Jimmy John’s is widely recognized as one of the most successful and popular sandwich franchises in the United States.
Founded by Jimmy John Liautaud in 1983, this renowned franchise now has thousands of locations across 43 states.
For anyone considering operating their own business, a Jimmy John’s franchise could offer huge potential growth prospects and lucrative returns.
Even better, if you have experience in the food service industry, you could be just the right candidate to take on a Jimmy John’s franchise.
As with any business venture, there are several things to consider before investing in a Jimmy John’s franchise.
Read on to learn all you need to know about the franchise and how you can get started.
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About the History Of Jimmy John’s
Jimmy John’s Franchise is an American sandwich franchise chain that has gained international recognition for its fast delivery service and out-of-the-box marketing campaigns.
Owned by Inspire Brands, a private equity firm, the franchise is widely regarded as one of the most successful and popular in the country.
Jimmy John’s success can largely be attributed to its motto, “Freakishly Fast,” which emphasizes speedy delivery times of no more than five minutes.
The chain also offers customers made-to-order sandwiches in as little as 30 seconds, further emphasizing its commitment to speed and convenience.
The chain mainly offers delicious deli sandwiches, freshly baked bread, and other freshly prepared ingredients.
It also offers various catering options as well as sides like chips, cookies, and soups.
As a franchise owner, you will benefit from Jimmy John’s established brand visibility, excellent customer service, and consistent quality food.
Furthermore, the chain boasts some of the best operations in the industry, and its franchising model allows entrepreneurs to pursue their dreams.
Also Read: How Much Does A Jimmy John’s Owner Make?
Jimmy John’s Franchise History
The history of Jimmy John’s dates all the way back to 1983 when 19-year-old Jimmy John Liautaud opened his first sandwich shop in Charleston, Illinois.
Jimmy’s only other option at the time was joining the military, but he decided to take a chance and open a sandwich shop instead, with a menu of four sandwiches.
Despite limited funds and resources, the sandwich shop proved to be a success, and Jimmy was able to make a profit in his first year of operations.
Jimmy John’s flourished throughout the late 80s and early 90s, with two additional shops being opened.
In 1994, Jimmy John’s began franchising, and the chain quickly grew in popularity. The franchise enjoyed massive success throughout the decade, but shortly after 2000, Jimmy John’s stopped franchising for a brief period since the founder wanted to take some time to assist subpar-performing stores.
Fortunately, it didn’t take long for the franchise to get back on its feet, and by 2010 there were more than 1,000 Jimmy John’s locations nationwide.
In 2016, a majority stake of the chain was acquired by Roark Capital Group in a deal worth $2.3 billion.
In 2019, Inspire Brands, an American holding company, acquired the entire chain for an undisclosed amount.
Today, Jimmy John’s has more than 2,700 locations across 43 states – with 98% of those being franchised stores.
It is one of the most well-known sandwich chains in the nation, offering customers made-to-order sandwiches in as little as 30 seconds.
Jimmy John’s Franchise Model
| Initial Investment | $316,100-$558,600 |
| Franchise-Fee | $35,000 |
| Royalty-Fee | 6% |
| Liquidity | $200,000 |
| Estimated Outlets | 2800 |
Interested In Jimmy John’s Franchise?
How Much Does It Cost to Open a Jimmy John’s Franchise
Opening a Jimmy John’s franchise requires a substantial financial investment, but it also offers the potential for a lucrative return on that investment.
The franchise fee for a single store is between $30,000 and $35,000.
This fee covers the cost of the initial training and equipment, as well as the rights to use the Jimmy John’s brand name and logo.
However, most new franchisees will need to invest in additional costs such as equipment and supplies, signage, promotional materials, real estate rentals, and more.
The total investment range for opening a Jimmy John’s franchise ranges from approximately $316,100 to $558,600.
This figure covers the initial franchise fee plus additional costs associated with opening a new store.
