Potbelly Sandwich

Potbelly Sandwich Franchise FDD, Costs & Fees (2025)

Potbelly Sandwich Shop is a fast-casual restaurant franchise known for its toasted sandwiches, soups, and salads. It emphasizes a warm, neighborhood atmosphere and uses high-quality ingredients to deliver comfort food.

Potbelly Sandwich Shop is a beloved American fast-casual franchise known for its warm, toasted sandwiches and inviting atmosphere. Founded in 1997 by Peter Hastings in Chicago's Lincoln Park neighborhood, Potbelly began as an antique store where Hastings served sandwiches to customers.

The name "Potbelly" pays homage to the potbelly stove that warmed the original shop. The company is headquartered at 111 North Canal Street, Chicago, Illinois, and has grown to over 425 locations nationwide.

In 1996, entrepreneur Bryant Keil acquired Potbelly, sparking a period of rapid growth. The company began franchising in 2009, allowing business owners to bring Potbelly's unique offerings to their local communities.

The franchise serves toasted sandwiches, fresh salads, soups, hand-dipped shakes, and baked goods. Each location is designed to reflect the character of the neighborhood, creating a cozy and welcoming environment.

Initial investment

Here's what you would need to invest if you were to start this franchise. These costs are provided by the franchisor in the Franchise Disclosure Document.

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
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

Franchise Disclosure Document

Number of units

Training

Potbelly Sandwich Shop provides a comprehensive training program for franchisees to ensure consistent quality and brand standards across locations. The training is mandatory and must be completed before opening the shop. The programs include:

  1. Operator & General Manager Training Program: This includes a structured training schedule conducted after the Franchise Agreement is signed and during the shop development period. It is designed to be completed at least six weeks before the shop's opening and involves both classroom and on-the-job training components. The schedule is coordinated approximately 2–3 months before the anticipated opening date.
  2. Associate Training: This program consists of 45 hours of on-the-job training at a designated training shop. There is no classroom component for this training.
  3. Certified Trainer/Shift Leader Training: This segment requires 60 hours of on-the-job training at a certified training location, with no classroom time included.
  4. Owner Training Course: The Managing Owner must attend a 4-day owner training course in addition to the broader 6-week training program. This course focuses on the operational philosophy, system standards, and core operational skills of a Potbelly Shop.

Territory Protection

Potbelly Sandwich Shop does not offer exclusive or protected territory rights to its franchisees under the standard Franchise Agreement. Franchisees operate their shop at a specific site approved by Potbelly, but this does not come with any exclusivity in that geographic area.

Potbelly and its affiliates retain the right to operate or authorize other Potbelly locations, or use other distribution channels—including online and retail sales—even in proximity to existing franchises.

Furthermore, the agreement clearly states that the franchisor does not provide any territorial rights such as expansion, non-encroachment, or first refusal unless explicitly outlined in a separate Shop Development Area Agreement.

Competitors

Below are some of

Potbelly Sandwich

key competitors in the

Sandwich

sector.

Franchise
Franchisees
Initial fee
Total investment
Revenue
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Gross Profit
Upgrade
EBITDA
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95

New
+
111%
111%

$40,000

$654,000

$1,274,000

n.a.

$1,299,000

$xxx,xxx

n.a.

xx%

n.a.

n.a.

xx%

n.a.

Competitors

D'Angelo Grilled Sandwiches

D'Angelo Grilled Sandwiches is a fast-casual sandwich franchise offering grilled subs, soups, salads and coffee, serving lunch and dinner crowds, and known for flame-roasted flavour, fresh ingredients and community-based franchise experience.

Franchisees

?

22
+
-12%
-12%
Investment

?

$411,000 - $737,000

Submarina California Subs

Submarina California Subs is a submarine-sandwich franchise offering crafted subs with fresh, quality ingredients, serving take-out and delivery customers, and known for California-style flavor, strong franchise support, and award-winning menu.

Franchisees

?

10
+
-9%
-9%
Investment

?

$183,000 - $370,000

Erik's Delicafe

Erik's DeliCafe is a sandwich and soup franchise offering handcrafted sandwiches, slow-simmered soups, salads, and bakery items, serving lunch crowds and families, and known for wholesome ingredients, comforting recipes, and neighborhood hospitality.

Franchisees

?

26
+
0%
0%
Investment

?

$199,000 - $407,000

Lennys Grill & Subs

Lennys Grill & Subs is a fast-casual franchise offering grilled sandwiches, subs, salads, and soups, serving lunch and dinner crowds, and known for freshly prepared items, quality ingredients, and strong local presence.

Franchisees

?

58
+
4%
4%
Investment

?

$283,000 - $577,000

Cheesy Street Grill

Cheesy Street Grill is a fast-casual franchise offering grilled cheese sandwiches, comfort foods, and quick-service menu options, serving lunch and dinner diners, and known for inventive cheese creations, approachable pricing, and brand personality.

Franchisees

?

2
+
0%
0%
Investment

?

$267,000 - $426,000

Crepe Delicious

Crepe Delicious is a café franchise offering sweet and savory crepes, waffles, smoothies, and coffee, serving breakfast and lunch customers, and known for fresh ingredients, customizable menu, and café experience in retail venues.

Franchisees

?

8
+
14%
14%
Investment

?

$178,000 - $978,000