Jimmy John's 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
$361,000 - $674,000
Royalty fee
6.00%

Jimmy John's: Redefining Sandwich Excellence with Speed and Freshness

Jimmy John's, a popular sandwich chain, was established in January 1983 by Jimmy John Liautaud in Charleston, Illinois, a vibrant college town. Initially offering a straightforward menu of four sandwiches, the brand has since diversified its offerings significantly. Jimmy John's sets itself apart from other sandwich shops with its dedication to using fresh ingredients, including hand-sliced meats and freshly baked bread.

The brand gained recognition for its speedy delivery service, a unique selling point that mitigated its original, less-than-ideal location near the campus. This emphasis on both convenience and quality has been a cornerstone of Jimmy John's success and expansion over the years.

In 1994, Jimmy John's began franchising, launching its first franchise in Eau Claire, Wisconsin. This move was part of a strategic plan to expand the brand through franchising, a strategy that has been highly effective.

Today, Jimmy John's headquarters is in Atlanta, Georgia, under the umbrella of Inspire Brands, which acquired the company in October 2019. This acquisition has provided Jimmy John's with additional resources to support its growth, all while upholding its commitment to quality and exceptional customer service.

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
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 (including Computer/Point-of-Sale System) $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 Estimated Initial Investment (excluding real estate purchase costs) $361,200 - $674,200

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Number of units

2024
Franchised units

2,616

2,597

2,604

Company-owned units

41

40

40

Total units

2,657

2,637

2,644

Franchise Disclosure Document

Training 

Jimmy John’s provides a comprehensive training program to ensure franchisees are fully equipped to run their restaurant effectively. Here's an overview of the training offered:

  1. Initial Training and Assistance:
    • Prior to opening, the Operations Partner and on-site managers must complete an initial training program.
    • If additional or repeat training is deemed necessary by the Operations Partner, it can be arranged for an additional fee.
  2. Ongoing Training:
    • The franchisor may require periodic training courses for the Operations Partner and/or previously trained managers throughout the franchise term.
    • Franchisees may also be required to attend an annual meeting for all Jimmy John's Restaurant franchisees.
  3. New Manager Training:
    • Newly hired or additional on-site managers during the franchise term may need to complete the franchisor’s current initial training and apprenticeship programs.
    • The franchisee is responsible for covering all travel and living expenses incurred during training.
  4. District Manager Training:
    • Franchisees or their affiliates owning three or more Jimmy John's Restaurants must appoint a District Manager.
    • The District Manager must complete all Certified Manager training, including a three-week initial training and a four-week apprenticeship program.

Territory Protection

Franchisees have the chance to develop and manage multiple Jimmy John's Restaurants within a designated area known as the "Territory," as specified in the Development Rights Agreement. This Territory is typically defined by cities or political subdivisions and is determined by factors such as the number of restaurants the franchisee commits to developing, local demographics, and site availability.

It's important to understand that the Territory does not guarantee exclusivity. Franchisees do have delivery rights within their Territory, but they are not permitted to use other distribution channels to make sales outside their designated locations.

There are exceptions to the exclusive right to establish and operate Jimmy John's Restaurants within the Territory, particularly for locations that meet specific financial, experience, or organizational standards set by the location's owner or manager.

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