In this exclusive Franchise Chatter FDD Talk post, you’ll learn the following:

Section I – Estimated initial investment (franchise costs) for a Jimmy John’s franchise, based on Item 7 of the company’s 2024 FDD

Section II – Initial franchise fee, royalty fee, and marketing fee for a Jimmy John’s franchise, based on Items 5 and 6 of the company’s 2024 FDD

Section III – Number of franchised and company-owned Jimmy John’s outlets at the start of the year and the end of the year for 2021, 2022, and 2023, based on Item 20 of the company’s 2024 FDD

Section IV – News updates on the Jimmy John’s franchise opportunity

Section V – Presentation and analysis of Jimmy John’s financial performance representations (average revenues and/or profits), based on Item 19 of the company’s 2024 FDD, including information on the:

• 2020, 2021, 2022, and 2023 average unit volume for the franchised Jimmy John’s Restaurants that operated for Jimmy John’s entire applicable Fiscal Year and did not close for any period during the applicable Fiscal Year, separated by whether or not the franchised restaurant includes a drive-thru

• 2023 average, median, highest, and lowest unit volume for the 2,560 Jimmy John’s Restaurants, comprised of 40 that Jimmy John’s affiliate owns and operates and 2,520 that franchisees own and operate, that operated for Jimmy John’s entire 2023 Fiscal Year, and did not close for any period during the 2023 Fiscal Year

• 2023 average, median, highest, and lowest unit volume for the 2,585 Jimmy John’s Restaurants, comprised of 40 that Jimmy John’s affiliate owns and operates and 2,545 that franchisees own and operate, that operated during Jimmy John’s 2023 Fiscal Year, including the 25 Jimmy John’s Restaurants that temporarily closed for any period during the 2023 Fiscal Year due to remodels, relocations, damages due to weather, or transfer of ownership

Section VI – Key ratios, comparables, computations, and analyses for the Jimmy John’s franchise opportunity (exclusive content for Platinum subscribers)

Section I – Jimmy John’s Franchise Costs

• Initial Franchise Fee:  $35,000
• Real Estate/Rent (1 month):  $2,500 to $8,000
• Security Deposit:  $2,500 to $8,000
• Leasehold Improvement Costs:  $115,000 to $310,000
• Furniture, Fixtures, Signage, and Equipment (including Computer/Point-of-Sale System):  $115,000 to $166,000
• Architect:  $9,500 to $17,000
• Office Equipment:  $2,200
• Utility Deposits:  $1,000 to $2,000
• Opening Inventory and Supplies:  $6,000
• Grand Opening Event:  $3,000 to $5,000
• Training Expenses (out-of-pocket costs for up to 3 people):  $6,000 to $15,000
• Insurance:  $11,500 to $15,000
• Miscellaneous Expenses:  $2,000 to $10,000
• Additional Funds for 3 Months:  $50,000 to $75,000
• Total Estimated Jimmy John’s Franchise Costs (excluding real estate purchase costs):  $361,200 to $674,200

Section II – Jimmy John’s Initial Franchise Fee, Royalty Fee, and Marketing Fee

• Initial Franchise Fee:  $35,000
• Royalty:  6% of weekly Gross Sales
• Advertising and Development Fund:  up to 4.5% of weekly Gross Sales (currently the full 4.5%) or 2.25% for Non-Traditional Locations
• Cooperative Advertising Programs:  up to 2% of Gross Sales

Section III – Number of Franchised and Company-Owned Jimmy John’s Outlets

Franchised

2021

• Outlets at the Start of the Year:  2,659
• Outlets at the End of the Year:  2,616
• Net Change:  -41

2022

• Outlets at the Start of the Year:  2,616
• Outlets at the End of the Year:  2,597
• Net Change:  -19

2023

• Outlets at the Start of the Year:  2,597
• Outlets at the End of the Year:  2,604
• Net Change:  +7

