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.

By Luca Piacentini1851 Franchise Managing Editor

9:09AM • 06/20/23

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?

What Helpful Articles Can I Read to Learn More About Jimmy John's?

Disclaimer: This content is for informational purposes only. You should not construe any such information or other material as legal, tax, investment, financial, or other advice. Nothing contained on this site constitutes a solicitation, recommendation, endorsement, or offer to buy or sell any franchises, securities, or other financial instruments in this or in any other jurisdiction in which such solicitation or offer would be unlawful under the franchise and/or securities laws of such jurisdiction. All content in this article is information of a general nature and does not address the detailed circumstances of any particular individual or entity. Nothing in the article constitutes professional and/or financial advice, nor does any information in the email constitute a comprehensive or complete statement of the matters discussed or the law relating thereto. You alone assume the sole responsibility of evaluating the merits and risks associated with the use of any information or other content in this article before making any decisions based on such information or other content.