Jason’s Deli Franchise FDD, Costs & Fees (2024)

KEY FRANCHISE STATS

All you need to know about this franchise in a snapshot

Initial franchise fee
$35,000
Investment required
$3,435,000 - $5,069,000
Royalty fee
4.00%

Jason's Deli: Leading the Way in Health-Conscious Fast-Casual Dining

Jason's Deli stands out in the fast-casual dining scene, renowned for its dedication to providing healthy and flavorful meals. Founded in 1976 by Joe Tortorice, Pat Broussard, Pete Verde, and Rusty Coco in Beaumont, Texas, the brand has seen significant growth. Remarkably, the original deli in Beaumont still operates, showcasing the brand's enduring legacy and commitment to quality.

The company began franchising in 1988, a move that spurred its extensive growth. Jason's Deli sets itself apart by prioritizing the healthiness of its menu items. In 2005, it was a pioneer in removing artificial trans fats from its offerings and continued to improve its menu's nutritional profile.

Jason's Deli has since eliminated processed MSG, high-fructose corn syrup, dyes, and artificial colors and flavors, ensuring their food is both delicious and nutritious. This health-first philosophy is a core part of Jason's Deli's brand, distinguishing it in the fast-casual market.

Maintaining its family-owned and community-focused roots, Jason's Deli emphasizes high-quality ingredients and the health benefits of its menu. This strategy not only meets the increasing consumer demand for healthier eating options but also builds a loyal customer base that appreciates the brand's dedication to wellness and community involvement.

Initial investment

Here's what you would need to invest if you were to start this franchise. These costs are provided by the franchisor in the Franchise Disclosure Document.

Type of Expenditure Amount
Initial Franchise Fee $35,000.00
Development Fee $17,500 per additional Deli
Travel and Living Expenses while Training $15,000.00
Build out or Remodeling of 4,500-5,000 sq. ft. premises $950,000.00 to $1,600,000.00
Fabricated Equipment $460,000.00
Furniture $32,333.00
Small Wares $21,000.00
Signage $38,000.00 to $100,000.00
Administrative and Miscellaneous: Pre-Opening Advertising, Deposits (rent, utilities, and sales tax) $5,000.00 to $20,000.00
Licenses $10,000.00
Interim Interest $70,000.00 to $125,000.00
Pre-opening Training Personnel from Existing Delis, if applicable Varies
Insurance $4,500.00 to $15,000.00
Online Ordering Set-Up Costs and Monthly Hosting $450.00 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 $60.00 monthly per store
System Email $150.00 per user account per year
Initial Inventory $32,925.82
Additional Funds – 3 Months $20,000.00 to $35,000.00
Total $3,434,727.64 to $5,068,927.64

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Number of units

2024
Franchised units

82

82

83

Company-owned units

165

162

160

Total units

247

244

243

Franchise Disclosure Document

Training 

Comprehensive Training Program: Jason's Deli provides an extensive training program for its franchisees.

Attendance Requirements: A minimum of five individuals must complete the initial training. This includes the franchisee's Operating Principal, the General Manager, and between two to four members of the management team, depending on the size of the Deli.

Training Content: The program covers essential areas such as sales techniques, product knowledge, accounting procedures, food preparation, and operations management.

Location and Duration: Training takes place at designated Jason's Deli locations. Management Staff must start their training at least five weeks before the opening of the Deli, with the entire training program spanning a minimum of thirteen weeks.

Ongoing Training: Jason’s Deli may also require key trainees to participate in refresher courses, seminars, and additional training sessions.

Training Expenses: Franchisees are responsible for all personal expenses related to training, including costs for transportation, lodging, meals, wages, and employee benefits.

Territory Protection

Exclusive Territory: Franchisees are not granted exclusive territories unless they enter into a Development Agreement. Under such an agreement, Jason's Deli will not establish or franchise another location within the franchisee's designated option area during the term of the agreement. The option area is determined based on the market's capacity for new stores.

New Market Strategy: In new markets, Jason’s Deli prioritizes selling franchises to multi-unit operators. Therefore, a Development Agreement, which includes exclusive territory rights, is mandatory. The option area is outlined in an attachment to the Development Agreement and typically encompasses a metropolitan area, county, or other political subdivision.

Adherence to Development Schedule: To maintain territorial rights, franchisees must adhere to a development schedule agreed upon with Jason’s Deli. This schedule requires opening the first Deli within 12 months of signing the Development Agreement, with subsequent Delis opened according to the established timeline.

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