Potbelly Sandwich Shop Franchise Cost, Revenue & Review 2026
- Investment
- $644K – $1.2M
- Disclosed sales
- $1.2M
- gross sales, not profit
- SBA charge-off
- Limited · 12 loans
Data from FDD filing + SBA 7(a) records
Analysis by FranchiseVerdict Research · Methodology
Potbelly Sandwich Shop is a fast-casual franchise serving toasted sandwiches, salads, soups, and hand-dipped shakes. Franchisees run shops managing food prep, counter service, and staffing in a high-volume setting.
FranchiseVerdict summary · 2026
A Potbelly Sandwich Shop franchise requires a total initial investment of $644K – $1.2M, including a $40K franchise fee and an ongoing 6.0% royalty[2]. Per the 2024 FDD, average unit revenue was $1.2M[2]. FranchiseVerdict grade: A (Strongest tier), an editorial assessment, not investment advice. Run a live ROI scan →
Sources, dates and evidence
FDD issued: 2024 filing · Data extracted: · Last cited check: · Staleness risk: high - figures are from a filing two or more years old
Evidence: strong✓ Investment (Item 7)✓ Item 19 status✓ Units and owners (Item 20)✓ SBA loan coverage✓ Litigation (Item 3)✓ Financial statements (Item 21)✓ Franchisor identityhow this is scored8 of 8 headline figures on this page cite a page of the filing.
Overview
- Investment
- $644K – $1.2M
- 84th pct Service Resta…
- Avg gross sales
- $1.2M
- 24th pct Service Resta…
- Royalty
- 6.0%
- 48th pct Service Resta…
- Units
- 424
- 88th pct Service Resta…
- SBA charge-off
- N/A
Quick verdict · Quick-Service Restaurants · color = vs category peers
Green = favorable by >10% vs Quick-Service Restaurants median · No shading = within ±10% · Red = unfavorable by >10% · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
Bottom line
- COSTTotal investment $644K – $1.2M including a $40K franchise fee, 6.0% ongoing royalty.
- RETURNSAverage unit revenue of $1.2M/year (median $1.2M).
- RISKVerdict A (Strongest tier), verdict score 78/100 (higher is better).
- GROWTHPositive: net +34 franchised outlets in the latest year (38 opened, 4 closed) (Item 20).
- GROWTHSystem growing at 71.7% CAGR over 3 years with 424 total units. Strong expansion trajectory.
Item 1 · who you're contracting with
The Franchisor
Corporate structure & franchisor financials
- Legal entity
- Potbelly Franchising, LLC
- Parent company
- Potbelly Illinois, Inc.
- FDD Item 1, page 9 of the 2024 FDD
- Ultimate parent
- Potbelly Corporation
- FDD Item 1, page 9 of the 2024 FDD
- CEO title
- President and Chief Executive Officer
- Robert D. Wright
- Incorporated in
- Illinois
- HQ
- 111 North Canal Street, Suite 325, Chicago, Illinois 60606
- Auditor
- Deloitte & Touche LLP
- Audited financials
- Franchisor revenue
- $4.1M
- vs $3.2M prior year
Affiliated brands
- Potbelly Sandwich Works
Other brands the franchisor or its parent operates (Item 1).
Overview
About
- CEO
- Robert D. Wright
- Headquarters
- IL
- Founded
- 2009
- FDD year
- 2024
- States available
- 22
Can you afford it, and what does the money buy?
Entry cost runs 86% above the typical quick-service restaurants franchise.
