Jimmy John’s Franchise Cost & Fees
Date of Incorporation: 1983
Franchising Since: 1993
Headquarters: Champaign, Illinois
Business Description: The franchisor is Jimmy John's Franchise, LLC. The franchise is to operate a restaurant under the “Jimmy John's” name that features high-quality deli sandwiches, fresh baked breads, and other food and beverage products.
Franchise Offer: We grant franchises for restaurants operating under the “Jimmy John's” name and other marks.
Financial Assistance: The franchisor does not offer direct or indirect financing. The franchisor does not guarantee franchisees’ note, lease, or obligation.
Training and Assistance: The franchisor will train franchisees (or their Managing Owner), their Operations Partner (if required because their Managing Owner will not be involved in the Restaurant's on-site, day-to-day operation), and their on-site managers (which may include general managers and assistant managers) on operating a Jimmy John's Restaurant, excluding aspects relating to labor relations and employment practices. The franchisor will provide 3 weeks of training (although the specific number of days depends on its opinion of franchisees’ or their Managing Owner's, their Operations Partner's, and their managers' experience, needs, and performance) at a designated training facility of its choice in Illinois and/or at an operating Jimmy John's Restaurant. Franchisees (or their Managing Owner) or, if applicable, their Operations Partner also must successfully complete its apprenticeship program, which is 4 weeks long. If this is the franchisee’s first Jimmy John's Restaurant, then he/she (or the Managing Owner), the Operations Partner (if the Managing Owner will not be involved in the Restaurant's onsite, day-to-day operation), and your on-site managers (which may include general managers and assistant managers) must, before attending the 2-week training class described above, attend the franchisor’s “Boot Camp” training for new franchisees. “Boot Camp” training consists of approximately 5 10-hour days in the franchisor’s training kitchen learning how to complete opening procedures, make all of the franchisor’s recipes, bake bread, and make sandwiches. Franchisees (or their Managing Owner), any Operations Partner and/or previously trained and experienced managers must attend and complete to the franchisor’s satisfaction various training courses the franchisor periodically provides at the times and locations it designates.
Territory: Franchisees will operate the Restaurant at a specific location that the franchisor first must accept. Franchisees will not receive an exclusive territory. Franchisees also do not have any type of non-exclusive territory. Franchisees may face competition from other franchisees, from outlets that the franchisor owns, or from other channels of distribution or competitive brands that the franchisor controls.
Term of Agreement and Renewal: The length of the initial franchise term is 10 years from the first day of the lease term. If franchisees are in full compliance, they may acquire one successor franchise on its then current terms (which may be materially different) for shorter of 10 years or the lease term.
Obligations and Restrictions: Franchisees must at all times faithfully, honestly, and diligently perform their contractual obligations and use best efforts to promote and enhance the Restaurant. If franchisees are a legal entity, they must appoint a shareholder, member, or partner (as applicable) to be the “Managing Owner,” responsible for overseeing and supervising the Restaurant's operation. Franchisees must offer and sell all Menu Items and perform all services the franchisor periodically requires for Jimmy John's Restaurants. Franchisees may not offer or sell any products or perform any services it has not authorized.
Estimated Number of Units: 2,500
|Name of Fee||Low||High|
|Initial Franchise Fee||$30,000||$35,000|
|Real Estate/Rent (1 month)||$2,500||$8,000|
|Furniture, Fixtures, Signage, and Equipment (including Computer/ Point-of-Sale System)||$107,500||$166,000|
|Opening Inventory and Supplies||$6,000||$6,000|
|Grand Opening Event||$3,000||$5,000|
|Training Expenses (out-of-pocket costs for up to 3 people)||$6,000||$15,000|
|Additional Funds (first 3 months)||$50,000||$75,000|
|ESTIMATED TOTAL (excluding real estate purchase costs)||$325,500||$555,000|
|Type of Fee||Amount|
|Royalty||6% of Restaurant’s weekly Gross Sales.|
|Advertising and Development Fund||Up to 4½% of Restaurant's weekly Gross Sales (currently the full 4½%)|
|Cooperative Advertising Programs||Up to 2% of Restaurant's Gross Sales.|
|1-week or 2- Week Training Program for New, Additional, or Repeat Trainees||Currently $1,500 (or $2,000 for expelled trainee re-attending); the franchisor may increase this fee and charge up to $5,000|
|New Training and Additional Guidance or Support||Currently $400 per person per day plus expenses if provided at the franchisor’s location; currently $600 per person per day plus expenses if provided at the franchisee’s Restaurant; the franchisor may increase this per-person, per-day fee and charge up to $1,000|
|Area Manager Training||Currently $2,000; the franchisor may increase this fee and charge up to $5,000|
|Transfer||$7,500 or $12,500|
|Product and Service Purchases||Varies.|
|Testing||Costs of Testing (amount of which depends on circumstances, including supplier's location, testing required, and item involved).|
|Relocation||$2,500 plus costs and expenses.|
|Computer Systems, Maintenance and Support||Cost of service.|
|Confidential Area Manager Manual||$500|
|Franchisee Convention||Up to $200|
|Regional Advisory Council||Council Assessments.|
|Audit||Cost of inspection or audit (amount of which depends on circumstances and extent of the franchisee’s noncompliance).|
|Interest||Lesser of 1.5% per month or highest commercial contract interest rate law allows.|
|Non-Approved Restaurant Opening||$2,500 for each day Restaurant is open without the franchisor’s approval.|
|Non-Compliance||$250 - $1,000 for deviations from operational requirement / Brand Standard.|
|Fee for Hiring the Franchisor’s Affiliate’s, or Franchisee’s Management Employees after Violating Non-Recruitment /Non-Solicitation Restriction||$50,000 per occurrence.|
|Unauthorized Advertising Fee||$1,000 per occurrence.|
|Late Fee||10% of original amount due but not paid on time.|
|Confidential Operations Manual||$500|
|Management Fee||$600 per person per day (plus costs and expenses).|
|Costs and Attorneys’ Fees||Will vary under circumstances and depend on nature of the non-compliance.|
|Indemnification||Will vary under circumstances and depend on nature of third-party claim.|
|Liquidated Damages||If the franchisor terminates the Franchise Agreement with cause or franchisees terminate the Franchise Agreement without cause, franchisees must pay the franchisor, within 15 days after the termination's effective date, liquidated damages equal to the product of (a) the Royalties you were obligated to pay the franchisor on the Restaurant's Gross Sales during the previous 364 days the Restaurant operated (b) multiplied by 3 (unless there are less than 3 years remaining in the franchise term at the time of termination, in which case the Royalties will be multiplied by the number of years remaining).|
|Maintenance Cost Reimbursement||$600 per day plus costs and expenses.|
|Customer Complaint Reimbursement||Out-of-pocket cost reimbursement.|
|Insurance Reimbursement||Out-of-pocket cost reimbursement.|
|Tax Reimbursement||Out-of-pocket cost reimbursement.|
|De-identification Reimbursement||Out-of-pocket cost reimbursement.|
The above information has been taken from the FDD of Jimmy John's. Year of FDD: 2016
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