Risk Score
Pending analysis
Investment Range
$366,200 - $728,200
Franchise Fee
$5,000
Total US Locations
2,689
Business Summary
Jimmy John's operates restaurants that specialize in gourmet deli sandwiches, fresh-baked breads, and other food and beverage products. These restaurants typically operate in strip shopping centers, malls, and free-standing units, offering carry-out, delivery, and on-premises dining services.
Corporate History
Jimmy John's Franchisor SPV, LLC was established on June 12, 2017, and commenced offering franchises for JIMMY JOHN'S® Restaurants in July 2017. The franchise system's roots, however, trace back to its predecessor, Jimmy John's Franchise, LLC (JJF), which operated as the franchisor from 1993 until the securitization transaction in July 2017. An affiliate, Jimmy John's Enterprises, LLC (JJE), has been operating JIMMY JOHN'S® Restaurants since 1983. In October 2019, Inspire Brands, Inc. acquired Jimmy John's LLC, integrating it as an indirect parent company. All existing U.S. franchise agreements were transferred to Jimmy John's Franchisor SPV, LLC as part of this restructuring.
Financial Overview
Investment Range
$366,200 - $728,200
Franchise Fee (Low)
$5,000
Franchise Fee (High)
$35,000
Royalty %
6%
Marketing %
4.5%
Equipment Costs (Low)
$235,000
Equipment Costs (High)
$525,000
Working Capital
$62,500
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
Jimmy John's Franchisor SPV, LLC's financial statements received an unqualified opinion from independent auditors, indicating that its financial position and results of operations are presented fairly in accordance with U.S. generally accepted accounting principles. The company's management and auditors routinely evaluate its ability to continue as a going concern, and the independent auditor's report does not raise any substantial doubt regarding this.
Financing Details
Jimmy John's does not offer any direct or indirect financing to its franchisees. It also does not guarantee any notes, leases, or other obligations for its franchisees.
Performance Metrics
Total US Locations
2,689
Franchised Units
2,647
Corporate Units
42
Avg Square Footage
1,400
Franchising Since
1993
Legal & Compliance Analysis
Recent Litigation
Yes
Bankruptcy
No
Litigation Count
14
Litigation Summary
Jimmy John's has been involved in several lawsuits. Historically, these included a class action regarding misrepresentation of alfalfa sprouts, settled in 2015; a class action concerning a data breach, settled in 2016; a consolidated class action alleging federal Fair Labor Standards Act violations and employee misclassification, settled in 2021; and a complaint from the Illinois Attorney General regarding employee non-competition agreements, which resulted in a consent decree that expired in 2019. Two class actions from 2020 alleged mislabeling of "All-Natural" cookies, both settled in 2021 with the supplier funding the settlement. A 2020 case from a former franchisee alleging breach of an oral franchise agreement and state disclosure act violations was settled in 2021. More recently, in 2021, an arbitration case was filed by a franchisee alleging breach of the franchise agreement and state disclosure act violations; an interim award in January 2025 found in favor of the franchisee on a timely non-renewal notice claim, with damages still to be determined. Additionally, a class action was filed in June 2023 against Jimmy John's LLC, alleging violations of the Illinois Biometric Information Privacy Act, which Jimmy John's denies and intends to defend. Affiliates of Jimmy John's, under Inspire Brands, have also settled "no-poaching" lawsuits and faced a New York lawsuit regarding data privacy related to cyberattacks.
Bankruptcy History
Jimmy John's Franchisor SPV, LLC has no bankruptcy history to report.
Agreement Terms
Initial Term
10 years
Renewal Term
10 years
Renewal Conditions
To renew a Jimmy John's franchise, franchisees must provide timely notice, maintain possession of their restaurant premises or secure an acceptable substitute, and agree to remodel their restaurant to meet Jimmy John's current standards, regardless of the cost. They must also pay a successor franchise fee, satisfy all current training requirements, and sign the then-current franchise agreement and other required documents, including a general release if allowed by state law. These conditions are contingent on the franchisee and their owners having substantially complied with the franchise agreement and operated the restaurant in full compliance with Brand Standards throughout the initial term.
Training & Support Program
Franchisor Assistance
Jimmy John's provides assistance to franchisees both before and during the operation of their restaurants. Prior to opening, Jimmy John's helps with market area analysis and site feasibility (but not site selection), accepts the restaurant's lease terms, and provides mandatory and suggested design specifications and layouts. It identifies required operating assets and suppliers, grants access to the confidential operations manual, and offers advice for grand opening events. Initial training programs are provided for the Operations Partner and on-site managers, including a 3-week program and a 4-week apprenticeship. A representative assists on-site for a specified number of hours during the initial opening period. Ongoing support includes guidance and recommendations based on reports or inspections, additional guidance if requested, continuous access to the confidential operations manual and Brand Standards, regular audits and inspections, and the administration of an Advertising and Development Fund for marketing. Jimmy John's also offers new training courses periodically and permits the use of its confidential information and trademarks.
Initial Training Hours
128
Training Location
Training facilities in Champaign, Illinois or Atlanta, Georgia, or designated operating JIMMY JOHN'S Restaurants.
Ongoing Support
Jimmy John's offers ongoing training through its Cornerstone Learning Management System. Franchisees and their managers may be required to attend up to two additional training courses per year, not exceeding ten business days annually, for which reasonable registration fees may be charged. Franchisees also agree to attend an annual meeting for up to four days, covering their own costs. Additionally, franchisees are required to actively participate in any designated JIMMY JOHN'S® Regional Advisory Franchisee Councils, contributing to council assessments.
Franchise Requirements
Ideal Candidate Profile
Jimmy John's seeks qualified individuals who are prepared to dedicate significant investment and effort to operate a restaurant specializing in gourmet deli sandwiches. Ideal candidates, including their owners, principals, management, and staff, are expected to possess strong business abilities crucial for success. Unless a franchisee qualifies as a 'Sophisticated Franchisee' (meaning they own and operate at least five limited-service restaurants), they must designate an 'Operations Partner' to manage the restaurant on-site daily, and this partner must hold at least 5% ownership in the franchise. All certified managers and employees interacting with customers must be fluent in English.
Industry Experience Required
No
Management Experience Required
Yes
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
retail
Owner Participation
hands-on
Territory Type
non-exclusive
Staffing Notes
For a Jimmy John's Restaurant, a minimum of ten full shifts each week must be covered by certified managers. During the first twelve months of operation, a first-time franchisee's first restaurant requires fourteen full shifts per week to be covered by certified managers. A 'full' shift runs from one hour before opening to shift change, or from shift change to ten minutes after closing. The Operations Partner for a first or second restaurant must work a minimum of five consecutive 'half' shifts per week, each on a different day. All certified managers and customer-facing employees are required to be fluent in English. Jimmy John's Brand Standards may further specify minimum staffing levels, certified manager training, and uniform dress codes.