Jason's Deli Franchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
Analysis by FranchiseVerdict Research · Methodology
Jason's Deli is a fast-casual franchise serving New York-style deli sandwiches, a salad bar, soups, and spuds with a fresh-food focus. Franchisees run restaurants managing food prep, catering, dine-in, and delivery.
FranchiseVerdict summary · 2026
A Jason's Deli franchise requires a total initial investment of $1.7M – $2.5M, including a $35K franchise fee and an ongoing 4.0% royalty[2]. The 2026 FDD does not disclose unit-level revenue (no Item 19). SBA 7(a) loans show a 0.0% charge-off rate across 14 loans[1]. FranchiseVerdict grade: A (Strongest tier), an editorial assessment, not investment advice. Run a live ROI scan →
Data last verified · figures per the 2026 FDD issuance
Overview
- Investment
- $1.7M – $2.5M
- 99th pct Service Resta…
- Avg gross sales
- N/A
- Royalty
- 4.0%
- 3rd pct Service Resta…
- Units
- 236
- 85th pct Service Resta…
- SBA charge-off
- 0.0%
- % of SBA 7(a) loans not repaid · median varies by category
Quick verdict · Quick-Service Restaurants · color = vs category peers
Green = favorable by >10% vs Quick-Service Restaurants avg · No shading = within ±10% · Red = unfavorable by >10% · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
Bottom line
- COSTTotal investment $1.7M – $2.5M including a $35K franchise fee, 4.0% ongoing royalty.
- RETURNSItem 21 figures are the CONSOLIDATED audited statements of Deli Management, Inc. (a Texas S corporation) and subsidiaries, the operating parent (no separate franchisor shell). Total revenue is dominated by company-owned deli sales ($420.98M) and distribution-center sales ($56.74M); franchise royalties are only ~$7.96M and franchise sales $51.5K. All figures in whole US dollars. Balance sheet reconciles: assets 380,977,785 = liabilities 389,099,913 + equity deficit (8,122,138). Negative stockholders' equity is driven by treasury stock (-$99.18M) and distributions, not operating losses; net income is strongly positive ($25.9M) and the deficit is improving year over year (-$24.4M in 2023 to -$8.1M in 2025).
- RISKVerdict A (Strongest tier), verdict score 79/100 (higher is better). SBA loan charge-off rate of 0.0% across 14 loans (well below the franchise average, based on all SBA 7(a) franchise lending, 2010–2025).
- DECLINESystem contracting at -7.6% CAGR over 3 years. Investigate whether closures are franchisor-driven (consolidation) or franchisee-driven (economics).
Item 1 · who you're contracting with
The Franchisor
Corporate structure & franchisor financials
- Legal entity
- Deli Management, Inc.
- Parent company
- None
- Predecessor
- Jason's Deli Corporation
- Prior franchisor entity
- CEO title
- Chief Executive Officer
- Troy Cormier
- Founder active
- Yes
- Original founder still leading the business
- Incorporated in
- Texas
- HQ
- 350 Pine Street, Suite 1775, Beaumont, TX 77701
- Auditor
- Grant Thornton LLP
- Audited financials
- Franchisor revenue
- $488.1M
- vs $497.2M prior year
- Management churn noted
- Frequent turnover
- Item 2 disclosed frequent executive changes
Independent franchisee associations
- Franchise Advisory Council (FAC)
Franchisee-led councils or alliances disclosed in Item 20. Indicates operator voice.
Overview
About
- CEO
- Troy Cormier
- Headquarters
- Texas
- Founded
- 1976
- FDD year
- 2026
- States available
- 23
Can you afford it, and what does the money buy?
Entry cost runs 221% above the typical quick-service restaurants franchise.
