Jimmy John's Franchise Costs, Fees & Owner Salary (2023)

INVESTMENT

$356,000

-

$674,000

OPERATING PROFIT

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Emily

Updated

February 10, 2024

Is

Jimmy John's

a franchise?

Yes,
Jimmy John's
is a franchise and
currently
accepts
franchise
applications

Jimmy John's is a renowned sandwich chain that was founded in January 1983 in the college town of Charleston, Illinois, by Jimmy John Liautaud. The brand started with a simple menu of four sandwiches and has since expanded to include a wide variety of offerings. Jimmy John's differentiates itself from the competition through its commitment to fresh ingredients, with hand-sliced meats and fresh-baked bread being staples of their menu.

The brand is known for its fast delivery service, which was a unique selling point that helped to compensate for its initial less-than-ideal location near campus. This focus on convenience and quality has allowed Jimmy John's to grow significantly over the years.

In 1994, Jimmy John's began franchising, with the first franchise location opening in Eau Claire, Wisconsin. This expansion was part of a broader strategy to grow the brand through franchising, which has proven to be highly successful.

Jimmy John's headquarters is currently located in Atlanta, Georgia, as part of the Inspire Brands family, which acquired the company in October 2019. This acquisition has allowed Jimmy John's to leverage additional resources and continue its growth trajectory while maintaining its core values of quality and customer service.

How many

Jimmy John's

franchises

are there?

In 2022, there were
2657
outlets in the United States, of which
2616
are franchises, and
41
are corporate-owned.

What are the

Jimmy John's

franchise

fees?

Initial franchise fee

$35,000

Royalty fee

6.0%

Advertising fee

6.5%

Initial Franchise Fee ($30,000 - $35,000)

The initial franchise fee for a standard Franchise Agreement with Jimmy John's ranges between $30,000 to $35,000, payable as a lump sum upon signing the Franchise Agreement.

Royalty Fee (6% of weekly Gross Sales)

Franchisees are required to pay a weekly royalty fee equal to six percent (6%) of the Restaurant’s Gross Sales.

Advertising (Up to 4.5% of weekly Gross Sales)

A portion of the weekly Gross Sales, up to 4.5%, is allocated towards the Development Fund for advertising purposes. Additionally, franchisees may contribute up to 2% of the Restaurant’s Gross Sales to Cooperative Advertising Programs as directed.

Rent (Varies)

The rent is variable and is agreed upon in the lease agreement if the property is leased from Jimmy John's.

Transfer of Interests Fee ($10,000 for successor franchise after initial franchise term expires)

Upon the sale of a franchise or other transfer after the initial franchise term expires, a transfer of interests fee of $10,000 is applicable.

How much does

it cost

to start a

Jimmy John's

franchise?

It costs between
$356,000
and
$674,000
to start a
Jimmy John's
franchise.

The total estimated initial investment to start a Jimmy John's franchised restaurant ranges from $356,200 to $674,200. Below is a detailed breakdown of these costs:

Type of expenditure Amount
Initial Franchise Fee $30,000 - $35,000
Real Estate/Rent (1 month) $2,500 - $8,000
Security Deposit $2,500 - $8,000
Leasehold Improvements $115,000 - $310,000
Furniture, Fixtures, Signage, and Equipment $115,000 - $166,000
Architect $9,500 - $17,000
Office Equipment $2,200
Utility Deposits $1,000 - $2,000
Opening Inventory and Supplies $6,000
Grand Opening Event $3,000 - $5,000
Training Expenses (out-of-pocket costs for up to 3 people) $6,000 - $15,000
Insurance $11,500 - $15,000
Miscellaneous Expenses $2,000 - $10,000
Additional Funds – 3 months $50,000 - $75,000
Total $356,200 - $674,200

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

Jimmy John's

provide

training

to its

franchisees?

Yes,
Jimmy John's
provides training to its franchisees.

Jimmy John’s has a structured training program to ensure franchisees are well-prepared to operate their restaurant. Here’s a simplified breakdown of the training provided:

1. Initial Training and Assistance:

  • Before the restaurant opens, the Operations Partner and on-site managers are required to undergo initial training.
  • If the Operations Partner feels the need for additional or repeat training at the end of the initial program, it can be arranged, though at an extra cost.

2. Ongoing Training:

  • The franchisor may require the Operations Partner and/or previously trained managers to attend periodic training courses during the franchise term.
  • There's also an annual meeting of all Jimmy John's Restaurant franchisees which they might be required to attend.

3. New Manager Training:

  • If new or additional on-site managers are hired during the franchise term, they may be required to complete the franchisor's then-current initial training and apprenticeship programs.
  • The franchisee is responsible for all travel and living expenses incurred during training.

4. District Manager Training:

  • If a franchisee and/or their affiliates own three or more Jimmy John's Restaurants, a District Manager must be appointed.
  • The District Manager is required to attend and successfully complete all Certified Manager training, including a three-week initial training and a four-week apprenticeship program.

Does

Jimmy John's

provides

territory

protection?

Franchisees have the opportunity to develop and operate a number of Jimmy John's Restaurants within a specific area, termed the "Territory," as outlined in the Development Rights Agreement. This Territory is typically defined by cities or other political subdivisions and is determined based on factors such as the number of Jimmy John's Restaurants the franchisee agrees to develop, demographics, and site availability.

However, it's essential to note that the Territory does not guarantee exclusivity. Furthermore, while franchisees have delivery rights within their Territory, they do not have the right to use other distribution channels to make sales away from their location.

There are also certain exceptions to the exclusive right to establish and operate Jimmy John's Restaurants within the Territory, especially concerning locations with specific financial, experience, or organizational standards set by the location's owner or manager.

Can a

Jimmy John's

franchise

be run as

a passive

investment?

Jimmy John's requires the franchisee or a designated manager to be actively involved in the day-to-day operations of the restaurant.

The franchise agreement specifies that a competent employee, acting as a full-time manager or shift supervisor, must always supervise the restaurant directly on-premises.

This designated individual must complete the company's initial training program and receive approval from the company.

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