Jimmy John's Gourmet Sandwiches Franchise Opportunities - History

Jimmy John Liautaud opened the first Jimmy John's in 1983 in Charleston, Illinois. His original plan of starting a hot dog business failed when he realized that it would be too expensive, instead, he opened a sandwich shop. The store saw profit after only its first year of business, this was large because Liautaud would deliver to local dorms and offer free samples. The second and third Jimmy John's opened in the late '80s, and the sandwich shop began franchising in 1994. Franchising briefly paused in 2002 when Liautaud took time off to go assist with subpar-performing stores. Business resumed normally after the franchising intermission, and by 2010, Jimmy John's had over 1,000 locations. Liautaud sold a large portion of the company to private equity firm Roark Capital Group in 2016, but he retains a significant stake in the business to this day.

Jimmy John's Gourmet Sandwiches Franchise / Initial Investment / Jimmy John's Gourmet Sandwiches Franchise Income

Initial Investment & Initial Franchise Fees

The estimated initial investment required to open a Jimmy John's franchised restaurant is $329,500 to $557,500, excluding real estate purchase costs. You must have a net worth of at least $300,000 and access to at least $80,000 in cash or liquid assets to qualify for ownership of a Jimmy John's.

To open a Jimmy John's, new franchisees must pay an initial franchise fee of $30,000 to $35,000 for every unit they intend to develop.

Ongoing Royalties and Program Contributions

Jimmy John's franchisees must pay an ongoing 6% royalty fee on monthly gross sales and must also contribute a 4.5% monthly marketing fee toward the franchisor's systemwide marketing program.

How Much Does a Jimmy John's Franchise Owner Make?

According to Jimmy John's website and 2018 Franchise Disclosure Document, the average Jimmy John's restaurant franchise produces the following revenue and profits*:

• Average Annual Gross Sales: 1,128,648
• Average Food & Paper Costs: 24.05%
• Average Net Profit from Operations: $109,959

*These figures reflect averages for thirty-one (31) affiliate-owned restaurants that opened before January 1, 2013, as published in Item 19 of the franchisor's April 2018 Franchise Disclosure Document. These averages are based on a 52-week annual period from January 4, 2017, through January 2, 2018. Of these thirty-one (31) restaurants, 14 (45%) had higher gross sales, 17 (55%) had higher food and paper costs, and 15 (48%) had higher net profit percentages during the reported period.

Jimmy John's Franchise System Size and Composition

Jimmy John's has approximately 2,800 locations, of which around 98 percent are franchised. All of Jimmy John's locations are based within the United States. Overall, the franchise system generates around $2.1 billion of annual revenue.