Company-Owned

2021

• Outlets at the Start of the Year:  41
• Outlets at the End of the Year:  41
• Net Change:  0

2022

• Outlets at the Start of the Year:  41
• Outlets at the End of the Year:  40
• Net Change:  -1

2023

• Outlets at the Start of the Year:  40
• Outlets at the End of the Year:  40
• Net Change:  0

Section IV – News Updates on the Jimmy John’s Franchise

Section V – Financial Performance Representations (Average Revenues and/or Profits) for the Jimmy John’s Franchise (Item 19, 2024 FDD)

• These financial performance representations provide “AUVs,” or average unit volumes, for specific groups of Jimmy John’s Restaurants and specific time periods.

• “Unit volume” means the actual gross receipts of the Jimmy John’s Restaurants during the applicable time period, less sales tax and amounts for coupons and promotions.

• Jimmy John’s obtains the unit volumes for franchised Jimmy John’s Restaurants from weekly sales reports that franchisees submit to it. Jimmy John’s has not independently audited that information.

Part 1 – AUVs for Franchised Covered Restaurants With and Without Drive-Thrus From 2020-2023

• The financial performance representations in Part 1 reflect the historical total annual average unit volumes for all of the 2020 Franchised Covered Restaurants, 2021 Franchised Covered Restaurants, 2022 Franchised Covered Restaurants, and 2023 Franchised Covered Restaurants (as defined below), separated by whether or not the franchised restaurant includes a drive-thru.

2020 Annual AUVs

• All 2020 Franchised Covered Restaurants:  $766,166
• All 2020 Franchised Covered Restaurants With a Drive-Thru:  $860,029
• All 2020 Franchised Covered Restaurants Without a Drive-Thru:  $704,481

2021 Annual AUVs

• All 2021 Franchised Covered Restaurants:  $918,058
• All 2021 Franchised Covered Restaurants With a Drive-Thru:  $1,034,580
• All 2021 Franchised Covered Restaurants Without a Drive-Thru:  $851,969

2022 Annual AUVs

• All 2022 Franchised Covered Restaurants:  $907,848
• All 2022 Franchised Covered Restaurants With a Drive-Thru:  $1,016,004
• All 2022 Franchised Covered Restaurants Without a Drive-Thru:  $846,603

2023 Annual AUVs

• All 2023 Franchised Covered Restaurants:  $977,885
• All 2023 Franchised Covered Restaurants With a Drive-Thru:  $1,088,648
• All 2023 Franchised Covered Restaurants Without a Drive-Thru:  $912,115

Part 2 – 2023 Covered Restaurants (Restaurants Open for Full Year)

• The financial performance representations in Parts 2 and 3 reflect the ongoing impact that COVID-19 and other factors have had on the AUVs of Jimmy John’s Restaurants during Jimmy John’s 2023 fiscal year, from January 2, 2023 until December 31, 2023 (the “2023 Fiscal Year”).

• There were 2,644 Jimmy John’s Restaurants operating as of December 31, 2023. 2,560 of these Jimmy John’s Restaurants (the “2023 Covered Restaurants”), comprised of 40 that Jimmy John’s affiliate owns and operates (the “2023 Affiliate-Owned Covered Restaurants”) and 2,520 that franchisees own and operate (the “2023 Franchised Covered Restaurants”), operated for Jimmy John’s entire 2023 Fiscal Year and did not close for any period during the 2023 Fiscal Year.

• The table below reflects the actual historical average and median unit volumes for the 2023 Covered Restaurants, the 2023 Franchised Covered Restaurants, and the 2023 Affiliate-Owned Covered Restaurants for the 2023 Fiscal Year.

• The 2023 Covered Restaurants do not include the 25 Jimmy John’s Restaurants that temporarily closed for any period during the 2023 Fiscal Year due to remodels, relocations, damages due to weather, or transfer of ownership; the 59 Jimmy John’s Restaurants that first opened during the 2023 Fiscal Year, or the 53 Jimmy John’s Restaurants that permanently closed during the 2023 Fiscal Year, and all of these closed restaurants were open for at least 12 months before they closed.

