Jasons Deli
Jason's Deli offers a variety of deli products, sandwiches, and salads in a New York-style setting. Known for its extensive salad bar and catering services, it operates in the quick-service restaurant sector.
About Jasons Deli
Jason's Deli is an American chain of fast casual restaurants founded in 1976 in Beaumont, Texas, by Joe Tortorice, Jr. There are currently over 245 locations in 29 states. The menu includes sandwiches, wraps, baked potatoes, pasta, soups, salads, and desserts, as well as catering items such as boxed lunches.
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Jasons Deli franchise FAQ
How much does it cost to open one — the total initial investment?
The total initial investment necessary to begin operation of a Jason's Deli franchise is between $1,719,655.82 and $2,529,255.82 [p.1]. This includes an initial franchise fee of $35,000.00 that must be paid to the franchisor or affiliate(s) [p.1].
What is the initial franchise fee?
The initial franchise fee for a single-deli Franchise Agreement is $35,000.00 [p.11]. For Developers of multiple franchises, the initial franchise fee is payable as described in the FDD but is not specified here exactly. This fee is nonrefundable except under certain conditions mentioned on page 11.
What are the ongoing royalty and advertising fees?
The ongoing royalty fee is 4% of franchisees' reported gross sales, less discounts and sales tax collected, as specified in [p.111], [p.87], and [p.64]. There are also mandatory minimum payments for royalties and advertising contributions that must be made regardless of sales levels, according to [p.5]. The advertising expenses, which are expensed as incurred, were $3,166,914 in 2024 and $2,807,887 in 2023 for the franchisor, as detailed in [p.61].
How long is the initial franchise agreement, and can I renew it?
This isn't specified in the excerpts.
Can I sell or transfer my franchise, and what does that require?
According to the FDD, a franchisor can refuse to permit the transfer of ownership of a franchise except for good cause. Good cause includes but is not limited to unspecified factors [p.234]. This means you would need approval from the franchisor to sell or transfer your franchise, and they have the right to deny such requests based on their discretion regarding what constitutes good cause.
On what grounds can the franchisor terminate the agreement?
The franchisor can terminate the franchise agreement if there is a default by the franchisee that constitutes 'reasonable cause' as defined under the Virginia Retail Franchising Act or Virginia law [p.242]. Additionally, the franchisor may terminate the franchise prior to expiration for good cause, such as the failure of the franchisee to comply with lawful provisions of the franchise agreement after being given written notice and a reasonable opportunity to cure [p.234].
What financial requirements — net worth and liquid capital — do I need to qualify?
The franchisor's most recent financial statements must show a net worth of at least $100,000.00 if they are unaudited for the franchisee to avoid certain financial protections like escrow or surety bonds being arranged by the franchisor [p.235]. The financial requirements for the franchisee include maintaining sufficient working capital to cover various operating needs such as lease deposits and business license fees [p.139], but specific net worth or liquid capital requirements for the franchisee are not detailed in these excerpts.
Do I get an exclusive or protected territory?
Based on the provided excerpts, you do not receive an exclusive territorial right without executing a Development Agreement. Without such an agreement, you may face competition from other Jason's Deli outlets operated by the franchisor or other franchisees in your area [p.218, p.31, p.32].
What training and ongoing support does the franchisor provide?
The franchisor provides two weeks of training to each franchisee's location, which includes payroll cost, benefits, payroll taxes, travel, food, lodging, and any other support costs for a set number of the franchisors' dedicated training staff and supervision. This training is part of the initial franchise fee determined by the size and nature of the location being licensed. [p.111]
How many franchised outlets are there, and how many have closed or been terminated?
This isn't specified in the excerpts.
Does the franchisor share any financial performance or earnings information?
The franchisor does not make any representations about future financial performance or past financial performance of company-owned or franchised outlets, and it authorizes no such representations from its employees or representatives [p.41]. However, if you are purchasing an existing outlet, the franchisor may provide actual records of that outlet's performance [p.41]. Additionally, the franchise agreement does not include any promises or commitments regarding sales, profits, or earnings except as expressly stated in the Franchise Agreement and related documents [p.162].
What am I restricted to selling, and where must I buy supplies?
You are required to purchase or lease certain equipment, services, supplies, fixtures, inventory, computer software, and other items necessary to open and operate the Deli from designated and approved suppliers. However, this does not specify that you must exclusively sell any particular products; the restrictions mainly pertain to sourcing essential business components rather than selling limitations. [p.19]