Source: FDD 2024 · Items 5–7
Full Item 7 breakdown15 line items
Initial investment breakdown
| Line item | Low | High | |
|---|---|---|---|
| Initial Franchise Fee | $40K | $40K | |
| Rental of Premises (3 months) | $16K | $33K | |
| Construction | $325K | $600K | |
| Leasehold Improvements & Signage | $13K | $56K | |
| Equipment | $97K | $180K | |
| Furniture & Fixtures | $42K | $44K | |
| Technology | $28K | $59K | |
| Training Expenses | $16K | $46K | |
| Insurance (12 months) | $2K | $12K | |
| Professional Fees | $2K | $5K | |
| Business Licenses & Permits | $250 | $2K | |
| Office Equipment & Supplies | $800 | $3K | |
| Market Introduction Program | $25K | $25K | |
| Opening Inventory | $12K | $18K | |
| Additional Funds (3 months) | $25K | $35K | |
| Total initial investment | $644K | $1.2M |
Line items extracted from FDD Item 7. Ranges reflect the franchisor's stated low and high per line. Total is the sum of line-item lows / highs — actual costs may fall outside this range depending on market and build-out scope.
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $644K – $1.2M
- Bottom third — review vs category
- Liquid capital req'd
- $25K – $35K
- Middle of category vs category
- Franchise fee
- $40K – $40K
- Middle of category vs category
- Royalty
- 6.0%
- typical 6–8%
- Ad fund
- 3.0%
- typical 3–5%
- Total fee load
- 9.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 6.0% of gross sales |
| Marketing / ad fund | 3.0% |
| Technology fee | $500 |
| Transfer fee | $20K |
| Renewal fee | $10K |
| Inventory (initial) | $12K – $18K |
| Total fee load | 9.0% of rev |
What do units actually make?
Average unit sales run 25% above the quick-service restaurants norm.
Source: FDD 2024 · Item 19
Single-unit · not modelled
Returns at a glance
An FDD discloses gross sales, not profit, and the operating costs that turn one into the other are in no filing. We publish no modelled return for Potbelly Sandwich Shop until someone supplies them — yours, in the models below.
—
Not modelled yet
An FDD discloses gross sales, not profit. We hold no sourced figure for COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.
Total invested capital · disclosed
$931K
Item 7 initial investment plus working capital, as filed — the one figure here that needs no assumption.
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
What one unit earns on your invested capital
Model A · Single-Unit Return
Computes unlevered return on invested capital (ROIC) for a single franchise unit, read against the 30–60% reference band · Yale SOM, Post-MBA Path Exhibit 2 (2023). Below that band a passive index fund likely outperforms; above it the franchisor has pricing power you're subsidizing.
Note: Item 19 revenue is what the franchisor discloses, and it is the top line only — gross sales are not profit. No FDD discloses the operating costs that turn one into the other, so those fields start empty and nothing is modelled until you supply them from your own lease quote, labor market and build-out budget.
Returns model · single-unit ROIC
What would one Potbelly Sandwich Shop unit return on the cash you put in?
Illustrative category typicals — not sourced to any filing, survey or sample. Replace them with figures from franchisee validation calls before you rely on the output.
Unlevered ROIC · per unit
Your modelled return on total invested capital, before any debt financing.
—
An FDD discloses gross sales, not profit. We hold no sourced figure for COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.
What 25 units return when you use SBA financing
Model B · Return on Equity: Debt-Financed Acquisition
Models a 25-unit portfolio acquisition financed with an SBA 7(a) loan. Shows equity IRR (your return on cash invested), DSCR (how safely the cash flow covers debt service), and the capital stack (SBA + seller + equity breakdown).
This is the “search fund” or “entrepreneurship through acquisition” scenario: you buy an existing multi-unit operator, use leverage to amplify returns, and either operate or hire management. The 25-unit size is the typical minimum for an SBA-backed franchise portfolio acquisition to pencil as a full-time income.
What “return on equity” means here: if you put in $500K of your own cash and the business generates enough EBITDA to pay down debt and grow, your equity IRR is the annual return on that $500K, including the value created when you eventually sell. Target IRR for a search fund is typically 25–35%.
Not modelled yet
An FDD discloses gross sales, not profit. We hold no sourced figure for COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.
A 25-unit return is built on a per-unit EBITDA. Fill in the operating costs in Model A above and this model runs on that figure, or take the whole scenario to the full ROI workbench, where the portfolio and LBO models accept your own per-unit economics directly.