In addition to the upfront costs, prospective franchise owners should be aware of ongoing fees related to owning and operating a Jimmy John’s franchise.
These expenses include an ongoing royalty fee of 6% of gross sales and an advertising fee of 4.5% of gross sales.
Jimmy John’s also requires its franchisees to have a sufficient net worth to open and operate their stores — the current minimum net worth requirement is $1 million.
Ideal Candidates for Jimmy John’s
- Manage Multi-unit development
- Strong business management experience
- Retail management expertise
- Leadership qualities
- Willing to learn
Jimmy John’s Franchise Requirements
Like any franchise, there are certain requirements that prospective franchisees must meet to open a Jimmy John’s.
Firstly, a Jimmy John’s franchisee must have a minimum net worth of $1 million.
Additionally, they must also have liquid capital of at least $200,000 in order to cover the initial startup costs associated with opening a new store.
Having experience leading teams and managing successful businesses is a must for potential franchisors since running a Jimmy John’s location requires strong management skills.
Moreover, potential candidates must possess an entrepreneurial spirit and be highly competitive to keep up with other sandwich shops in the area.
The size of the store is also important – Jimmy John’s stores typically range from 800-1800 square feet, depending on the location.
For example, locations near busy metropolitan areas may need larger stores, while those located in smaller towns may be able to get away with smaller spaces.
Franchises must also have 1-3 certified managers onsite to comply with the company’s standards, 6-8 delivery drivers, and 10-15 employees for making sandwiches in the store.
In addition to these requirements, potential franchisees should be committed to being part of their local communities.
This includes participating in local events, partnering with local businesses, and giving back to the community through charitable efforts.
Jimmy John’s Franchise Training and Support
Jimmy John’s is committed to providing its franchisees with the necessary tools and resources to successfully open and operate their stores.
The company offers a comprehensive 4-week training program that provides both classroom and hands-on, in-store instruction for new franchise owners.
In addition, Jimmy John’s also has certified training stores in 24 cities across the United States.
These stores allow potential franchisees to get first-hand experience of what running a Jimmy John’s is like before opening their own location.
Within 48 hours of signing on as a new franchisee, a real estate manager will reach out to discuss construction aspects such as the location size, store design, equipment specifications, signage requirements, and more.
The company also provides assistance with marketing efforts such as promotional materials, website design, and local store marketing.
Jimmy John’s also has a proprietary point-of-sale system designed specifically for the company’s stores.
This allows franchisees to track sales, manage inventory, order supplies, and more from one central location.
In addition, the company has an opening specialist that guides how to get up and running quickly.
Finally, Jimmy John’s also has a regular Field Sales Force team that visits each franchise location several times per year to provide support and ensure operations are running smoothly.
Jimmy John’s Franchise Terms of Agreement & Renewal
The initial agreement for a Jimmy John’s franchise is 10 years and can be renewed for an additional 10-year term with the company’s approval.
To be eligible for renewal, a franchisee must meet all the terms and conditions of their original agreement and remain in good standing with the company.
Jimmy John’s requires that its franchises maintain certain standards such as adherence to all local, state, and federal regulations; proper staffing; keeping up to date on food safety protocols; adhering to brand standards; and providing excellent customer service.
Failure to comply with any of these requirements can lead to disciplinary action from the company, including suspension or termination of a franchise agreement.
In addition to renewing an existing franchise, Jimmy John’s also offers qualified owners the opportunity to acquire one successor franchise during their original 10-year period.
To do so, they must submit an application that includes documented evidence of their financial stability as well as proof of meeting all requirements outlined in their original agreement.
Jimmy John’s Franchise Obligations and Restrictions
Jimmy John’s franchisees must comply with all federal, state, and local regulations to remain in good standing with the company.
This includes maintaining a safe and sanitary place of business as well as complying with all labor and employment laws.
Franchisees are also responsible for providing their employees with appropriate training and upholding brand standards.