Source: FDD 2026 · Items 5–7
Full Item 7 breakdown19 line items
Initial investment breakdown
| Line item | Low | High | |
|---|---|---|---|
| Initial Franchise Fee | $35K | $35K | |
| Development Fee | $18K | $35K | |
| Travel and Living Expenses While Training | $18K | $18K | |
| Build Out or Remodeling of 4,500-5,000 sq. ft. Premises | $950K | $1.6M | |
| Equipment: Fabricated and Buyout Equipment | $460K | $460K | |
| Equipment: Furniture | $32K | $32K | |
| Equipment: Small Wares | $21K | $21K | |
| Equipment: Signage | $38K | $100K | |
| Administrative and Miscellaneous: Pre-Opening Advertising, Deposits (rent, utilities, sales tax) | $5K | $20K | |
| Licenses | $10K | $10K | |
| Interim Interest Payments / Pre-opening Training Personnel from Existing Delis | $70K | $125K | |
| Insurance | $5K | $15K | |
| Online Ordering Set-Up Costs and Monthly Hosting | $250 | $250 | |
| Point-Of-Sale System | $4K | $6K | |
| Loyalty Platform Software | $60 | $60 | |
| Delivery Fleet Management | $65 | $65 | |
| System Email | $150 | $150 | |
| Initial Inventory | $33K | $33K | |
| Additional Funds - 3 months | $20K | $35K | |
| Total initial investment | $1.7M | $2.5M |
Line items extracted from FDD Item 7. Ranges reflect the franchisor's stated low and high per line. Total is the sum of line-item lows / highs — actual costs may fall outside this range depending on market and build-out scope.
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $1.7M – $2.5M
- Bottom third — review vs category
- Liquid capital req'd
- $20K – $35K
- Top 40% of category vs category
- Franchise fee
- $35K – $35K
- Middle of category vs category
- Royalty
- 4.0%
- formula · typical 6–8%
- Ad fund
- 0.0%
- typical 3–5%
- Total fee load
- 4.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 4.0% of gross sales |
| Marketing / ad fund | 0.0% of gross sales |
| Transfer fee | $7K |
| Renewal fee | $5K |
| Inventory (initial) | $54K – $54K |
| Total fee load | 4.0% of rev |
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
Jason's Deli did not disclose financial performance in FDD Item 19. The ROIC and return models require Item 19 revenue. Without it all inputs are estimates. You can still run the calculator with your own assumptions by entering an expected revenue figure.
Returns model · single-unit ROIC
What would one Jason's Deli unit return on the cash you put in?
Unlevered ROIC · per unit
Estimated return on your total franchise investment, before any debt financing.
6%
Below the 30–60% attractive-franchise band
These models are for research and scenario planning only. Not investment advice. Actual results depend on your specific location, management, and market conditions. Consult a franchise attorney and accountant before signing any franchise agreement.
Item 19 · Source: 2026 FDD
Financial Performance
Item 21 figures are the CONSOLIDATED audited statements of Deli Management, Inc. (a Texas S corporation) and subsidiaries, the operating parent (no separate franchisor shell). Total revenue is dominated by company-owned deli sales ($420.98M) and distribution-center sales ($56.74M); franchise royalties are only ~$7.96M and franchise sales $51.5K. All figures in whole US dollars. Balance sheet reconciles: assets 380,977,785 = liabilities 389,099,913 + equity deficit (8,122,138). Negative stockholders' equity is driven by treasury stock (-$99.18M) and distributions, not operating losses; net income is strongly positive ($25.9M) and the deficit is improving year over year (-$24.4M in 2023 to -$8.1M in 2025).
Operator outlook
What the numbers say
Data-driven interpretation of this brand's financial disclosures, fee structure, and system trajectory.
Fee burden
Total ongoing fee load of 4.0% — below the Quick-Service Restaurants average of 7.9%.
Disclosure
Franchisor chose not to disclose financial performance representations. You will need to gather unit economics directly from existing franchisees.
Operator retention
System contracting at -7.6% CAGR over 3 years. Investigate whether closures are franchisor-driven consolidation or franchisee exits.
Multi-unit rate
50% of franchisees own multiple units, a moderate multi-unit rate.
Source: FDD Item 19 financial performance representations and publicly filed FDD data. Past performance is not indicative of future results. Verify all figures with the franchisor and current franchisees before making any investment decision.
vs Quick-Service Restaurants averages
How Jason's Deli Compares
Is the system healthy?
