Franchising Since: 1993
Headquarters: Atlanta, Georgia
Estimated Number of Units: 2,645
Franchise Description: The franchisor is Jimmy John's Franchisor SPV, LLC. The franchisor’s parent company is Inspire Brands. 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.
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Training Overview: Before the restaurant opens for business, the operations partner and on-site managers that franchisees have designated to become certified will be trained on the material aspects of operating a Jimmy John’s restaurant, excluding aspects relating to labor relations and employment practices. Three weeks of training (although training may be longer or shorter depending on the attendees’ experience and needs) will be provided at a designated training facility of the franchisor’s choice and/or at an operating Jimmy John’s restaurant. The operations partner also must successfully complete an apprenticeship program, which is four weeks long. When the restaurant is ready to open for business, the franchisor will, at its own cost, send a representative to the restaurant to assist during its initial opening period. The franchisor may require the operations partner and/or previously trained and experienced managers to attend and complete to its satisfaction any training courses it periodically chooses to provide during the franchise term, at the times and locations it designates.
Territory Granted: 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.
Obligations and Restrictions: Franchisees must at all times faithfully, honestly, and diligently perform their contractual obligations and use their best efforts to promote and enhance the restaurant and the Jimmy John’s brand. The owners must personally guarantee the obligations under the Franchise Agreement and agree to be bound personally by every contractual provision, whether containing monetary or non-monetary obligations, including the covenant not to compete. 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 the franchisor has not authorized.
Term of Agreement and Renewal: The length of the initial franchise term is 10 years from the day on which restaurant first opens to the public for business. If franchisees are in full compliance, they may acquire one successor franchise on the then current terms (which may be materially different) for the shorter of 10 years or the lease term.
Financial Assistance: The franchisor does not offer direct or indirect financing. The franchisor does not guarantee a franchisee’s note, lease, or obligation.
Estimated Initial Investment
Name of Fee | Low | High |
Initial Franchise Fee | $35,000 | $35,000 |
Real Estate/Rent (1 month) | $2,500 | $8,000 |
Security Deposit | $2,500 | $8,000 |
Leasehold Improvements | $115,000 | $310,000 |
Furniture, Fixtures, Signage, and Equipment (including Computer/ Point-of-Sale System) | $120,000 | $215,000 |
Architect | $9,500 | $22,000 |
Office Equipment | $2,200 | $2,200 |
Utility Deposits | $1,000 | $2,000 |
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 |
Insurance | $11,500 | $15,000 |
Miscellaneous Expenses | $2,000 | $10,000 |
Additional Funds – 3 months | $50,000 | $75,000 |
ESTIMATED TOTAL (excluding real estate purchase costs) | $366,200 | $728,200 |
Other Fees
Type of Fee | Amount |
Royalty | 6% of restaurant’s weekly gross sales. |
Advertising and Development Fund | Up to 4.5% of restaurant's weekly gross sales (currently the full 4.5%) or 2.25% for non-traditional locations. |
Cooperative Advertising Programs | Up to 2% of restaurant's gross sales. |
Successor Franchise | $10,000 |
1-week or 3-week Certified Management 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. |
District Manager Training | Currently $2,000; the franchisor may increase this fee and charge up to $5,000. |
Controlling Ownership Interest Transfer | $2,500, $7,500, or $12,500 |
Non-Controlling Ownership Interest Transfer | $1,000 |
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. |
Franchisee Convention | Up to $500. |
Regional Advisory Council | Council assessments. |
Audit | Cost of inspection or audit (amount of which depends on circumstances and extent of the franchisee’s non-compliance). |
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 standards. |
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 Damage | See FDD. |
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. |
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