• Wed. Nov 30th, 2022

Jimmy Johns Franchise Ownership FAQs

ByStephanie M. Akbar

Nov 9, 2022

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Entrepreneurs looking for franchise opportunities to enter the restaurant business should consider Jimmy John’s Franchisor SPV, LLC. Starting a shop serving gourmet Jimmy John’s sandwiches can be a profitable business for businesspeople who meet certain qualifications. Keep reading to learn everything you need to know about opening a Jimmy John franchise.



Basic facts about the Jimmy John’s franchise

There is a lot to know about Jimmy John’s. You might spend some time browsing the Jimmy John’s website for more details, or you might consider the following facts about the Jimmy John’s franchise:

  • Jimmy John Liautaud opened the first Jimmy John’s store in Illinois in 1983, although he originally hoped to start a hot dog business. By the company’s 20th anniversary, it had expanded to 160 locations primarily operated by franchisees.
  • Jimmy John’s currently has over 2,700 units in 43 states.
  • In 2019, Jimmy John’s joined the Inspire Brands family of more than 11,000 restaurants, including Arby’s, Buffalo Wild Wings, Rusty Taco and Sonic Drive-in.
  • Overall, the Jimmy John’s franchise system generates approximately $2.1 billion in annual revenue.
  • Jimmy John’s prides itself on its made-to-order sandwiches created with fresh vegetables and fresh breads, as well as hand-sliced ​​all-natural meats and cheeses daily.

Jimmy John Franchise Cost

How much does it cost to open Jimmy John’s franchises? The cost of starting a Jimmy John’s franchise ranges from about $350,000 to about $670,000, excluding real estate purchase costs. This estimated initial investment includes initial franchise fees of $30,000-35,000, average rent of $5,000 per month, security deposits, furniture, equipment, grand opening events, supplies, inventory and other costs associated with starting a new business. The franchisor does not provide financing directly or indirectly.

Jimmy John Franchise Fees

In addition to the typical ongoing costs of operating a restaurant, other common fees and expenses apply to owning Jimmy John’s locations. After the initial franchise fee, Jimmy John’s franchisees must pay a royalty equal to 6% of the restaurant’s weekly gross sales. Franchisees must also contribute to the advertising and brand development fund with 4.5% of their weekly gross sales, as well as 2% of sales for local advertising.

Jimmy John Franchise Earnings

How profitable are Jimmy John’s stores? According to the company 2019 Franchise Information Document, the average Jimmy John’s restaurant has about $1.2 million in annual gross sales, including about $280,000 in net profit. Most Jimmy John’s franchisees can recoup their initial investments from a Jimmy John’s location with average sales after operating for about 5 years.

Jimmy John’s Franchise Owner Salary

What is the average salary of a Jimmy John’s franchisee? The owner of a Jimmy John’s franchise with average sales can expect to earn around $90,000 per year. To earn this amount, a franchisee must achieve at least $900,000 in gross annual sales. Given that the average Jimmy John’s franchise generated $922,442 in 2021, that’s not an unrealistic level of revenue or associated salary.

Requirements to Open a Jimmy John’s Franchise

Owning a Jimmy John’s franchise is relatively simple. Jimmy John’s requires fewer qualifications than some other brands and its financial requirements are also lower than many competitors. Interested in opening a Jimmy John’s franchise? You will need to meet the following criteria:

Financial assets

Applicants need $200,000 in liquid capital and a minimum net worth of $1 million to open up to three Jimmy John’s units.

Live

Prospective franchisees must have experience leading teams and the following systems to own a Jimmy John’s.

Work ethic

A Jimmy John’s franchise owner must also be capable and competitive.

Client orientation

Not only must new franchisees be authentic and community-minded, but they must also demonstrate dedication to the brand’s customers.

Brand Loyalty

The company is also looking for franchisees who love the Jimmy John’s brand and gourmet sandwiches.

Is opening a Jimmy Johns franchise worth it?

Is it worth opening a Jimmy John’s sandwich shop? In terms of franchises, Jimmy John’s is quite affordable and the company boasts consistent profits which, while not the highest in the industry, are reliable and accumulate over time. In fact, most Jimmy John’s franchise owners will recoup their initial expenses in just about 5 years, making the sandwich chain a sound investment.

Although the company does not offer financial assistance directly, financing options are generally available for those who qualify. Aside from finances, the personal benefits of owning one of the fastest growing restaurant chains and serving healthy, fresh meal options to loyal customers cannot be overemphasized.

Image: Depositphotos


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