Jason’s Deli Franchise Costs, Fees & Owner Salary (2023)

INVESTMENT

$3,435,000

-

$5,069,000

LOCATIONS

243

Emily

Updated

May 2, 2024

Is

Jason’s Deli

a franchise?

Yes,
Jason’s Deli
currently
accepts
franchise
applications

Jason's Deli is a prominent name in the fast-casual restaurant industry, known for its commitment to serving healthy and delicious food. Established in 1976 by Joe Tortorice, Pat Broussard, Pete Verde, and Rusty Coco in Beaumont, Texas, Jason's Deli has grown significantly over the years. The first deli, located in its city of origin, remains operational to this day, illustrating the brand's longstanding tradition and commitment to quality.

The franchise began expanding through franchising in 1988, a strategic move that has contributed to its widespread presence. Jason's Deli differentiates itself from the competition by focusing on the healthfulness of its offerings. It was one of the first restaurant groups to eliminate artificial trans fats from its food in 2005, and it didn't stop there.

Over the years, Jason's Deli has also removed processed MSG, high-fructose corn syrup, dyes, artificial colors, and flavors from its menu, ensuring that what they serve is not only tasty but also good for their customers. This health-conscious approach is central to Jason's Deli's identity, setting it apart in a crowded fast-casual market.

Jason's Deli continues to be a family-owned and community-focused business, emphasizing the quality of its ingredients and the health benefits of its menu. This approach not only caters to the growing consumer demand for healthier dining options but also fosters a loyal customer base that values the brand's commitment to well-being and community engagement.

How many

Jason’s Deli

franchises

are there?

In 2022, there were
243
outlets in
the United
States, of which
83
are franchises, and
160
are corporate-owned.

What are the

Jason’s Deli

franchise

fees?

Advertising fee

2.00%

Initial Franchise Fee ($35,000)

This is a non-refundable fee, except as provided in the Site Development Addendum.

Operating Fee (4% of Gross Sales)

The fee is payable monthly on the 15th day of the next month. If the 4% of gross sales is less than $2,500.00 per month, then the franchisee must pay $2,500.00.

Advertising Fee (2% of Gross Sales)

  • Franchisees are required to pay an advertising fee of 2% of the gross sales generated monthly or a minimum of $500.00 per month.
  • The franchisor currently allows each franchisee to retain the funds otherwise payable as an advertising fee on the condition that the funds retained will be spent monthly on local and/or regional retail advertising approved by the franchisor.
  • An additional Administrative Fee of ½ of 1% may be collected.

Fee for Tardy Submission of Sales Report ($10 per day)

This fee is charged for each day the Sales Report is late.

Transfer Fee ($7,000)

This fee is payable prior to the consummation of the transfer.

Site Evaluation Fee ($2,500)

This fee is payable immediately upon billing if due.

Note: The fees presented here can be found in the Item 5 of the Franchise Disclosure Document. For a complete list of all the fees borne by the franchisee, please consult the Franchise Disclosure Document.

How much does

it cost

to start a

Jason’s Deli

franchise?

It costs between
$3,435,000
and
$5,069,000
to start a
Jason’s Deli
franchise.

Jason's Deli, a renowned New York-style delicatessen, offers a diverse range of delicatessen products. For those considering franchising a Jason’s Deli restaurant, the total estimated initial investment necessary to commence operation ranges from approximately $1,016,759 to $1,554,891.

This investment encompasses various costs, including an initial franchise fee paid to the franchisor, among other expenditures.

Investment Cost Breakdown:

Type of Expenditure Amount
Initial Franchise Fee $35,000
Development Fee $17,500 per additional Deli
Travel and living expenses while training $15,000
Build out or remodeling of 4,500-5,000 sq. ft. premises $497,000 to $766,000
Equipment: Fabricated Equipment, Buyout Equipment, Furniture, Small Wares, Signage $300,000 - $100,000
Administrative and Miscellaneous $5,000 to $20,000
Interim Interest Payments $10,000 to $125,000
Insurance $4,500 to $15,000
Online Ordering Set-Up Costs and Monthly Hosting $450 per store and $130 monthly per store
Point-Of-Sale System $3,600 to $6,000 per store & $600 to $1,200 monthly per store
Customer Satisfaction/Feedback Software $60 monthly per store
System Email $150 per user account per year
Initial Inventory $33,000
Additional Funds – 3 months $20,000 to $35,000
Total $1,017,000 to $1,555,000

Note: The table above provides a snapshot of the main costs associated with starting the most common franchise format (as disclosed in the Item 7 of the Franchise Disclosure Document). For a complete overview of all the expenses involved with the various formats offered by the franchisor, please consult the Franchise Disclosure Document.

Does

Jason’s Deli

provide

training

to its

franchisees?

Yes,
Jason’s Deli
provides
training

Here's a detailed look at what they offer to their franchisees:

Training Program: Jason's Deli offers a comprehensive training program.

Who Needs to Attend: At least five individuals must attend and successfully complete the initial training program. This includes the franchisee's Operating Principal, the General Manager, and a minimum of two and a maximum of four members of the franchisee’s management personnel, depending on the size of the Deli.

Training Content: The training program covers sales techniques, product orientation, accounting procedures, food preparation, and operations management.

Location and Duration: The training is provided at Jason's Deli's designated locations. The members of the Management Staff must begin training at least five weeks before opening, and the training program will last for at least a thirteen-week period.

Ongoing Training: Jason's Deli may require the Principal Trainees to attend refresher courses, seminars, and other training programs.

Training Expenses: The franchisee will be responsible for all personal expenses incurred by trainees in connection with training programs, including all costs and expenses relating to transportation, lodging, meals, wages, and employee benefits.

Does

Jason’s Deli

provides

territory

protection?

Franchisees do not receive an exclusive territory unless they enter into a Development Agreement. When they do, during the term of the Development Agreement, Jason's Deli will not establish or grant a franchise to any other person within the franchisee's option area. This option area is determined based on the number of stores that the particular market can hold.

In new markets, Jason's Deli prefers to sell franchises to multi-unit operators, making a Development Agreement conveying an exclusive territory mandatory.The option area is described in an attachment to the Development Agreement and typically consists of a metropolitan area, county, or other political subdivision.

The continuation of territorial rights is contingent upon the franchisee's adherence to a development schedule agreed upon between the franchisee and Jason's Deli. This schedule requires the franchisee to open the first Deli within 12 months after executing the Development Agreement. Subsequent Delis must be opened in accordance with the development schedule.

Can a

Jason’s Deli

franchise

be run as

a passive

investment?

Franchisees of Jason’s Deli are required to have themselves, a general manager, and three other management personnel who must personally manage the Deli. All of these individuals, including the franchisee, must attend and successfully complete the training program provided by the franchisor.

This training is mandatory for those who will be actively involved in the management and operation of the Deli. The franchisor emphasizes the importance of the franchisee's personal and continuous efforts, supervision, and attention to the success of the Deli.

In conclusion, Jason’s Deli expects active involvement and management from the franchisee and their designated management team.

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