Potbelly Sandwich ShopFranchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
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]. SBA 7(a) loans show a 0.0% charge-off rate across 12 loans[1]. Verdict grade: A. Run a live ROI scan →
Data last verified June 18, 2026 · figures per the 2024 FDD issuance
Overview
- Investment
- $644K – $1.2M
- 38th pct Service Resta…
- Avg gross sales
- $1.2M
- 13th pct Service Resta…
- Royalty
- 6.0%
- 26th pct Service Resta…
- Units
- 424
- 47th pct Service Resta…
- SBA default
- 0.0%
- system-wide median varies by category
Quick verdict · Full-Service Restaurants · color = vs category peers
Green = >15% above Full-Service Restaurants avg · No shading = within ±15% · Red = >15% below avg · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
Only 0.0% of 12 SBA loans charged off, well below the 16% franchise average.
Franchised units fell from 95 to 45 over 3 years. Investigate why operators are leaving.
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).
- Verdict A (Top Quintile) with a risk score of 47/100. SBA loan charge-off rate of 0.0% across 12 loans (well below the franchise average, based on all SBA 7(a) franchise lending, 2010–2024).
- Bankruptcy history disclosed in the FDD. Review Item 4 for details before proceeding.
Item 1 · who you're contracting with
The Franchisor
- Legal entity
- Potbelly Franchising, LLC
- Parent company
- Potbelly Corporation
- Incorporated in
- IL
- HQ
- 111 North Canal Street, Suite 325, Chicago, Illinois 60606
- Auditor
- Deloitte & Touche LLP
- Audited financials
- Franchisor revenue
- $3.2M
- vs $4.1M prior year
Affiliated brands
- Potbelly Sandwich Works
Other brands the franchisor or its parent operates (Item 1).
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.
- CEO
- Robert D. Wright
- Headquarters
- IL
- Founded
- 2009
- FDD year
- 2024
- States available
- 22
FDD Item 7 · 2024 filing · 15 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.
Single-unit · estimated
Returns at a glance
Indicative numbers using FDD Item 7 / Item 19 inputs and category-benchmarked cost ratios. Full single-unit, 25-unit portfolio, and LBO models (with every input editable to stress-test your own scenario) live on the financials page.
Store EBITDA · annual
$109K
9.0% margin
Unlevered ROIC
12%
EBITDA / total invested capital
Payback
8.5 yrs
cash-on-cash, unlevered
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $644K – $1.2M
- Better than avg vs category
- Liquid capital req'd
- $25K – $35K
- Better than avg vs category
- Franchise fee
- $40K – $40K
- Better than avg vs category
- Royalty
- 6.0%
- Gross Sales · 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% of gross sales |
| Technology fee | $500 |
| Transfer fee | $20K |
| Renewal fee | $10K |
| Inventory (initial) | $12K – $18K |
| Total fee load | 9.0% of rev |
Financial Performance
- Avg gross sales
- $1.2M
- Per unit, per year
- Median gross sales
- $1.2M
- Item 19 type
- gross_sales
- Sample size
- 74 units
- vs category median 13 · large
- Range (low → high)
- $415K→$2.3M
- Cohort dispersion (min → max)
- Transparency tier
- revenue_only
- Categorical assessment of disclosure depth
- Transparency
- 4 / 5
- vs category median 4 / 5 · typical
Compared against 1264 Full-Service Restaurants brands
vs Full-Service Restaurants averages
How Potbelly Sandwich Shop Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 424
- Opened
- 38
- Last reporting year
- Closed
- 4
- Turnover rate
- 0.9%
- Company-owned
- 345
- Corporate units in the system
- % franchised
- 19%
- vs corporate-owned
- Multi-unit owners
- 11.1%
- Net growth (yr3)
- +75.6%
- Net unit change last year
- 3-yr CAGR
- +71.7%
- Compounded over last 3 years
3-year detail · Item 20
- Transfers (3yr)
- 0
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 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).
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
- 0.0%
- rates vary by category · see methodology
Historical SBA 7(a) lending data, not predictive of future performance. How SBA charge-off rates are calculated
- Repayment rate (PIF)
- N/A
- 5-yr charge-off
- N/A
- Loans approved 2021+
- Active lenders
- 5
- Defaults
- 0
Explore lender portfolios on Bank Reports or regional data on State Reports.
Premium insight
SBA Lending Report
Deep-dive into Potbelly Sandwich Shop's SBA lending history: lender network, geographic footprint, interest rates, and more.
SBA Lending Report
- Principal loss rate and NAICS industry benchmark
- 5 lenders with concentration factor
- Per-state charge-off rates across 4 states
- Startup risk premium and job creation velocity
- 2-year lending trend
Instant access. No subscription.
With a 0.0% charge-off rate across 12 loans, banks have historically viewed this brand favorably for lending.
Risk analysis
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.
Litigation (Item 3)
0 case reference(s): 0 pending, 0 settled.
Bankruptcy (Item 4)
Disclosed in last 7 years
Bankruptcy Code; (b) obtained a discharge of its debts under the bankruptcy Code; or :(c) was a principal officer Of a company or a general partner in a partnership that either filed as a debtor (or has filed against it) a petition to start an action under the U.S. Bankruptcy Code or that obtained a
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
- Must buy proprietary products: Yes
- Restricted to system-approved products: Yes
Score breakdown · what drove the 47 / 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
| Initial term | 10 years |
|---|---|
| Renewal term | 5 years |
| Allowed renewalsℹ | 2 |
| Territory type | none |
| Protected territory | No |
| Online sales rightsℹ | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Required |
| Non-compete (years)ℹ | 2 years |
| Right of first refusalℹ | Yes |
| Termination notice | 30 days |
| Termination groundsℹ | 2 |
| Curable defaultsℹ | 3 |
| Mandatory arbitration | Yes |
| Jury trial waiver | Yes |
| Governing law | Illinois |
| Litigation count | 0 |
View Item 3 litigation summary
0 case reference(s): 0 pending, 0 settled.
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
- POS system
- NCR / Aloha POS
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: NCR / Aloha POS
Item 20 · call current owners
Franchisee Contacts
80 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
Potbelly Sandwich Shop · FDD (2024) PDF
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.
What is Potbelly Sandwich Shop's franchise failure rate?
Based on SBA 7(a) loan data, Potbelly Sandwich Shop has a charge-off rate of 0.0% across 12 loans, meaning 0.0% of franchise loans were charged off. Charge-off rates are one proxy for franchise risk, though they do not capture all closures. This data comes from FOIA-sourced SBA lending records.
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 95 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 risk score of 47 out of 100, based on our analysis of investment costs, revenue data, SBA loan performance, and growth trends. 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.
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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.