion plans. But can its revenue punch carry a $1M+ investment in a market stuffed with rivals?
Item 7 lays out the steep entry: $654,019 to $1,274,099 total investment, kicked off by a $40,000 franchise fee (Item 5). Ongoing bites include 6% royalty, 3% brand fund, and a $1,061 monthly technology fee (Item 6). Item 19 shines brightest, disclosing average gross revenue of $1,367,425 and median $1,161,729 across franchised units—lofty figures suggesting strong same-store sales in high-traffic spots. Subtract fees and costs, and EBITDA could hover 15-20% for top performers, but median lags hint at location sensitivity.
System health mixes promise and caution: franchise locations jumped 20% from 79 in 2023 to 95 in 2024, with 26 projected new units signaling franchisor push via Hero Franchising. Just 2 terminations reflect stability, bolstered by 29 SBA loans averaging $569,703—evidence banks bet big. Yet 346 corporate outlets dominate, pressuring franchisees in select markets. For deep-pocketed operators eyeing multi-unit, the math tempts; solo buyers face execution risks in this crowded field.
Analysis based on the 2025 Franchise Disclosure Document. All figures should be independently verified before making investment decisions.
How Potbelly Sandwich Shop Compares
Key Insights
- Higher than average SBA loan default rate in Fast Casual
| Franchise | Investment | Fee | Royalty | Locations |
|---|---|---|---|---|
Potbelly Sandwich Shop Current | $654K – $1.3M | $40K | 6.0% | 95 |
| Tropical Smoothie Cafe | $276K – $771K | $35K | 6.0% | 1,650 |
| TROPICAL SMOOTHIE CAFÉ | $300K – $721K | $35K | 6.0% | 1,371 |
| FIREHOUSE SUBS RESTAURANTS (UNIT) | $405K – $1.6M | $20K | 6.0% | 1,249 |
| Zaxby's | $1.4M – $3.8M | $35K | 6.0% | 826 |
| Qdoba | $548K – $1.3M | $40K | 5.0% | 652 |
Fast Casual Average 107 franchises | $529K – $1.2M | $39K | 5.6% | – |
* 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
+9 more states
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Unlock location growth dataSBA Loan History
Historical SBA 7(a) loan data for Potbelly Sandwich Shop franchisees (2014 – 2025)
Loans by Year
SBA 7(a) loan activity over time
* Data sourced from SBA 7(a) FOIA loan records. Default rate calculated from charged-off loans.
29 SBA loans on record
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Unlock SBA loan historyFranchisee Contacts
153 franchisee contacts on file from official FDD filings.
153 Contacts Available
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Unlock contactsDue Diligence
Litigation (Item 3)
Bankruptcy (Item 4)
System Health (Item 20)
Franchise system changes reported in the most recent fiscal year
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Unlock due diligence reportsFrequently Asked Questions
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.
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