Potbelly Sandwich Shop
Bottom line
- Total investment $644K – $1.2M including a $40K franchise fee, 6.0% ongoing royalty.
- Average unit revenue of $1.2M/year (median $1.2M).
- Rated STRONG with a risk score of 51/100. SBA loan default rate of 0.0% across 43 loans (below the industry average).
- System growing at 71.7% CAGR over 3 years with 424 total units — strong expansion trajectory.
Item 1 · who you're contracting with
The Franchisor
Yale framework · single-unit ROIC
Returns Analysis
Pulls Item 7 (investment) and Item 19 (revenue) from this brand's FDD into the Yale unlevered-ROIC formula. Override any input to stress-test it against your own assumptions.
The model · Yale framework
What would one Potbelly Sandwich Shop unit return on the cash you put in?
Unlevered ROIC · per unit
18%
Below typical band (30–60%)
Levered LBO scenario · Yale Crease Capital framing
What would 25 Potbelly Sandwich Shop units return on equity?
Equity IRR · 5-yr
49.9%
7.57× MOIC
Year-1 DSCR
1.88×
EBITDA ÷ debt service
Equity required
$1.7M
on $8.5M purchase
Total debt
$6.8M
SBA $4.3M + senior + seller note
Overview
About
Franchisees operate fast-casual sandwich shops selling customizable hot and cold sandwiches, salads, and sides. Daily operations include staff management, food prep/quality control, customer service, inventory ordering, and local marketing in a high-volume QSR environment.
Item 7 · what it costs
The Vitals
Item 19
Financial Performance
Item 20 · unit dynamics
The Growth Chart
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 23 states with active franchisees
The Territory Map
Derived from franchisee contact records. Shows states with at least one current operator — not where the franchisor is registered to sell new units (that data is re-extracting in a future refresh).
States derived from franchisee phone area codes (Item 20). Approximate — ported numbers may show the original state, not the franchisee's current location.
Government records
SBA Loan Data
Aggregated from SBA 7(a) loan disclosures, public data unique to FranchiseVerdict.
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
Potbelly presents elevated risk due to dramatic unit contraction, missing profitability data, and unprotected territories, requiring aggressive due diligence before committing $643K–$1.16M.
Score breakdown · what drove the 51 / 100 rating
- 01MEDNo average net income disclosed in Item 19 — impossible to assess actual profitability or ROI
- 02MED75.6% YoY unit decline suggests significant franchisee struggles or closures despite $1.2M avg revenue
- 03MINORUnprotected territory creates direct competition risk; multiple Potbelly shops could cannibalize sales
- 04MEDHigh investment range ($643.5K–$1.16M) against undisclosed net income creates uncertainty on payback period
- 05MINOR6% royalty on gross sales (not net) means franchisee pays royalty even in loss-making months
Severity inferred from the FDD text · not a regulatory classification
FDD Items 5, 6, 12, 17 · continued from Risk & Legal
Contract & Territory Detail
Item 11
Training & Operations
Item 20
Franchisee Contacts
Phone numbers extracted directly from this brand's FDD Item 20. After purchase, you'll also receive a list of validation questions tailored to this brand.
Franchisee contacts
80 numbers
One-time purchase · CSV download · Validation questions included
FDD download
Potbelly Sandwich Shop · FDD (2024) PDF