Franchise: Jimmy John’s
Franchising Since: 1993
Headquarters: Champaign, Ill.
Number of Units: 2,259
About the Franchise
With a limited, focused inventory, what could be easier? Everything about Jimmy John’s — from the menu to the marketing to the franchise management — is about keeping it simple.
Jimmy John Liautaud founded this dine-in sandwich shop in 1983 at age 19. Today, Jimmy John’s franchisees bake bread at each store every day, and every sandwich is made fresh to order in 30 seconds.
RELATED: TOP RESTAURANT FRANCHISES TO OWN
Jimmy John’s actively seeks highly qualified individuals to become franchisees. Prior business experience, coupled with personal financial qualifications, individual motivation and a track record of success are important factors in our evaluation process.
Financial Assistance
The franchisor does not offer direct or indirect financing. The franchisor does not guarantee note, lease or obligation. Financing is to be secured through third-party lending sources.
Term of Agreement and Renewal
The term of the franchise agreement is 10 years. The renewal term of the franchise is 5 years.
Breakdown of Costs
The following information is compiled from the Franchise Disclosure Document of Jimmy John’s (2015). The FDD will provide you with in-depth information regarding the costs and expenses you can plan to incur when developing a Jimmy John’s franchise.
Initial Franchise Fee: $30,000 to $35,000
If you are a franchisee in good standing and buy a second or additional franchise, the initial franchise fee for that additional unit currently is $30,000.
Real Estate/Rent (1 month): $2,500 to $8,000
Jimmy John’s Restaurants can be located in strip shopping centers, shopping malls, free-standing units and other venues in downtown commercial areas and in suburban areas.
Security Deposit: $2,500 to $8,000
Leasehold Improvements: $100,000 to $200,000
Leasehold improvement costs — including floor covering, wall treatments, counters, ceilings, painting, window coverings, electrical, carpentry, and similar work, and contractor’s fees — depend on the site’s condition, location, and size; the demand for the site among prospective lessees; the site’s previous use; the build-out required to conform the site for your Restaurant; and any construction or other allowances the landlord grants.
Furniture, Fixtures and Equipment: $105,000 to $155,000
This includes refrigerators, freezers, ovens, point-of-sale system, computer, stereo, telephones, signage and (if directed) a video security system.
Architect: $5,000 to $10,000
Office Equipment: $2,500
Utility Deposits: $1,000 to $2,000
Opening Inventory and Supplies: $6,000
Grand Opening Marketing: $3,000 to $5,000
Jimmy John’s does not require you to conduct a Restaurant “grand opening” marketing program, either before or after your Restaurant opens. However, if you choose to have this type of event, the franchisor recommends that you schedule it for 90 days to 120 days after the Restaurant opens and spend $3,000 to $5,000 for newspaper and radio advertising and promotional items.
Training Expenses (Out-of-pocket costs for 2 people): $6,000 to $15,000
Franchisor will provide 3 weeks of training at a designated training facility of choice in Illinois and/or at an operating Jimmy John’s Restaurant. Franchisee and at least one of the on-site managers (which may include an Operations Partner) also must attend apprenticeship program, which is 4 weeks long.
Insurance: $7,500 to $12,500
The estimate contemplates insurance premium costs for 1 year.
Misc. Expenses: $2,000 to $10,000
This estimates the funds needed for professional advisors (like an attorney and accountant) and other miscellaneous expenses not addressed in this table.
Additional Funds (3 months): $50,000 to $75,000
ESTIMATED TOTAL (Excluding Real Estate Purchase Costs): $323,000 to $544,000
These figures are estimates in setting up a Jimmy John’s franchise and operating it for three months. It is possible to exceed costs in any of the areas above.
RELATED: HOW TO BUY A FRANCHISE
