Jimmy John's Franchise For Sale - Restaurant
Jimmy John's Franchise Opportunities
Jimmy John's Franchise, LLC is an American franchised sandwich restaurant chain, specializing in delivery. It was founded by Jimmy John Liautaud in 1983 and is headquartered in Champaign, Illinois. In 35 years, the company has grown to more than 2,800 locations in all states except Alaska, Connecticut, Hawaii, Maine, New Hampshire, Rhode Island and Vermont. Jimmy John's has opened approximately 200 locations per year over the past three years. As of 2014, 98% of the locations were franchise-owned.
As of March 2017, Jimmy John's has almost 3,000 stores with plans for expansion up to 5,000 and beyond.
How much does Jimmy John's franchise cost?
Jimmy John's has the franchise fee of up to $35,000, with total initial investment range of $329,500 - $557,500.
Initial investments: $329,500 - $557,500
Net-worth Requirement: $300,000
Liquid Cash Requirement: $80,000
Initial Franchise Investment
| Name of Fee | Low | High |
|---|---|---|
| Initial Franchise Fee | $30,000 | $35,000 |
| Real Estate/Rent (1 month) | $2,500 | $8,000 |
| Security Deposit | $2,500 | $2,500 |
| Leasehold Improvements | $100,000 | $200,000 |
| Furniture, Fixtures, Signage, and Equipment (including Computer/ Point-of-Sale System) | $107,500 | $166,000 |
| Architect | $5,000 | $10,000 |
| Office Equipment | $2,500 | $2,500 |
| Utility Deposits | $1,000 | $2,000 |
| Opening Inventory and Supplies | $6,000 | $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 (first 3 months) | $50,000 | $75,000 |
| ESTIMATED TOTAL * | $329,500 | $557,000 |
* The estimated initial investment range excludes real estate purchase costs.
Ongoing Fees
Initial Franchise Fee: $35,000
Ongoing Fee: 6%
Ad Royalty Fee: 4.5%
Jimmy John's Franchise Profit
A Jimmy John's Gourmet Sandwiches franchise is a great investment opportunity that is sure to bring promising earnings. The brand started franchising in 1993 and today has numerous locations. On average, the estimated annual profit for a Jimmy John's franchise is around $1.2 million, and a franchise owner can expect to earn between $90,000 and $280,000. The initial cost of acquiring and running a franchise can be rather sizable, but the return on investment is solid. If you want to open a restaurant business, then Jimmy John’s is the right choice for you.
Support Options
On-The-Job Training: 119.5 hours
Classroom Training: 16 hours
Additional Training: 7 weeks for general managers; 3 weeks for assistant managers
Number of Employees Required to Run: 20
Jimmy John's Franchise Info: https://www.jimmyjohns.com/franchising
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Jimmy John's Franchise Other Fees
| Type of Fee | Amount |
|---|---|
| Royalty | 6% of Restaurant’s weekly Gross Sales. |
| Advertising and Development Fund | Up to 4.5% of Restaurant's weekly Gross Sales (currently the full 4.5%) |
| Cooperative Advertising Programs | Up to 2% of Restaurant's Gross Sales. |
| Successor Franchise | $2,500 |
| 1-week or 2- Week Training Program for New, Additional, or Repeat Trainees | Currently $1,500 (or $2,000 for expelled trainee re-attending); the franchisor may increase this fee and charge up to $5,000 |
| New Training and Additional Guidance or Support | Currently $400 per person per day plus expenses if provided at the franchisor’s location; currently $600 per person per day plus expenses if provided at the franchisee’s Restaurant; the franchisor may increase this per-person, per-day fee and charge up to $1,000 |
| Area Manager Training | Currently $2,000; the franchisor may increase this fee and charge up to $5,000 |
| Transfer | $7,500 or $12,500 |
| Product and Service Purchases | Varies. |
| Testing | Costs of Testing (amount of which depends on circumstances, including supplier's location, testing required, and item involved). |
| Relocation | $2,500 plus costs and expenses. |
| Computer Systems, Maintenance and Support | Cost of service. |
| Confidential Area Manager Manual | $500 |
| Franchisee Convention | Up to $500 |
| Regional Advisory Council | Council Assessments. |
| Audit | Cost of inspection or audit (amount of which depends on circumstances and extent of the franchisee’s noncompliance). |
| Interest | Lesser of 1.5% per month or highest commercial contract interest rate law allows. |
| Non-Approved Restaurant Opening | $2,500 for each day Restaurant is open without the franchisor’s approval. |
| Non-Compliance | $250 - $1,000 for deviations from operational requirement / Brand Standard. |
| Fee for Hiring the Franchisor’s Affiliate’s, or Franchisee’s Management Employees after Violating Non-Recruitment / Non-Solicitation Restriction | $50,000 per occurrence. |
| Unauthorized Advertising Fee | $1,000 per occurrence. |
| Late Fee | 10% of original amount due but not paid on time. |
| Confidential Operations Manual | $500 |
| Management Fee | $600 per person per day (plus costs and expenses). |
| Costs and Attorneys’ Fees | Will vary under circumstances and depend on nature of the non-compliance. |
| Indemnification | Will vary under circumstances and depend on nature of third-party claim. |
| Liquidated Damages | If the franchisor terminates the Franchise Agreement with cause or franchisees terminate the Franchise Agreement without cause, franchisees must pay the franchisor, within 15 days after the termination's effective date, liquidated damages equal to the product of (a) the Royalties you were obligated to pay the franchisor on the Restaurant's Gross Sales during the previous 364 days the Restaurant operated (b) multiplied by 3 (unless there are less than 3 years remaining in the franchise term at the time of termination, in which case the Royalties will be multiplied by the number of years remaining). |
| Maintenance Cost Reimbursement | $600 per day plus costs and expenses. |
| Customer Complaint Reimbursement | Out-of-pocket cost reimbursement. |
| Insurance Reimbursement | Out-of-pocket cost reimbursement. |
| Tax Reimbursement | Out-of-pocket cost reimbursement. |
| De-identification Reimbursement | Out-of-pocket cost reimbursement. |
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