Jimmy Johns
Jimmy Johns offers gourmet deli sandwiches and fresh-baked breads in its franchised restaurants. Known for quick service and customizable subs, it operates in the fast-casual dining sector.
About Jimmy Johns
Jimmy John's Franchise, LLC, commonly referred to as Jimmy John's, is an American multinational sandwich chain, headquartered in Champaign, Illinois. The business was founded by Jimmy John Liautaud in 1983. After Liautaud graduated from high school, his father gave him a choice to either join the military or start a business. Liautaud decided to start a hot dog business, which changed to sandwiches due to costs.
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Jimmy Johns franchise FAQ
How much does it cost to open one — the total initial investment?
The total initial investment necessary to begin operation of a JIMMY JOHN'S® Restaurant ranges from $366,200 to $728,200 (including initial real estate lease costs) as stated on [p.1]. This range covers the costs including the amount that must be paid to the franchisor or affiliate, but does not include additional expenses for developing a JIMMY JOHN'S® Restaurant at a Multi-Brand Location or any development fees for opening additional Restaurants.
What is the initial franchise fee?
The initial franchise fee varies based on different conditions. The standard initial franchise fee is $35,000 [p.28]. It can be reduced to $5,000 if you are a franchisee in good standing and agree to operate at a location previously operated by another franchisee that closed within the last year, or to $12,500 if you are not in good standing [p.28]. For Non-Traditional Locations, a pro-rated amount of $17,500 is due depending on the term granted [p.28]. Additionally, there is a successor franchise fee of $10,000 upon signing the Successor Franchise Agreement [p.201].
What are the ongoing royalty and advertising fees?
The ongoing royalty fee is based on 6% of a restaurant's sales [p.338]. There is no specific mention of an advertising fee percentage, but it is implied that there is an Advertising and Development Fund contribution which can be waived or reduced for certain Non-Traditional Locations [p.37].
How long is the initial franchise agreement, and can I renew it?
The initial term of the franchise agreement is generally 10 years, subject to certain conditions [p.338]. A franchisee may elect to renew the term prior to its expiration if certain conditions are met [p.338].
Can I sell or transfer my franchise, and what does that require?
This isn't specified in the excerpts. The FDD does not provide details on selling or transferring your franchise. However, it mentions that the franchisor can refuse to permit a transfer of ownership for good cause [p.74], which could include changes in employees or management [p.142]. For specific terms and conditions regarding transfers, you would need to refer to Item 16 of the FDD or directly contact the franchisor.
On what grounds can the franchisor terminate the agreement?
The franchisor can terminate the Franchise Agreement if any Other Franchise Agreement expires without renewal or terminates, or if the franchisee abandons or ceases to operate any Other Restaurant for any reason [p.196]. Additionally, the franchisor need not grant a successor franchise if the franchisee is not in full compliance with the agreement and brand standards on both specified dates [p.152].
What financial requirements — net worth and liquid capital — do I need to qualify?
This isn't specified in the excerpts. The provided FDD does not detail specific financial requirements such as net worth or liquid capital that a franchisee needs to meet for qualification.
Do I get an exclusive or protected territory?
No, you do not receive an exclusive territory [p.67]. You may face competition from other franchisees, as well as outlets owned by the company or other competitive brands controlled by them [p.67]. This isn't specified in the excerpts for non-territorial exclusivity.
What training and ongoing support does the franchisor provide?
The franchisor provides initial training and guidance under the franchise agreement, which may be intended for stand-alone brand restaurants [p.194]. Additionally, the franchisor can modify its training, staffing, and other similar requirements to address cross-trained employees at multi-brand locations [p.195]. However, the franchisee must ensure that all employees of the franchised restaurant are properly trained to operate it specifically [p.195]. This isn't specified in the excerpts for ongoing support beyond initial training.
How many franchised outlets are there, and how many have closed or been terminated?
There were 2,647 franchised Jimmy John's Restaurants operating in the United States at the end of 2024, but this number excludes 88 that first opened during 2024, 24 that were closed for extended periods, and 20 that operated at Multi-Brand Locations. Additionally, 43 franchised Jimmy John's Restaurants had their outlets terminated, canceled, or not renewed from January 1, 2024 to December 29, 2024 [p.79, p.92].
Does the franchisor share any financial performance or earnings information?
The franchisor shares actual, historical 'AUVs' (Average Unit Volumes) for specific groups of franchised Jimmy John's Restaurants as part of Item 19 in the Franchise Disclosure Document. However, this information does not include costs of sales, operating expenses, or other deductions necessary to determine net income. [p.79, p.81]
What am I restricted to selling, and where must I buy supplies?
You are required to sell only the items specified by the franchise agreement, which typically includes Trade Secret Food Products, Branded Products, and Permitted Brands. Additionally, you must use operating assets, services, and other items from designated and approved suppliers, which may be limited to the franchisor, certain affiliates, or other specified exclusive sources as outlined in [p.52] and [p.45].