Complete investment analysis based on official FDD data
Total Investment
$366,200 – $728,200
Franchise Fee
$35,000
Royalty Rate
6.0%
The total initial investment to open a Jimmy John's franchise ranges from $366,200 to $728,200, as disclosed in their Franchise Disclosure Document. This includes the one-time franchise fee of $35,000.
Midpoint estimate: $547,200
$35,000
One-time initial fee
The Jimmy John's franchise fee is a one-time upfront payment made to the franchisor when you sign the franchise agreement. This fee grants you the right to operate under the Jimmy John's brand and is included in the total initial investment range above.
Royalty Fee
6.0%
of gross revenue
Ad/Marketing Fund
2.0%
of gross revenue
Total Ongoing Fee Burden: 8.0% of gross revenue
Combined royalty and advertising fund contributions before any other fees.
| Fee Type | Rate | Type | Notes |
|---|---|---|---|
| Royalty | 6.0 | PCT | Due on Wednesday of each week on Gross Sales during previous week ending Tuesday. Gross Sales includes all revenue from operating Restaurant, delivery and catering charges, business interruption insurance proceeds, relocation/closure amounts, and gift/loyalty card sales (except JIMMY JOHN'S gift cards). Excludes taxes collected and paid to taxing authority, revenue from selling JIMMY JOHN'S gift cards, and is reduced by documented refunds, credits, discounts, and loyalty program redemptions. |
| Advertising and Development Fund | 4.5 | PCT | Up to 4.5% of Restaurant's weekly Gross Sales (currently the full 4.5%) or 2.25% for Non-Traditional Locations. Due on Wednesday of each week on Gross Sales during previous week ending Tuesday. |
| Cooperative Advertising Programs | 2.0 | PCT | Up to 2% of Restaurant's Gross Sales. Paid as Cooperative Program directs. Item 11 discusses Cooperative Advertising Programs. |
| Successor Franchise | 10000.0 | FIXED | Due when you acquire successor franchise after initial franchise term expires. |
| Site design fee and kitchen layout design fee | 1200.0 | VARIABLE | Currently $1,200 for a PSL and $750 for a PKL, but may increase if affiliates' costs increase. Payable if you choose to have affiliate develop a PSL or PKL in connection with remodeling or refurbishing the Restaurant. PSL services only offered to Restaurants that have or will have a drive-thru. |
| 1-week or 3-Week Certified Management Training Program for New, Additional, or Repeat Trainees | 1500.0 | VARIABLE | Currently $1,500 (or $2,000 for expelled trainee re-attending); may increase to up to $5,000. Due upon registration in training program. Initial training provided for 2 people at no additional cost. May be charged for initial training of more than 2 people, training newly-hired managers, and re-training. First-time franchisee opening first Restaurant not charged additional training fee for third trainee for that first Restaurant. |
| New Training and Additional Guidance or Support | 400.0 | VARIABLE | Currently $400 per person per day plus expenses if provided at franchisor location; currently $600 per person per day plus expenses if provided at franchisee Restaurant; may increase per-person, per-day fee up to $1,000. Due when new training or additional guidance or support begins. May be charged for new training programs and additional guidance or support franchisee needs or requests (excluding aspects relating to labor relations and employment practices). |
| District Manager Training | 2000.0 | VARIABLE | Currently $2,000; may increase to up to $5,000. Due upon registration in training program. |
| Controlling Ownership Interest Transfer | 12500.0 | VARIABLE | $12,500 if transferee is not an existing JIMMY JOHN'S franchisee that has operated at least 1 Restaurant for 1 full year; $7,500 if transferee is an existing franchisee that has operated at least 1 Restaurant for 1 full year; no charge if transferred to an entity franchisee controls; $2,500 if transferee is immediate family member (spouse, parent, child, or sibling). Half due (and non-refundable) when franchisee requests transfer approval; balance due before transfer completed. |
| Non-Controlling Ownership Interest Transfer | 1000.0 | FIXED | Due before the transfer's proposed effective date for transfer of a non-controlling ownership interest. |
| Product and Service Purchases | N/A | VARIABLE | Discussed in Item 8. Due as incurred. Franchisee will buy products and services from franchisor, affiliates, designated and approved vendors whose items meet standards and specifications, and/or other suppliers to the industry. Prices depend on the supplier and item/service involved. |
| Testing | N/A | VARIABLE | Costs of testing (amount depends on circumstances, including supplier's location, testing required, and item involved). Due when billed. Covers costs of testing new products or inspecting new suppliers franchisee proposes. |
| Relocation | 2500.0 | FIXED | $2,500 plus costs and expenses. Due as incurred. Due if franchisee wishes to relocate the Restaurant's premises. |
| Computer Systems, Maintenance, and Support | N/A | VARIABLE | Costs of service. Due as incurred. Covers computer system support and ongoing development and software upgrades that franchisor or affiliates might provide in the future. Franchisor and affiliates do not now provide these services but may charge for them if they do. |
| Franchisee Convention | 500.0 | VARIABLE | Up to $500. Due when billed. May be charged this fee to attend each franchisee convention (franchisee also must pay travel and living expenses). Fee intended to help cover conference costs and may increase if costs of conducting the conference increase. |
| Regional Advisory Council | N/A | VARIABLE | Council Assessments. Due when billed. Franchisor has right to enforce payments, which may vary among councils. |