These models are for research and scenario planning only. Not investment advice. Actual results depend on your specific location, management, and market conditions. Consult a franchise attorney and accountant before signing any franchise agreement.
Item 19 · Source: 2024 FDD
Financial Performance
- Avg gross sales
- $1.2M
- Per unit, per year
- Median gross sales
- $1.2M
Gross sales are revenue before expenses — not profit. Actual owner earnings depend on rent, labor, royalties, marketing fees, and debt service.
- Item 19 type
- Average/Median Unit Volume (Gross Sales) by segment, 2021-2023
- Sample size
- 74 outlets
- vs category median 19 · large
- Range (low → high)
- $415K→$2.3MCited, not corroborated — printed on page 66 of the 2024 FDD. Nothing else in our record independently restates or re-derives it.
- Cohort dispersion (min → max)
- Reporting year
- 2023
- Fiscal year the figures cover
- Source filing
- FDD 2024
- Disclosed in the 2024 filing, covering 2023
- Transparency
- 4 / 10
- vs category median 4 / 10 · typical
Compared against 781 Quick-Service Restaurants brands
Operator outlook
What the numbers say
Data-driven interpretation of this brand's financial disclosures, fee structure, and system trajectory.
Unit economics
Average unit generates $1.2M/year in gross sales. Revenue-to-investment ratio: 1.3x.
Fee burden
Total ongoing fee load of 9.0% — above the Quick-Service Restaurants median of 7.5%.
Disclosure
Transparency score 4/10 — this franchisor discloses detailed breakdowns (quartiles, segments, or cohort data). Buyers can model unit economics with higher confidence.
Operator retention
System expanding at 71.7% CAGR over 3 years across 424 units — operators are staying and new ones are joining.
Multi-unit rate
Only 11% of franchisees own multiple units. Could indicate challenging economics or a young system where operators haven't had time to expand.
Source: FDD Item 19 financial performance representations and publicly filed FDD data. Past performance is not indicative of future results. Verify all figures with the franchisor and current franchisees before making any investment decision.
vs Quick-Service Restaurants medians
How Potbelly Sandwich Shop Compares
Category median of published Quick-Service Restaurants brands that report the figure; the middle half spans the 25th to 75th percentile and n counts the brands behind it. Medians are used because a few very large systems pull an average far from the typical brand. Revenue is disclosed gross sales, not profit.
Is the system healthy?
Source: FDD 2024 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 424
- Opened
- 38
- Last reporting year
- Closed
- 4
- Terminated
- 4
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 0
- Term expired, not renewed (per Item 20)
- Turnover rate
- 0.9%
- Company-owned
- 345
- Corporate units in the system
- % franchised
- 19%
- vs corporate-owned
- Multi-unit owners
- 11.1%
- Net growth (3-yr)
- +71.7%
- Net unit change over 3 years
- 3-yr CAGR
- +71.7%
- Compounded over last 3 years
Last fiscal year · Item 20 exits and transfers
- Terminated
- 4
- Not renewed
- 0
- Transferred
- 0
- Reacquired
- 0
- Franchisor bought back
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 22 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 contact records (FDD Item 20). Shows states with at least one current operator on file. Full state registration data (Item 12) will appear on a future FDD refresh.
Available to sell in · Item 12
- California
- Illinois
- Indiana
- Michigan
- South Dakota
- Wisconsin
States where the franchisor is registered to sell new franchises (FDD registration filings).
Where the owners are · Item 20 owner list
79 current owners across 22 states.
- MD 12
- NY 9
- WA 9
- NC 7
- TX 5
- VA 5
- OH 4
- FL 3
- IA 3
- IL 3
- KY 3
- MO 3
- +10 more states
Counts only, from the list the franchisor prints in Item 20. Names and phone numbers are for your own due diligence and are not shown here.
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA 7(a) and 504 loan disclosures, public data unique to FranchiseVerdict.
