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Potbelly

Information based on 2024 FDD
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Brand Highlights
  • Founded in 1977
  • Franchising Since 2009
  • 79 US Franchises
  • $643,500 - $1,159,090 Investment Range
  • $1,215,336 Average Gross Revenue
  • 6% Royalty Fee
  • $40,000 Franchise Fee
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Brand Description

Potbelly, established in 1977, has grown from a small antique shop serving sandwiches in Chicago to become a beloved national sandwich institution. Known for their signature hot, toasted sandwiches, Potbelly creates a warm, inviting atmosphere that combines quality food with a neighborhood vibe.

The brand stands out in the competitive sandwich market by offering made-to-order sandwiches toasted in their trademark ovens, creating a perfectly crispy exterior while maintaining a warm, soft interior. Their menu extends beyond classic subs to include fresh salads, hand-dipped shakes, homestyle soups, and their famous sugar cookies with crispy edges and gooey centers.

What truly sets Potbelly apart is their commitment to customization and quality ingredients. Each sandwich can be personalized with a variety of fresh toppings, including their distinctive hot pepper blend that has developed a loyal following. The brand's focus on fresh ingredients and made-to-order preparation ensures consistently high-quality meals that keep customers coming back.

For franchise owners, Potbelly offers a proven business model with strong brand recognition and a loyal customer base. Their locations range from traditional street-side shops to high-traffic areas like airports and business districts, demonstrating the concept's versatility. The company provides comprehensive training and ongoing support to help franchise partners maintain their high standards of food quality and customer service.

As a Potbelly franchise owner, you'll be joining a brand that combines the charm of a neighborhood sandwich shop with the efficiency of a modern quick-service restaurant, creating a unique position in the food service industry.

DID YOU KNOW?

How much does it cost to start a franchise with Potbelly?

$643,500
$1,159,090
Did you know that launching your own Potbelly sandwich shop franchise requires a total investment between $643,500 and $1,159,090, which covers everything from the $40,000 franchise fee to equipment, build-out costs, and working capital needed to bring those famous toasty sandwiches and hand-dipped milkshakes to your community?
Financial Summary
Franchise Fee
$40,000
Investment Range
$643,500 - $1,159,090
Investment Midpoint
$901,295
Minimum Cash Required
$643,500
Royalty Fees
6%
Brand Fund
3%
Brand Bragging Rights
Nearly five decades operational experience
Premium positioning in sandwich segment
Distinctive retro-style brand identity
Made-to-order toasted sandwich specialty
Above-average revenue performance metrics
Established counter-serve operational model
Financial Analysis
Potbelly requires a substantial investment ranging from $643,500 to $1,159,090, positioning it in the premium tier of sub sandwich franchises. This investment significantly exceeds sub-sector averages of $419,677-$864,432, reflecting the brand's established market position and comprehensive build-out requirements including kitchen equipment, point-of-sale systems, and signature retro décor elements.

The reported gross revenue of $1,215,336 substantially outperforms the sub-sector average of $608,302, indicating strong brand performance within the competitive sandwich segment. However, the fast-casual dining industry faces ongoing challenges from labor costs, supply chain pressures, and evolving consumer preferences toward healthier options.

With 424 units and 47 years of operational history since 1977, Potbelly demonstrates system maturity and brand recognition. The moderate unit count suggests selective growth rather than aggressive expansion, potentially indicating stronger territorial protection but limited market penetration compared to larger competitors.

Ideal investors should possess $300,000-$400,000 in liquid capital and restaurant industry experience, given the operational complexity of food service operations. The brand's counter-serve model requires skilled labor management and consistent food quality execution.

Key considerations include high initial investment requirements, competitive market dynamics, and the need for prime retail locations to support the premium positioning. Multi-unit development opportunities may exist for qualified operators in underserved markets. Prospective franchisees should thoroughly review the FDD and conduct comprehensive market analysis before proceeding.
Expected Investment Range
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Average Gross Sales
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Financing
Financing Details

Franzy connects you with top-tier financing partners to help secure the funds to invest in a franchise like Potbelly. Whether you're looking for a loan or exploring other financial products, our partners provide expert guidance to ensure you obtain the necessary capital. They specialize in offering solutions tailored to the needs of franchisees, making the process of securing financing smooth and straightforward.

Why Financing with Franzy Partners?

Choosing to finance through Franzy's partners ensures you get the best terms and support for your franchise investment. Our partners have extensive experience in the franchising industry and offer specialized financial solutions tailored to your needs. With competitive interest rates and flexible repayment options, you can find the right financing plan that fits your budget and goals. Our partners are committed to providing personalized guidance throughout the financing process, making it easier for you to secure the necessary funds and confidently move forward with your franchise venture.

Finance Partners
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First Bank of the Lake

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Golden Capital Solutions

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Location Analysis
Founded in 1977, Potbelly has grown to maintain widespread coverage across multiple states, demonstrating strong market presence particularly in the Midwest and Mid-Atlantic regions. The brand shows notable concentration in Michigan, with significant presence in Virginia, Maryland, Illinois, and Texas. This distribution pattern reflects successful penetration in urban and suburban markets with strong daytime populations.

The brand's consistently strong customer ratings and reviews indicate exceptional operational consistency and customer satisfaction. Representative locations, such as the Indianapolis Monument Circle site, demonstrate the brand's ability to deliver quality service across diverse markets.

The current footprint presents substantial expansion opportunities, particularly in underserved regions. While the brand shows robust presence in core markets like Michigan and Virginia, there remains limited penetration in potentially lucrative markets such as California, Florida, and Pennsylvania, representing significant growth potential. Successful locations typically operate near business districts, universities, or high-traffic retail centers.

Prospective franchisees should focus on markets with similar demographics to existing successful locations: areas with strong daytime population, robust commercial districts, and demographics matching those of proven markets. The brand's limited presence in the Northeast and West Coast suggests untapped potential in markets with compatible consumer preferences and spending patterns.
Total US Locations424
Open Franchises79
Corporate Locations345
Average Sq. FootN/A
Territory Map

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Franchise Net Unit Growth
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Additional Information

Executive Team

Get to know the leadership behind Potbelly. Learn about the experience and expertise of the executive team guiding Potbelly's success. For more details, refer to Item 2 of the Franchise Disclosure Document (FDD).

Litigation

Review any legal actions or pending litigation involving Potbelly. Understanding the legal history helps assess potential risks and the brand's business practices. For more details, refer to Item 3 of the Franchise Disclosure Document (FDD).

Bankruptcy

Review Potbelly's bankruptcy history and any filings by key personnel or affiliates. This critical information provides transparency about the brand's financial stability and management. For more details, refer to Item 4 of the Franchise Disclosure Document (FDD).

Franchisor Assistance

Learn about Potbelly's comprehensive support system for franchisees, including initial training programs and continuous operational assistance. Understanding the available resources and support structure is crucial for franchise success. For more details, refer to Item 11 of the Franchise Disclosure Document (FDD).

Frequently Asked Questions
Disclaimer

The information provided on this page is based on the latest Franchise Disclosure Document (FDD) that is publicly available and that we have on record, which was issued in 2024. This information is for informational purposes only and is not intended to constitute legal, financial, or business advice. We make no guarantees or claims regarding the completeness or accuracy. For the most current and detailed information, we recommend consulting the franchisor directly for the most recent FDD and regarding any questions that you may have about the information provided.

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