FDD ITEM 20 · FISCAL 2023–2025
Potbelly Sandwich Shop Item 20: outlets, closures & growth
In its latest FDD Item 20 (fiscal 2025), Potbelly Sandwich Shop reported 122 franchised outlets at year end. 2 of 102 franchised outlets open at the start of the year left the system — an annualized exit rate of 2.0%— while 22 new outlets opened. Systemwide units moved +10.6% over 2023–2025.
| Status (FTC) | 2023 | 2024 | 2025 |
|---|---|---|---|
| Outlets at start | 429 | 425 | 444 |
| Opened | 39 | 24 | 22 |
| Transfers | 0 | 0 | 0 |
| Terminations | 4 | 2 | 2 |
| Non-renewals | 0 | 0 | 0 |
| Reacquired by franchisor | 0 | 0 | 0 |
| Ceased — other reasons | 0 | 0 | 0 |
| Outlets at end | 425 | 444 | 470 |
| Net change | -4 | +19 | +26 |
2 terminations + 0 non-renewals + 0 ceased (other) = 2 exits ÷ 102 at start = 2.0%
These are the three FTC Item 20 statuses in which a franchisee involuntarily or terminally leaves the system. Transfers (0) are resales, not exits; reacquisitions by the franchisor (0) are tracked separately. There is no official “failure rate” — this annualized exit rate is the disclosed, measurable floor.
| State | Franchised | Company-owned |
|---|---|---|
| FL | 17 | — |
| MD | 13 | 13 |
| NC | 13 | — |
| NY | 12 | 0 |
| TX | 9 | 58 |
| WA | 8 | 0 |
| OH | 7 | 15 |
| IL | 6 | 109 |
| AR | 5 | — |
| OR | 4 | 1 |
| IA | 3 | — |
| KY | 3 | 1 |
| MO | 3 | 1 |
| UT | 3 | 0 |
| VA | 3 | 23 |
| MN | 2 | 20 |
| MS | 2 | — |
| IN | 1 | 14 |
| MI | 1 | 30 |
| ND | 1 | — |
| NE | 1 | — |
| SC | 1 | — |
| SD | 1 | — |
| TN | 1 | — |
| AZ | 0 | 10 |
| CO | 0 | 10 |
| DC | 0 | 18 |
| KS | 0 | 2 |
| MA | 0 | 5 |
| NV | 0 | — |
| OK | 0 | 2 |
| PA | 0 | 0 |
| WI | 0 | 14 |
A broker is paid by the franchisor to place you. An independent CPA is paid by you — and the job is pressure-testing Potbelly Sandwich Shop's numbers, including talking you out of a bad deal.
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