CartwheelCartwheel
Paytronix Fees - $124 Currently, • Ops Systems Fees - $158 $1,165 per • Security and Office365 - $100 month plus $0.20 per • CrunchTime - $203 digital • NCR - $330 transaction, • Cartwheel - $30 plus
From the filings
+19.608% units YoYHQ-led decisions
Potbelly Sandwich Shop
Quick service restaurantPotbelly Sandwich Shop's 2026 FDD puts software purchasing under headquarters control: Item 11 requires franchisees to run the computer, POS, and card-processing systems Potbelly specifies, currently including Toast POS, and a required monthly technology fee covers NCR, Paytronix, CrunchTime, and Cartwheel. With 470 locations — 122 franchised, 348 company-owned — and franchised outlets up 19.608% year over year, this is an actively growing system for a vendor to target.
For software vendors selling into US franchise brands.
Live signals
Total units
470
122 franchised
Unit growth YoY
+19.608%
vs prior filing
AUV
$1.34M
Item 19, 2025
Royalty
6%
of gross sales
Ad fund
3%
national + local
Initial fee
$40K
per unit
Investment range
$629K–$999K
all-in, Item 7
Procurement
Approved supplier
from the filing
Non-compete
2 years
from the filing
Item 19
Claims
from the filing
Ongoing fee load
What the operator pays every month
The recurring percentage of gross sales named in this filing, before rent, labour or any technology fee.
9%of gross sales (FY2026)
15% reference
Mandated & recommended tech
The systems vendors compete with
Systems named in Item 11 of this filing. None is recorded as mandated here, which is not the same as the filing mandating nothing. Read Item 11 before treating the category as open.
DoorDashDoorDash
e Shop and comply with all System Standards, which may require you to provide catering and delivery services and/or utilize third-party delivery services (e.g. Uber Eats, Grubhub, DoorDash, EZCater, e
ezCaterezCater
comply with all System Standards, which may require you to provide catering and delivery services and/or utilize third-party delivery services (e.g. Uber Eats, Grubhub, DoorDash, EZCater, etc.), and o
GrubhubGrubhub
from the Shop and comply with all System Standards, which may require you to provide catering and delivery services and/or utilize third-party delivery services (e.g. Uber Eats, Grubhub, DoorDash, EZC
NCRNCR Voyix
s - $220 these services. • Paytronix Fees - $124 Currently, • Ops Systems Fees - $158 $1,165 per • Security and Office365 - $100 month plus $0.20 per • CrunchTime - $203 digital • NCR - $330 transacti
PaytronixPaytronix
will be passed through Services Fee depending on to the franchisee from the franchisor. the costs we These fees include: incur to provide • IT System Fees - $220 these services. • Paytronix Fees - $12
ToastToast
udes one back-office computer configured with Microsoft Office, two to four Toast POS touch-screen point-of-sale terminals installed in the front-of-house area, and three to seven Toast POS kitchen di
Uber EatsUber
from the Shop and comply with all System Standards, which may require you to provide catering and delivery services and/or utilize third-party delivery services (e.g. Uber Eats, Grubhub, DoorDash, EZC
Franchisor behaviours
What the franchisor requires
28 requirements the franchisor states in this filing, each in its own words; 2 explicit no's; 4 questions the text does not settle, which is not a no.
Accounting
Does the franchisor have direct or independent electronic access to the franchisee's financial, sales or customer records?
YesFranchise agreement
We always will have unlimited, 10 POTBELLY FDD – EXHIBIT B (4/2026) ACTIVE 716612310v5 independent access to the Computer System, although we will not have any access to employee- or employment-related information for your Shop’s employees.
How the franchisor buys
Is the franchisor or an affiliate itself a supplier of required products, services or systems?
YesItem 8
However, one of our affiliates received a total of $12,898,314 during our 2025 fiscal year from selling or leasing products and services to our franchisees.
Is there a franchisee advisory council, association or committee?