- Total loans
- 12
- Loan volume
- $7.8M
- Median loan
- $770K
- 50th percentile
- Charge-off rate
- Limited · 12 loans
- Limited SBA coverage: 12 loans, rate hidden until 10 have resolved and loans reach 2% of franchised units
Historical SBA 7(a) lending data, not predictive of future performance. How SBA charge-off rates are calculated
- Repayment rate (PIF)
- Limited · 12 loans
- 5-yr charge-off
- Limited · 12 loans
- Loans approved 2021+
- Active lenders
- 5
- Defaults
- 0
- Typical loan rate
- 9.2%
- avg rate to borrowers
- Franchised industry avg
- 10.8%
- n=12,827 loans
- Jobs supported
- 221
- 2.8 per loan
- Lender concentration
- 58%
- top lender's share
Borrower mix: 92% went to startups / new businesses, 8% to established operators
Franchise vs independent — in limited-service restaurants, franchised businesses charge off at 10.8% vs 10.0% for independents — franchising is associated with 8% higher SBA default risk in this category.
Top lenders financing Potbelly Sandwich Shop franchisees
Showing 3 of 5 lenders. The full breakdown — every lender, state distribution, interest rates & risk ratings — is in the SBA Lending Report below.
Explore lender portfolios on Bank Reports or regional data on State Reports.
Lender network · 7(a) + 504
SBA Lending Report
Full lending analysis for Potbelly Sandwich Shop from SBA 7(a) FOIA data.
- Principal loss rate
- 0.0%
- Avg SBA guarantee
- 69%
- Avg interest rate
- 9.21%
- Lender concentration
- 58.3%
- Job velocity
- 2.8 per $100K
- NAICS benchmark
- 8.7%
- NAICS 722513
- Jobs supported
- 221
Top SBA lendersTop lender holds 58% of loans
| # | Lender | Loans | Volume | Default % |
|---|---|---|---|---|
| 1 | The Huntington National Bank | 7 | $3.8M | N/A |
| 2 | The Fidelity Bank | 2 | $1.3M | N/A |
| 3 | Cogent Bank | 1 | $998K | N/A |
| 4 | Truist Bank | 1 | $638K | N/A |
| 5 | HomeTrust Bank | 1 | $1.1M | N/A |
Geographic failure vector
| State | Loans | Defaults | Rate |
|---|---|---|---|
| TXTexas | 5 | 0 | -- |
| NCNorth Carolina | 4 | 0 | -- |
| VAVirginia | 2 | 0 | -- |
| FLFlorida | 1 | 0 | -- |
SBA 7(a) lending trend
Borrower profile
Source: SBA 7(a) + 504 FOIA loan-level data, matched by FranchiseVerdict
What could kill this investment?
Source: SBA 7(a) FOIA · FDD Items 3, 21
Risk analysis
FranchiseVerdict rating + FDD Items 3, 4, 8, 16, 21
Risk & Legal
Clean: no litigation, no bankruptcy, no going-concern. Positive net worth $7,629,000 and net income $2,217,000, audited with Item 19 disclosed. Strong +71.7% unit growth to 424 units.
Litigation (Item 3)
Subject: officers or affiliates. The franchisor is not a named party in these cases.
No litigation required to be disclosed in Item 3
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Deloitte & Touche LLP
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Supplier relationship · Items 8 & 16
- Franchisor sells you products: Yes
- Kickbacks from required suppliers: Yes
- Must buy proprietary products: Yes
- Restricted to system-approved products: Yes
- Can negotiate own supplier terms: No
Score breakdown · what drove the 78 / 100 verdict
- 01MINORZero litigation, no bankruptcy
- 02MINORNet worth $7.63M, net income $2.22M
- 03MEDAudited, Item 19 disclosed
- 04MINOR+71.7% unit growth
Severity inferred from the FDD text · not a regulatory classification
What are you signing up for?
Ongoing fees run about 9.0% of sales (royalty + ad fund), before rent and labor.
