Product category




Jimmy John’s Franchise Costs $356K – $674K (+ 2024 Profits)

Jimmy John’s, a prominent name in the sandwich shop franchise industry, was founded in 1983 by a 19-year-old entrepreneur in Charleston, Illinois. The inception of Jimmy John’s was fueled by a simple yet compelling vision: to offer freshly made sandwiches using high-quality ingredients.

The franchise began its expansion journey in 1994, opening up opportunities for other entrepreneurs to be part of the fast-growing brand. This move marked the beginning of a nationwide expansion that would see Jimmy John’s becoming one of the fastest-growing franchise concepts in the United States.

Jimmy John’s distinguishes itself from competitors through its focus on simplicity and speed, with a menu that boasts a straightforward selection of sandwiches made from a concise list of ingredients. This simplicity is matched by a robust delivery system, designed to ensure that all orders are delivered fast and fresh, a service that sets Jimmy John’s apart in the competitive fast-food industry.

Find the most profitable franchises

Access the (only) database of franchise profit stats. For franchisees, franchise brokers and investors.

✅ Download Franchise Disclosure Documents

✅ Compare turnover, investment, profits and more

Initial investment

Type of expenditureAmount
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

Franchise fees & Royalties

Initial Franchise Fee

The initial franchise fee is fully earned when paid and not refundable under any circumstances. During the fiscal year ending January 1, 2024, initial franchise fees ranged from $0 to $35,000. If you sign a Development Rights Agreement, the development fee is due in full upon signing, calculated as $10,000 for each Restaurant agreed to be developed but not immediately franchised.

Royalty Fee

Franchisees are required to pay a weekly Royalty Fee equal to 6% of the Restaurant’s Gross Sales. This fee is not in exchange for any specific products, services, or assistance but is for the rights granted under the franchise agreement.

Transfer Fees

In the event of a transfer, a fee of $12,500 is due if the transfer includes both the franchise rights and the Restaurant. This fee may vary based on the specifics of the transfer.

Lease or Rent Fee

Initial investment estimates include a monthly real estate or rent fee ranging from $2,500 to $8,000, payable as agreed and as incurred to the landlord .

Find the most profitable franchises

Access the (only) database of franchise profit stats. For franchisees, franchise brokers and investors.

✅ Download Franchise Disclosure Documents

✅ Compare turnover, investment, profits and more

FRANCHISE PROS AND CONS

Although the chain store has been consistently successful, it still has pros and cons.

Pros:

  • Great opportunity for growth: Today, the Jimmy John’s franchise has over 2,800 units, with 98% of them being franchise owned. The chain has a good growth record and gives franchisees a good investment opportunity.
  • Proven business model: The Jimmy John’s franchise is known for its best-in-class sandwiches made from all-natural meats and vegetables that are hand-sliced in-house every day. And that’s not all. Their bread is also freshly baked all day, every day. Customers recognize the brand, love its food, and will connect with new restaurants.
  • Strong franchise support: The success of a franchisee depends mostly on the support it gets from the parent company. Jimmy John’s franchise offers perfect support to her would-be franchisees. As a new franchisee, you get real estate, construction, marketing, operations, and purchasing training and support from franchise experts to help you operate the business efficiently.
  • Superior brand recognition: The Jimmy John’s brand, known for its fresh and expertly prepared sandwiches, has grown tremendously in recent years. The brand has been able to compete in a crowded market of sandwich franchisors. Going into business, a new franchise can ride on the brand’s popularity to grow fast and make a good income.
  • Simple but appealing menu: The Jimmy John’s sandwich menu is pretty simple and quite appealing to customers. This can attract customers and is less costly to the franchisees.
  • Efficiency: The Jimmy John’s franchise prides itself on offering fast and efficient service. They serve made-to-order fresh sandwiches in under 30 seconds. They also provide deliveries to increase sales. This efficiency attracts a great range of customers.

Cons

  • There is no exclusive territory protection. The Jimmy John’s franchise does not offer franchisees exclusive territory protection. New restaurants may face competition from franchises granted by the parent company or from competing sandwich makers controlled by the franchisor.
  • No financing: Another downside of “the sandwich of sandwiches” maker is the lack of financing. Jimmy John’s does not offer direct or indirect financing to would-be franchisees. It also doesn’t guarantee a franchisee’s note, lease, or obligation.
  • Higher franchise fee: To start a Jimmy Johns franchise, you need a franchise fee of at least $35,000 and $200,000 in liquid capital. This franchise fee is on the higher side as compared to its rivals like Panera Bread, and this can put off interested franchisees.
  • Strict requirements: The Jimmy John’s franchise has some of the most stringent franchise requirements. For instance, they are very strict on the location of the restaurants and the uniforms for staff. This may not be appealing to would-be franchisees.

How to apply

1. Initial Inquiry and Research

  • Start by reaching out to Jimmy John’s through their official franchise website to express your interest in opening a franchise.
  • Review the Franchise Disclosure Document (FDD) provided by Jimmy John’s, which details investment requirements, training, support, and other essential information.

2. Discuss with Franchise Experts

  • After your initial inquiry, you will receive a call from one of Jimmy John’s franchise experts to go over some details about the sub sandwich franchise investment.
  • Use this opportunity to ask questions and clarify any doubts regarding the franchise process.

3. Engage with Existing Franchisees

  • Jimmy John’s encourages potential franchisees to talk to current franchise owners to hear their experiences and gain insights into the operations and business model.
  • This step is crucial for understanding the real-world application of Jimmy John’s franchising model and its potential challenges and rewards.

4. Visit Headquarters

  • Plan a visit to Jimmy John’s headquarters to meet key members of the leadership team.
  • This visit is an excellent opportunity to learn more about the training and support you can expect as a franchisee and to ask any final questions you might have.

5. Site Selection and Approval

  • Once you’ve decided to proceed, a real estate manager will assist you in finding the perfect location for your franchise, considering market demographics, competition, and other factors.
  • The site selection process involves close collaboration with Jimmy John’s real estate team to ensure the chosen location aligns with brand standards and market needs.

6. Construction and Design

  • After finalizing the location, Jimmy John’s construction team will support you in building, remodeling, or relocating your store.
  • This step includes assistance with interior design, selecting contractors, and ordering equipment to ensure your store reflects the Jimmy John’s brand.

7. Comprehensive Training Program

  • Participate in Jimmy John’s franchise training program, which includes a combination of classroom instruction and in-store management training.
  • This comprehensive training covers everything from creating menu items and hiring staff to managing food costs and planning for growth

Disclaimer

Disclaimer: This content has been made for informational and educational purposes only. We do not make any representation or warranties with respect to the accuracy, applicability, fitness, or completeness of the information presented in the article. You should not construe any such information or other material as legal, tax, investment, financial, or other professional advice. Nothing contained in this article constitutes a solicitation, recommendation, endorsement, advertisement, or offer to buy or sell any franchises, securities, or other financial instruments in this or in any other jurisdiction in which such solicitation or offer would be unlawful under the franchise and/or securities laws of such jurisdiction.

All content in this article is information of a general nature and does not address the detailed circumstances of any particular individual or entity. Nothing in the article constitutes professional and/or financial and/or legal advice, nor does any information in the article constitute a comprehensive or complete statement of the matters discussed or the law relating thereto. You alone assume the sole responsibility of evaluating the merits and risks associated with the use of any information or other content in this article before making any decisions based on such information or other content.

0