YesItem 11
We formed an advisory council which advises us on advertising policies for the Potbelly system.
Does the franchisor reserve the right to change designated suppliers or systems at any time?
YesFranchise agreement
We may modify the Computer System’s specifications and components.
How much revenue did the franchisor and its affiliates earn from franchisee purchases in the last fiscal year?
12898314Item 8
However, one of our affiliates received a total of $12,898,314 during our 2025 fiscal year from selling or leasing products and services to our franchisees.
Does the franchisor or an affiliate receive rebates, commissions or other revenue from designated or approved suppliers?
YesItem 8
We and our affiliates may receive revenues from required purchases and leases of products and services by franchisees.
Item 8 gives this proportion in one of two shapes: separate percentages for establishing the business and for operating it, or one figure covering "establishing and operating" together. Where they are separate, answer with the operating percentage; where the passage gives only the combined figure, answer with that. What percentage of the franchisee's purchases must come from designated or approved suppliers?
100Item 8
Collectively, the purchases and leases described above are virtually 100% of your overall purchases and leases to establish and operate the Shop.
Does the franchisor charge a fee to evaluate a proposed supplier?
YesItem 8
We may charge you or the supplier a reasonable testing or inspection fee and will decide within 6 months.
Can a franchisee propose a new supplier for the franchisor's approval?
YesItem 8
If we institute any restrictive sourcing program and you want to buy any product brand, ingredient, supply, or service we have not yet approved as meeting our minimum standards and specifications or to buy from a supplier we have not yet approved or designated, you first must notify us and, if requested, send samples…
Communications
Does the franchisor own or control the business telephone numbers, or take them over when the agreement ends?
YesItem 17
assigning telephone and other numbers and email addresses to us (including under a Conditional Assignment of Telephone Number(s))
Data and IT
Must the franchisee comply with PCI, data-security or cybersecurity standards set by the franchisor?
YesFranchise agreement
You must provide us with, at a minimum, your annual Attestation of Compliance (“AOC”) demonstrating that you have completed all of the necessary actions to be PCI compliant.
Franchise management
Does the franchisor conduct periodic inspections, audits or evaluations of the franchised business?
YesFranchise agreement
We may advise you periodically regarding the manner in which, based on your reports or our evaluations and inspections, operations at the Shop promote and enhance the quality of the Potbelly brand.
Can the franchisor change the operations manual and brand standards unilaterally?
YesItem 11
We periodically may modify the substance of the Operations Manual to reflect changes in System Standards and your other operating requirements.
Must the franchisor approve the franchisee's site or location before opening?
YesItem 11
We must accept the Shop’s proposed site in writing before you may sign any purchase agreement, lease, sublease, or other occupancy document for the site.
Marketing
Is the franchisee prohibited from operating its own website or social media accounts, or required to use pages the franchisor provides?
YesItem 11
You may not develop, maintain, link to, or authorize any other website mentioning or describing you or the Shop or displaying any of the Marks.
Is a minimum grand opening advertising spend required?
YesItem 11
You must conduct a Potbelly Shop market introduction program for your Shop that is in compliance with our guidelines beginning before and continuing for 90 days after the Shop opens for business.
Is the franchisee required to spend a minimum amount on local advertising or marketing, as a percentage of sales or a fixed amount?
YesItem 11
you currently must spend a minimum of 1% of the Shop’s Total Revenue each year of the franchise term to market and promote your Shop locally (the “Local Marketing Spend”).
Must the franchisee participate in a customer loyalty or rewards program?
YesItem 8
You must issue and honor/redeem gift certificates, coupons, and gift, loyalty, rewards, and affinity cards for Potbelly Shops and participate in, and comply with the requirements of, our gift card and other customer loyalty, affinity, rewards, and similar programs.
Must the franchisee participate in a regional advertising cooperative when one exists?
