Franchisor Stories
Franchise Deep Dive: Jimmy John's Franchise Costs, Fees, Profit and Data
With franchise growth almost as fast as its average sandwich-making-time, there is a reason Jimmy John’s is becoming a leader in the sandwich category.
LAST UPDATED:
May 22, 2023
FRANCHISE WEBSITE:
: https://www.jimmyjohnsfranchising.com/
NUMBER OF LOCATIONS:
2,657
REPORTED COST TO GET IN:
355,900 – $671,400
REPORTED ROI (Item 19):
$918,058 (2021 Annual AUV)
Jimmy John’s is a submarine sandwich franchise headquartered in Champaign, Illinois, known for its uniquely fast service, delivery and catering. Over the past 20 years, the franchise has become a leading player in the sandwich category, competing against industry behemoths like Subway, Jersey Mike’s and Firehouse Subs.
How Many Jimmy John's Locations Are There?
Jimmy John’s was founded in 1983 by Jimmy John Liautaud in Charleston, Illinois. After graduating from high school with few prospects, Liautaud’s father offered him two choices: either join the military or start a business. Liautaud chose business and his father lent him $25,000 to start a hot dog business, with the son owning 52% of the business and his father owning 48%. However, after figuring that a hot dog business would have more overhead, Liautaud chose to open a sandwich shop instead.
Liautaud’s sandwiches featured hand-sliced meats and fresh-baked bread. The concept was a hit. By the end of the first year, Liautaud’s sandwich business turned a profit. Two years later, in 1985, Liautaud had enough to buy out his father and become sole owner of Jimmy John’s.
Building on the success of the first location, Liautaud opened two more stores and expanded the menu. In 1994, Liautaud began franchising Jimmy John’s, and the first franchised location opened in Eau Claire, Wisconsin. By the early 2000s, Jimmy John’s had more than 100 locations in operation. Jimmy John’s grew rapidly over the next few decades, with 2,759 franchises at the start of 2019. This number fell to 2,616 by the end of 2021. In 2016, Roark Capital Group purchased a majority stake in the company. Just a few years later, in 2019, Roark sold Jimmy John’s to Inspire Brands for an undisclosed amount.
Jimmy John’s ranked No. 27 on Entrepreneur’s 2022 Franchise 500 list but fell to No. 83 in 2023. The company is 98% franchise-owned, with 800 franchisees running more than 2,600 locations across the U.S.
What Is the Jimmy John's Business Model?
Like any successful quick service restaurant (QSR) franchise, Jimmy John's business model is all about speed. With an impressive prep system perfected over the past three decades, Jimmy John’s aims to serve all guests in just 30 seconds. Bread is never more than four hours old and baked fresh every day.
Similarly, Jimmy John’s keeps its delivery areas small, so customers get their food fast and fresher. Over 35% of the franchise’s sales come from delivery, which is a major advantage in today’s post-pandemic, work-from-home culture.
Jimmy John’s restaurants typically have three certified managers for each location, six to eight delivery drivers and 10–15 hourly employees to make sandwiches
How Much Can Jimmy John's Franchise Owners Make?
These financial performance representations, taken from Jimmy John’s 2022 Franchise Disclosure Document (FDD), provide average unit volumes (AUVs) for specific groups of Jimmy John’s restaurants and specific time periods.
The financial performance representations in Parts 1, 2, 3 and 4 reflect the ongoing impact that COVID-19 and other factors have had on the AUVs of Jimmy John’s restaurants during Jimmy John’s 2021 fiscal year, from January 4, 2021 until January 2, 2022 (the “2021 Fiscal Year”).
- All 2021 Covered Restaurants
2021 Annual AUV: $922,442
Number and Percentage Exceeding Average: 927/44%
Highest Unit Volume: $2,585,567
Lowest Unit Volume: $186,570
Median Unit Volume: $871,944
- All 2021 Franchise-Covered Restaurants
2021 Annual AUV: $918,058
Number and Percentage Exceeding Average: 917/45%
Highest Unit Volume: $2,585,567
Lowest Unit Volume: $186,570
Median Unit Volume: $874,845
- All 2021 Affiliate-Owned Covered Restaurants
2021 Annual AUV: $1,195,218
Number and Percentage Exceeding Average: 16/48%
Highest Unit Volume: $1,938,629
Lowest Unit Volume: $504,480
Median Unit Volume: $1,194,077
This second financial performance representation reflects the historical average and median unit volumes of the 2,086 Jimmy John’s restaurants that operated for Jimmy John’s entire 2021 fiscal year and did not close for any period during the 2021 fiscal year. It also includes the additional 534 Jimmy John’s restaurants that temporarily closed for any period during the 2021 fiscal year due to the global pandemic, weather or protests.
