Potbelly Franchise Startup Cost, Profit & Opportunities
You might find the Potbelly brand attractive when looking for a fast-casual restaurant chain to invest in.
This famous restaurant brand offers various irresistible food delicacies in a friendly and welcoming environment. This tradition of excellence has made the Potbelly brand attractive to investors.
In this article, we’ll dwell on Potbelly’s franchise offering.
Before we get into that, we’ll determine if the company has a franchise program. As you read on, you’d find all the answers you need to make an investment decision.
So, are you ready? Tag along for all the details on Potbelly’s franchise offering.
Some Background information
Like many similar restaurant businesses, Potbelly started from humble beginnings as a fast-casual restaurant specializing in a wide range of delicacies like soups, salads, baked goods, and toasted sandwiches.
It commenced operations in 1977 as its first antique store and has since gone international.
Today, Potbelly boasts about 400 locations spread domestically (across the United States) and internationally, with locations in the Middle East and Canada.
It offers investment opportunities to interested and qualified candidates seeking to join its growing brand. Do you have what it takes?
Is Potbelly a Franchise?
This is a vital question to ask as an interested candidate.
If you’ve followed our discussion to this point, you’ll recall that mention was made about Potbelly’s franchise program. In other words, Potbelly does have a franchise program that’s available to interested investors.
This is a robust program that provides all kinds of comprehensive support to new and existing franchisees to join the growing brand.
Besides such an opportunity, you also get the chance to operate and grow a fast-casual restaurant business while leveraging the brand’s popularity.
Potbelly Franchise Cost
Regarding joining Potbelly’s franchise program, the cost is one of the primary considerations or requirements.
The estimated initial investment excluding real estate lease or acquisition costs is around $564,050 to $782,700. There’s a whole range of cost details included here.
To give you an idea, these include an initial franchise fee of $40,000 paid to the franchisor. Real estate or rent and the security deposit are primarily determined by your lease and delivered to the landlord.
Construction and lease improvements will cost anywhere from $240,000 to $350,000.
Other details of the estimated initial investment include an architect fee of around $22,000 to $28,000 and furniture fixtures & signage which costs around $65,000 to $95,000.
Equipment & point-of-sale, and computer systems will cost between $96,000 to $114,000, and $25,000 to $28,000, respectively.
Other Cost Details
Other investment cost details include the opening inventory, which goes for $11,000 to $16,000, and the marketing introduction program of about $1,000 to $7,000.
Insurance for 12 months costs $10,000 to $15,000, while training and expenses cost about $40,000 to $45,000.
Professional fees and business licenses & permits go for between $2,000 to $5,000 and $250 to $1,700, respectively.
The estimated cost of joining Potbelly’s franchise program includes office equipment & supplies and additional funds (for three months) that cost around $800 to $3,000, and $25,000 to $35,000, respectively.
Potbelly Franchise Profit Potential
Regarding the profit potential of joining Potbelly’s franchise program, it’s pretty tricky to give exact details.
While true, the general assumption is that this opportunity is worthwhile for many. However, there are primary factors to consider when it comes to profitability.
Some of these factors largely depend on how capable you are. For example, your management skills will significantly affect how well you run your franchise outlet(s).
Other factors include franchisee location, operating costs, royalties, and fees.
This is why you must conduct a lot of research as a franchisee. This gives you a clear picture of what to expect. Part of this research includes speaking to existing franchisees about what they think about the business and whether their initial expectations have been met or exceeded.
The franchise disclosure document (FDD) is a critical document that needs to be thoroughly understood. This document sums up the entire franchise operations.
Having a clear idea of what’s contained in this document will go a long way in helping you determine whether to proceed.
Types of Support Provided
Like most reputable franchise programs, Potbelly offers new and existing franchisees a wide range of support services. These are designed to help them succeed, impacting the brand.
Key areas of support include training, site selection, and purchasing.
Other types of support include marketing, operational support, technology, and research and development. In research & development, Potbelly ensures its customers always keep returning to its constantly improving menu. Here, new menu items are researched and developed.
Operational support includes audits, regular store visits to help tackle rising challenges, and consultations. Training is an essential step required for effective operations.
Potbelly franchisees undergo rigorous training to help them gain the needed skill and experience.
This franchisor assists with site selection to ensure your Potbelly franchise outlet is strategically located. Marketing is another area you’ll benefit from as a Potbelly franchisee.
Here, you get full access to the use of its promotional materials, social media marketing, and national advertising campaigns.
Getting Started: How to Join Potbelly’s Franchise
If you’re convinced this is the right opportunity, you can start the ownership process by following these steps: The initial inquiry is the way to go.
This involves filling out Potbelly’s initial inquiry form. There are vital details to be filled in, such as your first name, last name, and zip or postal code.
Other personal details the franchisor requires include mobile number, email, city of residence, state or province, country, and current net worth. A description of your business or franchise experience is needed.
Also, cash available for investment, lead source category, and information source details is required.
After submitting the form, a thorough evaluation is made by Potbelly’s franchise development team. When the team finds your application satisfactory, you’ll be required to proceed to fill out and submit a franchise application form.
As expected, a review of your application has been made.
This is followed by an interview and due diligence session, and approval is made for qualified applicants. The whole application process concludes with signing the franchise agreement.
The training follows immediately to provide the needed skill and know-how to run your franchise operations.
With the abovementioned processes, you can start your journey to becoming a Potbelly franchisee. If you have any doubts or questions, it’s best to contact the franchisor for clarification before beginning the process.