YesItem 11
If there is an Area Cooperative, you must (a) join, participate in, sign the documents we require to become a member of and actively support the Area Cooperative in compliance with its governing documents (which you may review), and (b) contribute a specific percentage of your Shop’s Total Revenue to the Area…
Operations
Must the franchisee buy products from a designated distributor?
YesItem 8
You currently must buy certain meats, cheeses, bread, produce, ready-to-bake items, soups, sauces, canned/jarred items, condiments, dry foods, beverages, and packaging from unaffiliated designated sources.
Must equipment be purchased from designated or approved suppliers?
YesFranchise agreement
You must purchase or lease approved brands, types, and models of Operating Assets only from suppliers we designate or approve (which may include and/or be limited to us and/or our affiliates).
Payments
Are royalties and other fees collected by automatic bank debit (ACH or electronic funds transfer) from the franchisee's account?
YesItem 6
We will debit your EFTA for these amounts on their due dates.
Must the franchisee participate in a gift card program?
YesItem 8
You must issue and honor/redeem gift certificates, coupons, and gift, loyalty, rewards, and affinity cards for Potbelly Shops and participate in, and comply with the requirements of, our gift card and other customer loyalty, affinity, rewards, and similar programs.
People
Does the franchisor require minimum staffing levels or specific roles?
YesItem 11
After the initial training, your Shop always must have on staff a trained General Manager so that the quality of the products and the Potbelly brand is maintained.
Point of sale
Must the franchisee use a specific point-of-sale system designated or approved by the franchisor?
YesItem 11
You must obtain and use the computer-hardware and software we specify, including required computer, point-of-sale, and other electronic information systems, a high-speed Internet connection, and all equipment components and software necessary for you to accept and process Potbelly gift, loyalty, and rewards cards and…
Does the franchisor have independent access to the data in the franchisee's POS or computer system?
YesItem 11
We have independent, unlimited access to the information the system generates, although we will not have any access to employee- or employment-related information for your Shop's employees.
Training
Can the franchisor charge the franchisee for additional, refresher or remedial training?
YesItem 11
Periodically offer refresher training courses.
Is attendance at an annual convention or conference mandatory for the franchisee?
YesFranchise agreement
Besides attending supplemental training, at least one of your representatives (whom we approve) must, at our request, attend an annual convention of all Potbelly Shop franchisees for up to three (3) days at a location we designate.
The filing answers no to 2 questions
- Must the franchisee use an accounting or bookkeeping system designated or approved by the franchisor?Franchise agreement
- Must the franchisee use a CRM system designated or approved by the franchisor?Item 8
Who buys here
The buyer at this brand
The decision-maker a vendor sells to at this scale, and the gaps they’re paid to close, derived from our data by segment and unit count, not a guess.
HQ leadership: CEO/President + VP Ops/Franchise + a first dedicated IT/systems owner.
VP SalesHead of SalesCROSales Director
- 41.9% of quick service brands mandate no POS system, leaving a massive blind spot in your target list.By instantly identifying the 452 brands with no POS mandate, you replace weeks of manual FDD research and focus your pipeline on high-fit displacement targets, cutting customer acquisition cost by over 60%.
- 82.3% of brands mandate no accounting system, signaling a wide-open market for tech vendors.FranCloud surfaces the 888 brands without an accounting mandate so your team can prioritize outreach before competitors even know they exist, turning a manual research cost center into a predictable revenue engine.
- Only 17 out of 1,079 quick service brands mandate a CRM, yet unit counts and AUVs prove these are high-value accounts.Instead of spending 40+ hours manually combing FDDs to find CRM-needy brands, FranCloud delivers the 17 mandate-holders and their financials in one query, letting your team close deals 10x faster.
The vendor opportunity at Potbelly Sandwich Shop
Potbelly operates 470 quick-service locations — 122 franchised, 348 company-owned — and its 2026 FDD reports franchised outlets up 19.608% year over year. Item 19 puts the average unit figure at $1,344,085 for the 97 franchised shops open the full 2025 measurement period, and the filing makes a financial performance representation on that basis. Royalty runs 6.0% of sales on a 10-year initial term. Potbelly is part of Hero Franchising.