Franchisees must also adhere to Jimmy John’s food safety protocols, which include implementing specific processes for handling raw ingredients, properly washing hands between tasks, and following proper temperature control guidelines.
Additionally, they must always use fresh ingredients when making sandwiches and adhere to the company’s strict quality standards.
Franchisees are expected to provide excellent customer service and follow the policies set forth in their contract, such as keeping accurate records of their sales transactions.
Franchisees are also expected to maintain cleanliness in their restaurant at all times, keep up on the maintenance of equipment, adhere to brand guidelines regarding uniforms and signage, stay current on inventory levels, and ensure that all delivery drivers are properly trained and licensed.
Jimmy John’s Franchise Failure Rate
Jimmy John’s has a very low franchise failure rate, estimated to be just below 15%.
This impressive rate is due to the company’s well-developed systems and guidelines that help franchisees succeed.
The company provides franchisees with an extensive training program encompassing topics such as sandwich preparatory operations, store management, customer service, food safety protocols, and more.
This ensures that all franchise locations have a solid foundation for success. A key factor in their success is the support provided by Jimmy John’s corporate team.
They provide assistance with financial planning and analysis, operations, marketing and advertising, customer service, and more.
Jimmy John’s Franchise Gross Revenue
Jimmy John’s franchise owners can expect to generate an average annual gross revenue of $851,969–$1,034,580.
This amount can vary significantly depending on factors such as store size and location.
Jimmy John’s franchises have a relatively high-profit margin of 15%, which means that you may recoup the total investment for opening a new store in as little as 5.5 years.
Due to the chain’s well-known brand name and efficient operations, the estimated payback period is much shorter than other franchising opportunities.
Franchisees benefit from Jimmy John’s strong customer loyalty and consistent food quality, which create a rewarding business opportunity with plenty of potential for growth and expansion.
Furthermore, the chain offers competitive pricing for customers, allowing franchise owners to remain competitive in the market without sacrificing their profits.
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Jimmy John’s Franchise Financial Assistance
Jimmy John’s does not offer to finance directly to prospective franchisees.
However, the company has put together a list of preferred lenders that can provide financial assistance for those who qualify.
These lenders have experience working with franchise businesses and understand the unique needs of this type of business.
To qualify for financing, prospective franchisees must have adequate capital, strong credit scores, and a solid business plan.
Applicants must also meet certain minimum net worth requirements in order to be considered for financing.
Jimmy John’s is an approved SBA (Small Business Administration) Franchise and allows prospective franchisees to use the SBA Franchise Express program as part of their loan application process.
This program helps small business owners secure access to capital by providing them with a streamlined loan application process and access to specialized SBA-backed lenders.
Jimmy John’s Comparison
| Company | Jimmy John’s | Applebee’s |
|---|---|---|
| Founded In | 1993 | 1980 |
| Initial Investment | $316,100-$558,600 | $2,009,038-$8,267,250 |
| Franchise-Fee | $35,000 | $35,000 |
| Total Outlet | 2800 | 1700 |
| Annual Revenue | 1.2 Billion | $2.4 Million |
Frequently Asked Question
What is the most demandable Jimmy John's sandwich?
Turkey Tom is the most demandable and famous sandwich of Jimmy John’s.
When it comes to Jimmy Johns, how long is too long?
Jimmy John’s only delivers five minutes from the store.
Is Jimmy John’s a franchise
Yes, Jimmy John’s is a restaurant franchise that features gourmet deli sandwiches, freshly baked bread, and ancillary other food and beverage products.
How much does a Jimmy John’s franchise cost?
Opening a Jimmy John’s franchise requires an investment of $316,100-$558,600 and an additional $35,000 as an initial franchise fee.
Who is the owner of Jimmy Johns?
Jimmy John Liautaud is the founder and owner of Jimmy John’s sandwich shops. He started the company in 1983, when he was just 19 years old.
After opening his first store in Charleston, Illinois, he quickly grew the business and began franchising in 1994.
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.