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Jimmy John's Franchise ProfileRestaurant Franchises > Quick-Service Restaurants |
What Are the Initial Investment Requirements for a Jimmy John's Franchise?
To open a Jimmy John's franchise, you should be prepared for an initial investment ranging from $361,200 to $674,200. This includes a franchise fee of $35,000. Additionally, you will need to have cash available between $50,000 and $75,000 and a net worth of $300,000 to $500,000. These financial prerequisites ensure that franchisees have the necessary capital to support their business and cover initial operating expenses.
What Are the Ongoing Fees for a Jimmy John's Franchise?
Jimmy John's franchisees are required to pay a royalty fee of 6% on gross sales. Additionally, there is a marketing fee of 4.5% that contributes to the brand's advertising and promotional efforts. These ongoing fees are essential for maintaining brand recognition and supporting franchise operations, helping to drive customer traffic to your location.
What Is the Financial Performance of a Jimmy John's Franchise?
The average annual revenue per unit for a Jimmy John's franchise is approximately $977,885. The median annual revenue stands at $874,845, with the lowest reported revenue being $116,489 and the highest reaching $3,090,578. Franchisees can expect to break even within about 12 months, with an investment payback period of around 16 months. These figures highlight the potential profitability of investing in a Jimmy John's franchise.
What Are the Operational Expenses for a Jimmy John's Franchise?
Operational expenses for a Jimmy John's franchise can vary, but on average, they are estimated to be between $103,339 and $129,839 annually. This includes costs such as management fees, insurance, and other miscellaneous expenses. Understanding these costs is crucial for franchisees to effectively manage their finances and ensure sustainable operations while maximizing profitability.
Jimmy John's Franchise Financial Requirements
Below, you’ll find an overview of the initial investment needed to launch the business, along with the ongoing fees required by the franchisor to maintain operations over time.
The minimum total assets (minus liabilities) you must possess.
Net Worth Required:
The estimated period to recoup your total investment.
Investment Payback:
The initial fee paid to join the franchise system.
Franchise Fee:
Ongoing percentage of revenue paid to the franchisor.
Royalty Fee:
Regular contribution toward the franchise’s advertising fund.
Marketing Fee:
The estimated timeframe to recover your initial costs.
Breakeven Time:
The total amount required to launch the franchise.
Initial Investment:
The minimum liquid capital you must have on hand.
Cash Required:
The typical yearly revenue generated per franchise location.
Average Revenue:
The middle value of yearly revenue among franchise locations.
Median Revenue:
The largest reported annual revenue among franchisees.
Highest Revenue:
The smallest reported annual revenue among franchisees.
Lowest Revenue:
A broad sector defining similar types of franchise businesses.
Industry:
A more specific division within the broader industry.
Category:
The key individuals guiding the franchise’s strategy and growth.
Leadership:
The official business address of the franchisor’s headquarters.
Corporate Address:
Available financing options to help start the franchise.
Funding Year:
The main organization that owns the franchise brand.
Parent Company:
Jimmy John's Franchise Unit Growth Summary
A breakdown of corporate, franchised, and total units, with yearly net changes.
Total Units
Franchised Units
Corporate Units
| Units | 2021 | 2022 | 2023 |
|---|---|---|---|
| Total Units | 2094 | 2510 | 2560 |
| Net Change YoY | 416 | 50 | |
| Franchised Units | 2053 | 2470 | 2520 |
| Net Change YoY | 417 | 50 | |
| Corporate Units | 41 | 40 | 40 |
| Net Change YoY | -1 | 0 |
Investment Overview
Jimmy John's franchise offers a range of initial investment options, with costs ranging from $361,200 to $674,200. The initial franchise fee is set at $35,000, with ongoing royalty fees of 6% and a marketing fee of 4.5%. Potential franchisees should have liquid assets between $50,000 and $75,000 and a net worth of $300,000 to $500,000 to ensure financial stability during the startup phase.
Revenue Potential
The average annual revenue per Jimmy John's unit is approximately $977,885, with a median revenue of $874,845. Revenue can vary significantly, with the lowest reported at $116,489 and the highest at $3,090,578. This potential for high revenue makes Jimmy John's an attractive option for aspiring franchisees looking to enter the fast-casual dining market.
Breakeven and Payback
Franchisees can expect to reach breakeven within 12 months of operation, which is relatively quick compared to other franchises. The investment payback period is approximately 16 months, allowing franchisees to recoup their initial investment in a timely manner. This swift return can be a key factor in deciding to invest in a Jimmy John's franchise.
Franchise Growth
Jimmy John's has shown consistent growth in its franchise network, with franchised units increasing from 2,053 in 2021 to 2,520 in 2023. This growth indicates a strong demand for the brand and a solid support system for franchisees. The total number of units has also risen, reflecting the brand's expansion strategy and market presence.
Operational Expenses
Average annual operating expenses for a Jimmy John's franchise are around $205,843, accounting for about 21% of revenue. Key expenses include management fees, advertising contributions, insurance, and miscellaneous costs. Understanding these operational expenses is crucial for franchisees to manage their finances effectively and maximize profitability.
Corporate Structure
Jimmy John's is operated by Inspire Brands, which acquired the franchise in 2021. The corporate structure supports franchisees with extensive resources, training, and marketing strategies. This backing ensures that franchisees have access to the necessary tools and support to thrive in a competitive market, enhancing their chances of success.
Frequently Asked Questions
The initial investment for a Jimmy John's franchise ranges from $361,200 to $674,200. This includes the franchise fee of $35,000, equipment, and other startup costs.