All 2023 Covered Restaurants

• 2023 Annual AUV:  $980,969
• Number and Percentage Exceeding Average:  1,133 / 44%
• Highest Unit Volume:  $3,090,578
• Lowest Unit Volume:  $205,843
• Median Unit Volume:  $929,684

All 2023 Franchised Covered Restaurants

• 2023 Annual AUV:  $977,885
• Number and Percentage Exceeding Average:  1,113 / 44%
• Highest Unit Volume:  $3,090,578
• Lowest Unit Volume:  $205,843
• Median Unit Volume:  $927,222

All 2023 Affiliate-Owned Covered Restaurants

• 2023 Annual AUV:  $1,174,924
• Number and Percentage Exceeding Average:  19 / 48%
• Highest Unit Volume:  $2,049,511
• Lowest Unit Volume:  $354,017
• Median Unit Volume:  $1,146,409

Part 3 – 2023 Adjusted Covered Restaurants (Restaurants Partially Closed)

• The table below reflects the historical average and median unit volumes of not only the 2,554 Jimmy John’s Restaurants that operated for Jimmy John’s entire 2023 Fiscal Year and did not close for any period during the 2023 Fiscal Year, but also the additional 25 Jimmy John’s Restaurants that temporarily closed for any period during the 2023 Fiscal Year, due to remodels, relocations, damages due to weather, or transfer of ownership.

• Of these 2,585 Jimmy John’s Restaurants (the “2023 Adjusted Covered Restaurants”), Jimmy John’s affiliate owns and operates 40 (the “2023 Adjusted Affiliate-Owned Covered Restaurants”) and franchisees own and operate the other 2,545 (the “2023 Adjusted Franchised Covered Restaurants”).

• This third financial performance representation reflects the actual historical average and median unit volumes for the 2023 Adjusted Covered Restaurants, the 2023 Adjusted Franchised Covered Restaurants, and the 2023 Adjusted Affiliate-Owned Covered Restaurants for the 2023 Fiscal Year.

All 2023 Adjusted Covered Restaurants

• 2023 Annual AUV:  $976,963
• Number and Percentage Exceeding Average:  1,144 / 44%
• Highest Unit Volume:  $3,090,578
• Lowest Unit Volume:  $116,489
• Median Unit Volume:  $911,772

All 2023 Franchised Adjusted Covered Restaurants

• 2023 Annual AUV:  $973,818
• Number and Percentage Exceeding Average:  1,122 / 44%
• Highest Unit Volume:  $3,090,578
• Lowest Unit Volume:  $116,489
• Median Unit Volume:  $907,495

All 2023 Affiliate-Owned Adjusted Covered Restaurants

• 2023 Annual AUV:  $1,174,924
• Number and Percentage Exceeding Average:  19 / 48%
• Highest Unit Volume:  $2,049,511
• Lowest Unit Volume:  $354,017
• Median Unit Volume:  $1,146,409

• Franchised Covered Restaurants are located in various types of structures (for example, strip malls, shopping centers, food courts, and free-standing buildings) and various types of venues (for example, college campuses, downtown areas, metropolitan areas, and suburban areas). Affiliate-Owned Covered Restaurants are located primarily on college campuses.

• The Covered Restaurants offer primarily the same products and services that Jimmy John’s expects new Jimmy John’s Restaurants to offer, and the Franchised Covered Restaurants receive primarily the same services from Jimmy John’s that it expects new franchisees to receive.

• The actual average and median unit volumes do not reflect the costs of sales, operating expenses, or other costs or expenses that must be deducted from the gross sales figures to obtain your net income or profit.

• Some outlets have sold this amount. Your individual results may differ. There is no assurance that you will earn as much.

Section VI – Jimmy John’s Franchise Ratios, Comparables, Computations, and Analyses (Exclusive Content for Platinum Subscribers) ⬇️