- All 2021 Adjusted Covered Restaurants
2021 Annual AUV: $866,155
Number and Percentage Exceeding Average: 1,191/45%
Highest Unit Volume: $2,585,567
Lowest Unit Volume: $0
Median Unit Volume: $826,820
- All 2021 Franchise-Adjusted Covered Restaurants
2021 Annual AUV: $862,580
Number and Percentage Exceeding Average: 1,167/45%
Highest Unit Volume: $2,585,567
Lowest Unit Volume: $0
Median Unit Volume: $823,868
- All 2021 Affiliate-Owned Adjusted Covered Restaurants
2021 Annual AUV: $1,096,737
Number and Percentage Exceeding Average: 21/53%
Highest Unit Volume: $1,938,629
Lowest Unit Volume: $430,417
Median Unit Volume: $1,109,451
This final set of financial performance representations provides the historical AUVs by quarter, for the 2021 fiscal year and for the 2021 franchise-covered restaurants, then for each group separated by whether or not the restaurants include drive-thru windows.
- All Franchised Restaurants
Q1 AUV: $208,088
Q2 AUV: $244,634
Q3 AUV: $248,350
Q4 AUV: $216,986
Annual AUV: $918,058
- Franchised Restaurants With Drive-Thru
Q1 AUV: $237,909
Q2 AUV: $278,023
Q3 AUV: $278,384
Q4 AUV: $240,263
Annual AUV: $1,034,580
- Franchised Restaurants Without Drive-Thru
Q1 AUV: $191,175
Q2 AUV: $225,696
Q3 AUV: $231,315
Q4 AUV: $203,784
Annual AUV: $851,969
How Much Does It Cost to Open a Jimmy John's?
The estimated total investment necessary to begin the operation of a Jimmy John's franchise ranges from $355,900 to $671,400.
| Type of Expenditure | Amount | To Whom Payment Is to Be Made |
| Initial Franchise Fee | 30,000 – 35,000 | Us |
| Real Estate / Rent (1 Month) | 2,500 – 8,000 | Landlord |
| Security Deposit | 2,500 – 8,000 | Landlord |
| Leasehold Improvements | 115,000 – 310,000 | Outside Suppliers |
| Furniture, Fixtures, Signage, and Equipment (including Computer/Point of Sale System) | 115,000 – 166,000 | Outside Suppliers |
| Architect | 9,500 – 14,500 | Architect |
| Office Equipment | 1,900 | Outside Suppliers |
| Utility Deposits | 1,000 – 2,000 | Utility Companies |
| Opening Inventory and Supplies | 6,000 | Designated and Approved Suppliers |
| Grand Opening Event | 3,000 – 5,000 | Advertising Sources |
| Training Expenses (out-of-pocket costs for up to three people) | 6,000 – 15,000 | Third Parties |
| Insurance | 11,500 – 15,000 | Insurance Company |
| Miscellaneous Expenses | 2,000 – 10,000 | Advisors and Others |
| Additional Funds – Three Months | 50,000 – 75,000 | Employees and Suppliers |
| TOTAL ESTIMATED INITIAL INVESTMENT (excluding real estate purchase costs) | 355,900 – 671,400 |
What Is the Franchise Fee for Jimmy John's?
The initial franchise fee is $35,000. For a limited time, the brand is offering significant incentives for new store development commitments for 2023 to 2025.
Who’s On the Leadership Team for Jimmy John's?
- Jimmy John Liautaud — Founder
- James North — CEO / President
- Darin Dugan — Chief Marketing Officer
- Sarah Mueth — Chief Operating Officer
- Tim Asire — Chief Compliance Officer / Vice President Operations
What Helpful Articles Can I Read to Learn More About Jimmy John's?
- Are Jimmy John's Franchises a Good Investment?
- Fast Casual: This Jimmy John’s Multi-Unit Franchisee Found Success By Empowering Employees to Work for Themselves
- How Delivery Gave Jimmy John’s the Competitive Advantage the Brand Didn’t Know It Needed
- From Fat Kid to Billionaire: The Jimmy John Liautaud Story
- The Story Of The Jimmy John's Sandwich Empire
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