Jimmy John’s is a well-known name in the food industry, and if you are thinking if this is a good investment opportunity or not, then we got you!
In this extensive guide, we answer how much does a Jimmy John’s franchise owner make, How much investment do you need, what is the profit-earning potential of this business and much more.
So make sure you go through this article till the end.
About Jimmy John’s
Jimmy John’s is a renowned American sandwich chain that was founded by Jimmy John Liautaud in 1983 in Charleston, IL.
Initially, Jimmy John’s menu consisted of only four sandwiches made with hand-sliced meat and fresh bread, but today you can find a number of options, including subs, beverages, combo meals, etc.
Owing to the taste of delicious and fresh sandwiches, Jimmy John’s started expanding rapidly, and in 1994 they opened their first franchised store in Eau Claire, WI.
Today Jimmy John’s franchise system has reached more than 3,000 locations and is one of the fastest-growing sandwich chain in the U.S.
If you want to start your own Jimmy John’s franchise, then you must have a net worth of $1M and liquidity of $200K.
So if you meet these basic requirements, then keep on reading to find out how much does a Jimmy John’s franchise owner make.
((https://www.jimmyjohns.com/about-us/history/))
Read Full Details About Jimmy John’s Franchise – Everything You Need To Know!
Jimmy John’s Key Investment Cost
| Franchise fee | $35,000 |
| Marketing fee | 6.5% |
| Royalty fee | 6.0% |
| Investment (mid-point) | $514,000 |
| Payback period | 4 years |
| Minimum net worth | $300,000 |
| Minimum liquid capital | $80,000 |
How Much Does A Jimmy John’s Franchise Owner Make?
The sales and revenue of Jimmy John’s Franchise may vary on the basis of location, operating expenses, service, advertisement expenses, etc.
However, on average, a Jimmy John’s franchise owner makes $874,845 in sales annually. This data is based on Jimmy John’s median yearly sales for non-drive-thru and drive-thru restaurants.
As per the FDD, drive-thru Jimmy John’s restaurants generate more revenue ($1,034,000) as compared to non-drive-thru restaurants ($834,000).
How Much Does Jimmy John’s Employee Earn?
According to ZipRecruiter, Jimmy John’s pays its employees a minimum of $11.33 an hour and a maximum of $21.88 an hour on average.
So a Jimmy John’s employee in an entry-level position earns $23,565 a year, and in a higher-level position earns $45,500 a year on average.
You should note that this is an average number, and Jimmy Joghn’s employee salary may vary slightly based on their department, locations, skills, position, etc.
Pros & Cons Of Jimmy John’s Franchise
Pros Of Jimmy John’s Franchise
- No prior experience is required.
- Highly profitable.
- Pre-opening training.
- Extensive ongoing support.
- Exclusive supplier relationships for quality ingredients.
- Superior brand recognition.
Cons Of Jimmy John’s Franchise
- No financing.
- No territory protection.
- High franchise fee of $30K-35K.
- Strict requirements.
Jimmy John’s Franchise Average Revenue & Profit
As already mentioned earlier, on average, Jimmy John’s franchise outlets make sales of $874,845 annually.
However, the FDD does not provide much information on the profit earned. So we had to do the calculation ourselves, and as per our research, we estimate that Jimmy John’s makes an average annual profit of $87,484 – $174,969 (with a profit margin of 10%-20%).
Compared to most other franchises that we have reviewed, this seems like a high-profit potential franchise opportunity.
Jimmy John’s Franchise Failure Rate
To find out the failure rate of Jimmy John’s let us have a look at the data shared in the table below:
| Outlet type | Year | Outlets at the Start of the Year | Outlets at the End of the Year | Net Change |
|---|---|---|---|---|
| Franchised | 2019 | 2759 | 2746 | -13 |
| 2020 | 2746 | 2659 | -87 | |
| 2021 | 2659 | 2616 | -41 | |
| Company-Owned | 2019 | 45 | 42 | -3 |
| 2020 | 42 | 41 | -1 | |
| 2020 | 41 | 41 | 0 | |
| Total Outlets | 2019 | 2804 | 2788 | -15 |
| 2020 | 2788 | 2700 | -88 | |
| 2021 | 2700 | 2657 | -43 |
As we can see from the table above, there has been a constant decline in the growth of Jimmy John’s for both franchised and company-owned outlets, which is a thing of concern and something that you should consider before buying this franchise.