| Audit | N/A | VARIABLE | Cost of inspection or audit (amount depends on circumstances and extent of non-compliance). Due 15 days after receiving examination report. Due if: 1) Franchisor conducts on-site examination because franchisee fails to submit reports, supporting records, or other required information in a timely manner; or 2) Franchisee understates required Royalties or Fund contributions by more than 3% for the audit period. |
| Interest | 1.5 | PCT | Lesser of 1.5% per month or highest commercial contract interest rate law allows. Due when billed. Due on all overdue amounts more than 7 days late. |
| Non-Approved Restaurant Opening | 2500.0 | FIXED | $2,500 for each day Restaurant is open without franchisor approval. Due when billed. Due if franchisee opens Restaurant for business before being approved to do so. |
| Non-Compliance | 250.0 | VARIABLE | $250 to $1,000 for deviations from operational requirements/Brand Standards. Due when billed. Due if franchisee deviates from system requirements for operations or Brand Standards. Serves as compensation for administrative and management costs, not for damages. May be charged $250 for each deviation. If same (or substantially similar) deviation discovered on 1 or more consecutive, subsequent visits/inspections, may be charged $500 for 1st repeat deviation and $1,000 for second and each subsequent repeat deviation. |
| Unauthorized Advertising Fee | 1000.0 | FIXED | $1,000 per occurrence. Due when billed. Due if franchisee uses unapproved advertising or marketing materials. |
| Late Fee | 10.0 | PCT | 10% of original amount due but not paid on time. Due when billed. Due for each late payment. |
| Confidential Operations Manual | 500.0 | FIXED | $500. Due 15 days after billing. Charge for replacement copy. |
| Management Fee | 600.0 | FIXED | $600 per person per day (plus costs and expenses). Due as incurred. Unless franchisee is a Sophisticated Franchisee, payable when franchisor, affiliate, or another third party manages Restaurant after Operations Partner's death or disability or after franchisee's default or abandonment. |
| Costs and Attorneys' Fees | N/A | VARIABLE | Will vary under circumstances and depend on nature of non-compliance. Due as incurred. Due when franchisee does not comply with the Franchise Agreement. |
| Indemnification | N/A | VARIABLE | Will vary under circumstances and depend on nature of third-party claim. Due as incurred. Franchisee must reimburse franchisor and affiliates if any are held liable for claims from Restaurant's operation or incur costs to defend them. |
| Maintenance Cost Reimbursement | 600.0 | FIXED | $600 per day plus costs and expenses. Due as incurred. Franchisee must provide reimbursement if franchisor or designee corrects Restaurant's sub-standard appearance or condition (if franchisee does not do so when required); amount depends on extent of non-compliance. |
| Customer Complaint Reimbursement | N/A | VARIABLE | Out-of-pocket cost reimbursement. Due as incurred. Franchisee must provide reimbursement if franchisor or designee resolves a customer complaint because franchisee does not do so; amount depends on extent of non-compliance. |
| Insurance Reimbursement | N/A | VARIABLE | Out-of-pocket cost reimbursement. Due as incurred. Franchisee must provide reimbursement if franchisor or designee obtains insurance for franchisee because franchisee fails to obtain or maintain required coverage (franchisee's failure is a Franchise Agreement default). |
| Tax Reimbursement | N/A | VARIABLE | Out-of-pocket cost reimbursement. Due as incurred. Franchisee must reimburse franchisor for any taxes franchisor must pay to any state taxing authority on account of either franchisee's operation or franchisee's payments to franchisor (except for certain income-related taxes of franchisor). |
| De-identification Reimbursement | N/A | VARIABLE | Out-of-pocket cost reimbursement. Due as incurred. Franchisee must provide reimbursement if franchisor or designee incurs costs to de-brand the Restaurant after the franchise ends because franchisee fails to do so as required. |
Category
QSR
System Size
2,647 units
Franchise Score
out of 100
Jimmy John's operates a fast-casual sandwich shop chain specializing in freshly made gourmet sandwiches and delivery service. The franchise prioritizes speed of service and uses fresh, never-frozen ingredients to differentiate itself in the quick-service market.
Median Revenue
$935,022
per year, per location
Estimated Owner Profit
$112,203
per year
Profit Margin
12.0%
of revenue
Estimation method: benchmark
Estimated ROI (Simple Payback): 4.9 years
Based on midpoint investment of $547,200 and estimated annual owner profit of $112,203.
Avg. Annual Closure Rate
0.1%
Low risk — below industry average
Net Unit Growth
+31 units
From 2022 to 2024
| Year | Start | Opened | Closed | Transfers | End |
|---|---|---|---|---|---|
| 2022 | 2616 | +67 | -7 | — | 2597 |
| 2023 | 2597 | +58 | -1 | — | 2602 |
| 2024 | 2602 | +88 | -1 | — | 2647 |
Based on the FDD data, here is a data-driven snapshot of the Jimmy John's franchise opportunity:
Overall Score
81/100
Strong opportunity
Est. Payback Period
4.9 yrs
Average payback
Risk Level
Low
0.1% annual closure rate
Jimmy John's scores well across our evaluation criteria, indicating a strong franchise system. With median unit revenue of $935,022 and a combined fee burden of 8.0% of gross revenue, prospective franchisees should model their own financial projections carefully. For a complete analysis including risk factors, deal-breaker flags, and detailed financial modeling, see the full report.
Get the full Jimmy John's franchise intelligence report with risk analysis, deal-breaker alerts, and detailed financial projections.
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