Source: FDD 2026 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 236
- Opened
- 0
- Last reporting year
- Closed
- 0
- Terminated
- 0
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 0
- Term expired, not renewed (per Item 20)
- Turnover rate
- 5.5%
- Company-owned
- 163
- Corporate units in the system
- % franchised
- 31%
- vs corporate-owned
- Multi-unit owners
- 50.0%
- Net growth (3-yr)
- -7.6%
- Net unit change over 3 years
- 3-yr CAGR
- -7.6%
- Compounded over last 3 years
3-year detail · Item 20
- Opened (3yr)
- 2
- Closed (3yr)
- 4
- Terminated (3yr)
- 0
- Non-renewed (3yr)
- 0
- Transfers (3yr)
- 0
- Reacquired (3yr)
- 0
- Franchisor bought back
- Ceased ops
- 2.1%
- Units that stopped operating
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 17 states with active franchisees
The Territory Map
Derived from franchisee contact records. Shows states with at least one current operator. Not where the franchisor is registered to sell new units (that data is re-extracting in a future refresh).
States derived from franchisee contact records (FDD Item 20). Shows states with at least one current operator on file. Full state registration data (Item 12) will appear on a future FDD refresh.
Available to sell in · Item 12
- Indiana
- Maryland
States where the franchisor is registered to sell new franchises (FDD registration filings).
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA 7(a) and 504 loan disclosures, public data unique to FranchiseVerdict.
- Total loans
- 14
- Loan volume
- $10.3M
- Median loan
- $600K
- 50th percentile
- Charge-off rate
- 0.0%
- rates vary by category · see methodology
Historical SBA 7(a) lending data, not predictive of future performance. How SBA charge-off rates are calculated
- Repayment rate (PIF)
- 100.0%
- 5-yr charge-off
- N/A
- Loans approved 2021+
- Active lenders
- 11
- Defaults
- 0
- Typical loan rate
- 6.4%
- avg rate to borrowers
- Franchised industry avg
- 21.5%
- brand beats franchise avg ↓
- Jobs supported
- 708
- 6.9 per loan
- Lender concentration
- 14%
- top lender's share
Borrower mix: 0% went to startups / new businesses, 100% to established operators
Franchise vs independent — in limited-service restaurants, franchised businesses charge off at 21.5% vs 25.0% for independents — franchising is associated with 14% lower SBA default risk in this category.
Top lenders financing Jason's Deli franchisees
Showing 3 of 11 lenders. The full breakdown — every lender, state distribution, interest rates & risk ratings — is in the SBA Lending Report below.
Explore lender portfolios on Bank Reports or regional data on State Reports.
Premium insight
SBA Lending Report
Deep-dive into Jason's Deli's SBA lending history: lender network, geographic footprint, interest rates, and more.
SBA Lending Report
- Principal loss rate and NAICS industry benchmark
- 10 lenders with concentration factor
- Per-state charge-off rates across 6 states
- Startup risk premium and job creation velocity
- 9-year lending trend
Instant access. No subscription.
With a 0.0% charge-off rate across 14 loans, banks have historically viewed this brand favorably for lending.
What could kill this investment?
SBA loans charge off at 0.0% — 100% below the 16.0% national norm, i.e. lower lender-observed risk.
Source: SBA 7(a) FOIA · FDD Items 3, 21
Risk analysis
FranchiseVerdict rating + FDD Items 3, 4, 8, 16, 21
Risk & Legal
Jason's Deli presents HIGH RISK due to a contracting franchise system, undisclosed financials, going concern uncertainty, multiple employment litigation cases, and unprotected territories—making it difficult to project returns on a $1.7M+ investment.
Litigation (Item 3)
No litigation disclosed in Item 3.
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Grant Thornton LLP
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
ⓘ These are the parent company's consolidated financials (the parent guarantees the franchisor), not this brand's standalone results — the figure reflects the whole corporate group, not this brand alone.
