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 plenty to learn about Jimmy John’s. You could spend time searching through the Jimmy John’s website for information, or you could take a look at these key 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.
- Recently, Jimmy John’s became part of the Inspire Brands family, which includes more than 11,000 restaurants such as 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 takes pride in its made-to-order sandwiches, which are crafted with fresh vegetables, freshly baked bread, and all-natural meats and cheeses that are sliced by hand each day.
Jimmy John’s Franchise Cost
What are the costs involved in opening a Jimmy John’s franchise? The investment required to start a Jimmy John’s franchise typically ranges from approximately $350,000 to $670,000, not including the costs of purchasing real estate. This initial investment estimate comprises an initial franchise fee of $30,000 to $35,000, average monthly rent of around $5,000, security deposits, furniture, equipment, grand opening events, supplies, inventory, and various other expenses related to launching a new business. It is important to note that the franchisor does not provide financing, either 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 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 approximately 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 annually. To make that amount, a franchisee must achieve at least $900,000 in gross annual sales. Given that the average Jimmy John’s franchise generates approximately $922,442, it’s not an unrealistic level of revenue or associated salary.
Requirements to Open a Jimmy John’s Franchise
Owning a Jimmy John’s franchise is quite straightforward. Compared to other brands, Jimmy John’s has fewer qualification requirements, and its financial obligations are lower than those of many of its competitors. If you’re interested in starting a Jimmy John’s franchise, you will need to fulfill the following criteria:
Financial Assets
Candidates require $200,000 in liquid capital and a minimum net worth of $1 million to establish up to three Jimmy John’s units.
Experience
Prospective franchisees need to have experience in team leadership and adhering to systems in order to own a Jimmy John’s franchise.
Work Ethic
A Jimmy John’s franchise owner should also be capable and boast a competitive spirit.
Customer Focus
New franchisees should not only be authentic and community-oriented, but they must also show a commitment to the customers of the brand.
Brand Loyalty
The company also looks for franchisees who love the brand and Jimmy John’s gourmet sandwiches.
Is Opening a Jimmy John’s 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 does not provide direct financial assistance, there are financing options typically available for those who meet the qualifications. In addition to the financial aspects, the personal rewards of owning a Jimmy John’s franchise—one of the fastest-growing restaurant chains—and providing healthy, freshly made meal options to dedicated customers are significant.
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