Source: FDD 2024 · Items 11, 12, 17
FDD Items 12, 15, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 10 years |
|---|---|
| Renewal term | 5 years |
| Allowed renewalsℹ | 2 |
| Territory type | No territory protection |
| Protected territory | No |
| Exclusive territoryℹ | No |
| Online sales rightsℹ | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Required |
| Non-compete (years)ℹ | 2 years |
| Non-compete (miles)ℹ | 7 mi |
| Right of first refusalℹ | Yes |
| Transfer requires consent | Yes |
| Termination notice | 30 days |
| Termination groundsℹ | 2 |
| Curable defaultsℹ | 3 |
| Mandatory arbitration | Yes |
| Arbitration location | Chicago, Illinois |
| Jury trial waiver | Yes |
| Governing law | Illinois |
| Litigation count | 0 |
View Item 3 litigation summary
No litigation required to be disclosed in Item 3
Items 10, 11
Training & Operations
- Classroom training
- 4 hrs
- On-the-job training
- 294 hrs
- Training location
- at the shop
- Ongoing training
- Required
- Field support
- 68 hrs/yr
- On-site visits per year
- Site selection
- joint
- Franchisor financing
- Not offered
- Item 10
- POS system
- NCR / Aloha POS
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: NCR / Aloha POS
Item 20 · call current owners
Franchisee Contacts
79 owners to call
Name · phone · city · state. Extracted from FDD Item 20
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Potbelly Sandwich Shop franchise?
The total investment to open a Potbelly Sandwich Shop franchise ranges from $644K – $1.2M, with an initial franchise fee of $40K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do Potbelly Sandwich Shop franchise owners earn?
According to Item 19 of the Potbelly Sandwich Shop FDD, the average gross sales per unit is $1.2M. The median is $1.2M. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
Who owns Potbelly Sandwich Shop?
Potbelly Sandwich Shop is franchised by Potbelly Franchising, LLC. Its parent company is Potbelly Illinois, Inc.. The ultimate parent named in the FDD is Potbelly Corporation. Source: FDD Item 1, 2024 filing.
What is Item 19 in the Potbelly Sandwich Shop FDD?
The FDD section where a franchisor may disclose financial performance of its outlets. Disclosure is optional and formats vary; figures are typically gross sales, which is revenue before expenses, not profit. FranchiseVerdict extracts these figures directly from the Potbelly Sandwich Shop FDD and qualifies whose outlets they describe.
What is Potbelly Sandwich Shop's franchise failure rate?
SBA 7(a) loan charge-off data is not available for Potbelly Sandwich Shop (fewer than 10 loans on file). Charge-off rates are one way to gauge franchise risk, but not all franchise loans go through the SBA program. We recommend reviewing turnover and closure data in the FDD and speaking with current franchisees.
How many Potbelly Sandwich Shop franchise locations are there?
As of their most recent FDD filing, Potbelly Sandwich Shop has 424 total units in the United States, including 79 franchised units and 345 company-owned units. 38 new units were opened in the latest reporting year.
Is Potbelly Sandwich Shop a good franchise to buy?
FranchiseVerdict rates Potbelly Sandwich Shop as a A-grade franchise with a verdict score of 78 out of 100 (higher is better). The grade is a deterministic score built from six weighted dimensions — financial health, unit economics, unit growth, scale, legal, and transparency — then calibrated against SBA loan charge-off rates and FDD age. Transparency is one of the six, so a filing that discloses less scores lower on that dimension than one that discloses more. Our rating is based solely on publicly available FDD and government data; we recommend speaking with current franchisees before making any investment decision. This is not investment advice.
Data sourced from public FDD filings and SBA 7(a) FOIA records. Not financial advice.
For franchisors
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Data extracted from public FDD filings and SBA 7(a) loan disclosures (FOIA). This information is provided for research purposes only and does not constitute financial, legal, or investment advice. Verify all figures with the franchisor's current Franchise Disclosure Document before making any investment decision.