Jimmy John’s Franchise Payback Period
To find out Jimmy John’s franchise payback period let’s do some calculations:
| AVERAGE INVESTMENT | $514,000 |
| AVERAGE REVENUE PER OWNER | $874,845 |
| AVERGAGE PROFIT PERCENTAGE | 10-20% |
| AVERGAGE PROFIT PER YEAR | $131,226 |
| AVERAGE PAYBACK PERIOD | 4 Years |
PAYBACK PERIOD = TOTAL INVESTMENT / PROFIT PER YEAR
= 514000/131226 = 3.9 = 4 Years based on median
The average investment for a Jimmy John’s Franchise is $514,000 and the average revenue per owner is $874,845.
With an average profit percentage of 10-20%, the average profit per year is $131,226.
This means that the average payback period for a Jimmy John’s Franchise is 4 years, as the total investment of $514,000 would be recouped within this period.
Facts About Jimmy John’s
- Jimmy John Liautaud started Jimmy John’s when he was just 19 years old.
- Jimmy wanted to start a hot dog stand really, but since his father was not willing to cash out more than $25k, he had to switch to selling sandwiches, which were a much cheaper option.
- Jimmy John’s has caused quite a few food-poisoning outbreaks.
- Since Jimmy didn’t have enough money for marketing, he prowled the streets loaded with sandwiches to hunt for hungry customers.
- Jimmy John’s freaky fast delivery has led to a few accidents, because of which they had to face a lawsuit.
- The add-ons on Jimmy John’s menu are free.
- Jimmy does not have much stake left in his company as he sold most of it to Roark Capital and Weston Presidio.
- You will never get a hot sandwich at Jimmy John’s as they never toast bread.
((https://www.mashed.com/129171/the-untold-truth-of-jimmy-johns/))
What Is Jimmy John’s Best Known For?
Jimmy John’s is one of the fastest-growing sandwich chains in the world, and they are best known for their delicious and fresh sandwiches.
They source fresh and high-quality ingredients from trusted suppliers to serve you the most delicious sandwiches.
Along with this, they prepare the bread daily and use hand-cut meat, which makes their flavor stand out from others.
Some of the most popular items in the Jimmy John’s menu are:
- Jimmy Cubano.
- Spicy East Coast Italian.
- The Pepe.
- Totally Tuna.
- Turkey Tom.
- Vito.
- Big John.
- Billy Club.
Is Jimmy John’s Franchise Profitable?
Jimmy John’s is definitely a profitable franchise to invest in, with annual profits ranging from $87,484 – $174,969 on average.
Even if we talk about the sales figure of Jimmy John’s, then between 2019-2021, there has been positive growth in it.
| Year | Drive-Thru | Non Drive-Thru | Total |
|---|---|---|---|
| 2019 | $752,372 | $685,759 | $711,460 |
| 2020 | $836,748 | $671,417 | $729,442 |
| 2021 | $1,034,580 | $851,969 | $874,845 |
Jimmy John’s Franchise Earning Potential
Since there has been constant positive growth in sales and even constant expansion of the Jimmy John’s franchise, we can conclude that the company’s demand is ever-growing.
With increased demand comes increased opportunity for sales and, thereby, profits. So we believe that Jimmy John’s has the potential to earn high profits in the future.
And if we look at the sales data, then in 2021, the lowest-performing franchised Jimmy John’s units made $186,570, and the highest-performing units made $2,585,567.
So on any given day, you are going to earn a good amount of profit from this franchise.
Wrap Up
After looking at the details of Jimmy John’s franchise closely, this is what we think:
Jimmy John’s is an in-demand and highly profitable business opportunity. In order to be eligible, you only need to have a net worth of $1M and liquidity of $200K, and no prior experience is needed.
The payback period of Jimmy John’s franchise is 4 years on average, so the investment of 355,900 – 671,400 seems worth it.
The only notable problem is the franchise failure rate of Jimmy John’s. Maybe you should discuss this with the franchisor and find out why Jimmy John’s outlets are closing down.
Apart from this, buying a Jimmy John’s franchise seems like a good business opportunity.
Frequently Asked Question
How much royalty and marketing fee does Jimmy John's charge?
Jimmy John’s charges royalty fees of 6% of gross sales and marketing fees of 6.5%.
Does Jimmy John's offer financing?
No, Jimmy John’s does not offer direct or indirect financing and does not guarantee a note, lease, or any other obligation.
How much time will it take before I open my Jimmy John's?
It will take 9-12 months on average right from you sign the franchise agreement to open your doors. However, it might even take longer depending on different factors.
Amit Gupta is the founder of DrFranchises – a digital marketing agency that helps brands rank better on Google Maps through local SEO strategies. Amit has over 11 years of experience in digital marketing, SEO, email marketing, and social media marketing. He’s also the owner of multiple franchises and has helped countless brands achieve success online. When he’s not working, Amit can be found playing with his dog.