Potbelly Sandwich Franchise FDD, Profits & Costs (2025)
Potbelly Sandwich Shop is a popular fast-casual restaurant brand in the U.S., best known for its toasted sandwiches and friendly, neighborhood feel. The concept originated in 1977 in Chicago’s Lincoln Park area, where founder Peter Hastings started by offering sandwiches inside his antique store.
The brand’s name was inspired by the potbelly stove that provided warmth in that first shop. Today, the company operates from its headquarters at 111 North Canal Street in Chicago and boasts a presence of more than 425 locations across the country.
A major turning point came in 1996 when entrepreneur Bryant Keil purchased the business, fueling significant expansion. In 2009, Potbelly launched its franchise program, giving entrepreneurs the chance to introduce the brand’s signature experience to new markets.
Potbelly’s menu features a range of toasted subs, fresh salads, hearty soups, hand-crafted shakes, and baked treats. Each store is designed to blend in with its neighborhood surroundings, offering customers a cozy and personalized dining atmosphere.
Initial Investment
How much does it cost to start a Potbelly Sandwich franchise? It costs on average between $654,000 – $1,274,000 to start a Potbelly Sandwich franchised restaurant.
This includes costs for construction, equipment, inventory, and initial operating expenses. The exact amount depends on various factors, including the type of restaurant you choose, the location, and whether the franchisee chooses to lease or purchase the property.
| Type of Expenditure | Amount |
|---|---|
| Initial Franchise Fee | $20,000 – $40,000 |
| Rental of Premises (3 months) | $17,400 – $27,549 |
| Architectural Fees | $13,500 – $57,560 |
| Construction | $450,000 – $570,000 |
| Signage | $3,526 – $75,000 |
| Furniture, Fixtures & Equipment | $97,000 – $180,085 |
| Smallwares | $11,000 – $45,000 |
| Technology | $8,000 – $54,665 |
| Training Expenses | $4,000 – $50,000 |
| Insurance (12 months) | $4,000 – $9,240 |
| Professional Fees | $10,000 – $20,000 |
| Business Licenses & Permits | $795 – $5,000 |
| Office Equipment & Supplies | $1,000 – $5,000 |
| Market Introduction Program | $10,000 – $15,000 |
| Opening Inventory | $3,698 – $20,000 |
| Additional Funds (3 months) | $100 – $100,000 |
| Total | $654,019 – $1,274,099 |
Average Revenue (AUV)
How much revenue can you make with a Potbelly Sandwich franchise? A Potbelly Sandwich franchised restaurant makes on average $1,299,000 in revenue (AUV) per year.
Here is the extract from the Franchise Disclosure Document:
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Frequently Asked Questions
How many Potbelly Sandwich locations are there?
As of the latest available data, Potbelly Sandwich Shop operates approximately 441 locations across the United States. The brand has historically maintained a majority of company-owned units, but in recent years has shifted toward a franchise-heavy model.
What is the total investment required to open a Potbelly Sandwich franchise?
The total investment required to open a Potbelly Sandwich franchise ranges from $654,000 to $1,274,000.
What are the ongoing fees for a Potbelly Sandwich franchise?
Potbelly Sandwich franchisees are required to pay a royalty fee of 6% of gross sales. In addition to the royalty, franchisees must contribute 3% to 4% of gross sales to a national marketing and advertising fund. These ongoing fees support the brand’s operational support and marketing efforts across all franchise locations.
What are the financial requirements to become a Potbelly Sandwich franchisee?
Potbelly Sandwich requires aspiring franchisees to meet the following financial thresholds:
Prospective owners must have a minimum net worth of $1,000,000, and at least $500,000 in liquid capital available to invest. These figures are typically validated through review of personal financial statements during the application process.
How much can a Potbelly Sandwich franchise owner expect to earn?
The average gross sales for a Potbelly Sandwich franchise are approximately $1.3 million per location. Assuming a 15% operating profit margin, $1.3 million yearly revenue can result in $195,000 EBITDA annually.
Who owns Potbelly Sandwich?
The Potbelly Sandwich franchise is owned by Potbelly Corporation, a publicly traded company headquartered in Chicago.
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