Who controls software purchasing
Item 11's computer-system mandate applies system-wide, so purchasing decisions run through headquarters rather than individual operators. Officers the FDD names include David Daniels (SVP, Chief Marketing Officer) and John Beckley (VP, Franchise and Corporate Real Estate).
Tech named in the FDD, and what is actually required
The FDD requires franchisees to buy and install a franchisor-specified computer, point-of-sale, and electronic system able to process Potbelly's gift, loyalty, rewards, and affinity cards, and to keep it upgraded — including PCI Data Security Standard compliance through an approved testing vendor. That system currently includes a back-office computer with Microsoft Office plus Toast POS terminals and kitchen display screens, and the required monthly Technology Services Fee passes through fees for NCR, Paytronix, CrunchTime, Cartwheel, and Office365. Franchisees must also use Potbelly's designated vendors of gift, loyalty, rewards, and affinity card processing and mobile app services.
Procurement, renewals, and timing
Potbelly runs an approved-supplier list. Franchisees must buy certain interior menu boards and signage, interior custom lighting, artifacts and décor, and tabletops and bases from Potbelly or an affiliate; other purchases can go through a proposed supplier once approved. The initial franchise term is 10 years, with one successor 10-year term available to franchisees in substantial compliance who remodel to then-current standards and sign a new agreement — a natural point for vendors to revisit incumbent contracts, alongside the steady pace of new-unit openings.
How to read the Potbelly FDD
The embedded PDF viewer below holds Potbelly's 2026 Franchise Disclosure Document in full. Talk to FranCloud for a ranked target list of franchise systems like this one.
Questions vendors ask
Potbelly Sandwich Shop, answered from the filing
Item 11 designates the computer, POS, and card-processing systems companywide, so the mandate runs through headquarters. Among the named officers are David Daniels (SVP, Chief Marketing Officer) and John Beckley (VP, Franchise and Corporate Real Estate).
Item 11 requires a franchisor-specified computer and POS system that processes Potbelly's gift, loyalty, and rewards cards, plus PCI-compliant hardware upgrades. The system currently includes Toast POS terminals and kitchen display screens, and a required monthly Technology Services Fee covers NCR, Paytronix, CrunchTime, Cartwheel, and Office365.
Potbelly operates 470 quick-service restaurant locations nationwide — 122 franchised and 348 company-owned — with franchised outlets up 19.608% year over year in the 2026 FDD.
Potbelly runs an approved-supplier list. Franchisees must buy certain interior menu boards and signage, custom lighting, artifacts and décor, and tabletops and bases from Potbelly or an affiliate, and may propose alternate suppliers for other items subject to approval.
The initial term is 10 years, with one successor 10-year term available for franchisees in compliance; renewal requires remodeling to then-current standards, a natural point to revisit technology contracts. Franchised outlets grew 19.608% year over year, so new-unit openings are also active windows.
The embedded PDF viewer below contains Potbelly's 2026 Franchise Disclosure Document. Read Item 11 for its technology mandates and Item 8 for supplier restrictions directly in the filing.
Source
Read the filing itself
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FDD alert
Tell me when this brand refiles.
We’ll email you the moment Potbelly Sandwich Shop files a new annual FDD, usually the freshest signal of a vendor change.
Operator footprint
Who runs the locations
51 operators run 79 mapped locations. 9 of them are multi-unit. Aggregate counts from the filing; no names.
Operators by units owned
Single-unit42
2–9 units8
10–24 units1
Top states by locations
| FL | 17 |
|---|---|
| MD | 13 |
| NY | 12 |
| NC | 12 |
| AR | 5 |
Ownership
The portfolio behind Potbelly Sandwich Shop
unknown of hero franchising.
Related Quick service restaurant brands
Primary franchise filings · updated September 2026. Every figure is source-traceable and QA-checked.