Entrepreneurs seeking franchise opportunities to enter the restaurant business should consider Jimmy John’s Franchisor SPV, LLC. Starting a shop serving Jimmy John’s gourmet sandwiches can be a profitable venture for businesspeople who meet certain qualifications. Continue reading to learn everything you need to know about opening a Jimmy John’s franchise.
Basic Facts About the Jimmy John’s Franchise
There’s a lot to know about Jimmy John’s. You could spend time scouring the Jimmy John’s website for details, or you could 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 mainly operated by franchisees.
- Jimmy John’s currently boasts more than 2,700 units across 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 about $2.1 billion in annual revenue.
- Jimmy John’s prides itself on its made-to-order sandwiches created with fresh vegetables and fresh-baked bread, as well as all-natural meats and cheeses that are hand-sliced daily.
Jimmy John’s Franchise Cost
What does it cost to open Jimmy John’s franchises? The cost to start a Jimmy John’s franchise ranges from about $350,000 to about $670,000, excluding real estate purchase costs. This estimated initial investment includes a $30,000-$35,000 initial franchise fee, rent averaging $5,000 a month, security deposits, furniture, equipment, grand opening events, supplies, inventory and other costs associated with starting a new business. The franchisor does not offer financing directly or indirectly.
Jimmy John’s Franchise Fee
In addition to the typical ongoing costs of operating a restaurant, other ongoing fees and expenditures 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. Franchise owners also must contribute to the brand’s advertising and development fund with 4.5% of their weekly gross sales, as well as 2% of sales for local advertising.
Jimmy John’s Franchise Profit
How profitable are Jimmy John’s stores? According to the company’s 2019 franchise disclosure document, the average Jimmy John’s restaurant records about $1.2 million in annual gross sales, of which about $280,000 is 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
How much is the average Jimmy John’s franchisee’s salary? The owner of a Jimmy John’s franchise with average sales can expect to earn about $90,000 each year. To make that amount, a franchisee must achieve at least $900,000 in gross annual sales. Since the average Jimmy John’s franchise generated $922,442 in 2021, it’s not an unrealistic level of revenue or associated salary.
Requirements to Open a Jimmy John’s Franchise
It’s relatively simple to own a Jimmy John’s franchise. 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’ll need to meet the following criteria:
Candidates need $200,000 in liquid capital and a minimum net worth of $1 million to open up to three Jimmy John’s units.
Prospective franchisees should have experience leading teams and following systems to own a Jimmy John’s.
A Jimmy John’s franchise owner also should be capable and boast a competitive spirit.
Not only should new franchisees be genuine and community-minded, but they should demonstrate a devotion to the brand’s customers.
The company also looks for franchisees who love the brand and Jimmy John’s gourmet sandwiches.
Is Opening a Jimmy Johns Franchise Worth It?
Is it worth it to open a Jimmy John’s brand sandwich shop? In terms of franchises, Jimmy John’s is fairly affordable, and the company boasts consistent profits that, 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 around 5 years’ time, making the sandwich chain a good investment.
While the company doesn’t offer financial assistance directly, financing options generally are available to those who qualify. Aside from the financials, the personal benefits of owning one of the fastest-growing restaurant chains and serving healthy, fresh-made meal options to loyal customers can’t be overestimated.
More in: Franchise Opportunities