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.
KEY FRANCHISE STATS
Franchisees
?
95
+
111%
111%
Franchise fee
?
$40,000
Investment
?
$654,000 - $1,274,000
Revenue (AUV)
?
Undisclosed
$1,299,000
+
22.3%
22.3%
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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
The initial investment required for a Potbelly Sandwich franchise is $654,000 - $1,274,000. That is the total cost you would need to finance 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
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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
Below is Potbelly Sandwich's 2025 Franchise Disclosure Document. Upgrade to Pro or purchase the FDD to view and download the document.
Number of units
Potbelly Sandwich had 441 total units in 2025, of which 95 were franchised-owned and 346 company-owned.
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:
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.
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.
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.
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.
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