Supplier relationship · Items 8 & 16
- Franchisor sells you products: Yes
- Kickbacks from required suppliers: Yes
- Must buy proprietary products: Yes
- Restricted to system-approved products: Yes
- Can negotiate own supplier terms: No
Score breakdown · what drove the 79 / 100 verdict
- 01MINORSystem shrinking significantly (-5.2% YoY with only 236 units remaining suggests below critical mass)
- 02MINORNo financial disclosure (Item 19 absent) — cannot validate $1.7M-$2.5M investment ROI claims
- 03HIGHGoing Concern status 'False' indicates franchisor financial instability or viability questions
- 04MINORMultiple employment discrimination lawsuits (disability, pregnancy, sex) suggest systemic HR/compliance issues
- 05MINORNo protected territory — franchisees compete directly with other Jason's Deli locations and must defend market share
- 06MINORHigh initial investment ($1.7M+) with mandatory $2,500/month minimum royalty even during slow periods
- 07MINORDeclining unit count suggests franchisees are not renewing or existing locations are underperforming
Severity inferred from the FDD text · not a regulatory classification
What are you signing up for?
Ongoing fees run about 4.0% of sales (royalty + ad fund), before rent and labor.
Source: FDD 2026 · Items 11, 12, 17
FDD Items 12, 15, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 20 years |
|---|---|
| Renewal term | 10 years |
| Territory type | none |
| Protected territory | No |
| Exclusive territoryℹ | No |
| Territory radius | 25 mi |
| Online sales rightsℹ | Granted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Required |
| Non-compete (years)ℹ | 2 years |
| Non-compete (miles)ℹ | 25 mi |
| Right of first refusalℹ | Yes |
| Transfer requires consent | Yes |
| Termination notice | 30 days |
| Termination groundsℹ | 17 |
| Curable defaultsℹ | 6 |
| Mandatory arbitration | No |
| Jury trial waiver | No |
| Governing law | Texas |
| Litigation count | 0 |
View Item 3 litigation summary
No litigation disclosed in Item 3.
Items 10, 11
Training & Operations
- Classroom training
- 50 hrs
- On-the-job training
- 625 hrs
- Training location
- Closest geographic corporate training location to the Deli to be opened, as determined by the Development Department (or a certified franchisee-owned Deli)
- Ongoing training
- Required
- Time to open
- 8 mo
- From signing to launch
- Site selection
- franchisee
- Franchisor financing
- Not offered
- Item 10
- POS system
- NCR (Aloha QS / Aloha Takeout / NCR Payments / Aloha Configuration Center / Aloha Insight)
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: NCR (Aloha QS / Aloha Takeout / NCR Payments / Aloha Configuration Center / Aloha Insight)
Item 20 · call current owners
Franchisee Contacts
77 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
Jason's Deli · FDD (2026) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Jason's Deli franchise?
The total investment to open a Jason's Deli franchise ranges from $1.7M – $2.5M, with an initial franchise fee of $35K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do Jason's Deli franchise owners earn?
Jason's Deli does not disclose average franchise owner earnings in their FDD Item 19. Not all franchisors are required to make financial performance representations. We recommend asking existing franchisees directly about their financial experience.
What is Item 19 in the Jason's Deli FDD?
The FDD section where a franchisor may disclose financial performance of its outlets. Disclosure is optional and formats vary; figures are typically gross sales, which is revenue before expenses, not profit. FranchiseVerdict extracts these figures directly from the Jason's Deli FDD and qualifies whose outlets they describe.
What is Jason's Deli's franchise failure rate?
Based on SBA 7(a) loan data, Jason's Deli has a charge-off rate of 0.0% across 14 loans, meaning 0.0% of franchise loans were charged off. Charge-off rates are one proxy for franchise risk, though they do not capture all closures. This data comes from FOIA-sourced SBA lending records.
How many Jason's Deli franchise locations are there?
As of their most recent FDD filing, Jason's Deli has 236 total units in the United States, including 73 franchised units and 163 company-owned units.
Is Jason's Deli a good franchise to buy?
FranchiseVerdict rates Jason's Deli as a A-grade franchise with a verdict score of 79 out of 100 (higher is better), based on our analysis of investment costs, revenue data, SBA loan performance, and growth trends. Our rating is based solely on publicly available FDD and government data; we recommend speaking with current franchisees before making any investment decision. This is not investment advice.
Data sourced from public FDD filings and SBA 7(a) FOIA records. Not financial advice.
For franchisors
Are you the franchisor?
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Data extracted from public FDD filings and SBA 7(a) loan disclosures (FOIA). This information is provided for research purposes only and does not constitute financial, legal, or investment advice. Verify all figures with the franchisor's current Franchise Disclosure Document before making any investment decision.