Jason's DeliFranchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
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 2025 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]. Verdict grade: A. Run a live ROI scan →
Data last verified June 18, 2026 · figures per the 2025 FDD issuance
Overview
- Investment
- $1.7M – $2.5M
- 47th pct Service Resta…
- Avg gross sales
- N/A
- 28th pct Service Resta…
- Royalty
- 4.0%
- 3rd pct Service Resta…
- Units
- 236
- 45th pct Service Resta…
- SBA default
- 0.0%
- system-wide median varies by category
Quick verdict · Full-Service Restaurants · color = vs category peers
Green = >15% above Full-Service Restaurants avg · No shading = within ±15% · Red = >15% below avg · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
Only 0.0% of 14 SBA loans charged off, well below the 16% franchise average.
The system contracted 5% year-over-year. Investigate why units are closing.
Bottom line
- Total investment $1.7M – $2.5M including a $35K franchise fee, 4.0% ongoing royalty.
- No Item 19 financial performance data disclosed. The franchisor chose not to publish revenue figures.
- Verdict A (Top Quintile) with a risk score of 44/100. SBA loan charge-off rate of 0.0% across 14 loans (well below the franchise average, based on all SBA 7(a) franchise lending, 2010–2024).
- System 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
- Legal entity
- Deli Management, Inc.
- CEO title
- Chief Executive Officer, Treasurer and Director
- Troy Cormier
- Founder active
- Yes
- Original founder still leading the business
- Incorporated in
- TX
- HQ
- 350 Pine Street, Suite 1775, Beaumont, Texas 77701
- Auditor
- Grant Thornton LLP
- Audited financials
- Franchisor revenue
- $499.0M
- 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
Franchisees operate quick-service casual dining restaurants serving made-to-order sandwiches, salads, soups, and beverages. Daily operations include food preparation, inventory management, customer service, staffing (typically 15-30 employees per location), and compliance with corporate standards and training protocols.
- CEO
- Troy Cormier
- Headquarters
- TX
- Founded
- 1976
- FDD year
- 2025
- States available
- 27
FDD Item 7 · 2025 filing · 19 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
- Near category avg vs category
- Liquid capital req'd
- $20K – $35K
- Better than avg vs category
- Franchise fee
- $35K – $35K
- Better than avg vs category
- Royalty
- 4.0%
- percentage_of_gross · 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) | $33K – $33K |
| Total fee load | 4.0% of rev |
Financial Performance
This franchisor did not disclose financial performance representations in Item 19, or our extractor could not parse them.
vs Full-Service Restaurants averages
How Jason's Deli Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 236
- Opened
- 1
- Last reporting year
- Closed
- 5
- Terminated
- 0
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 0
- Term expired, not renewed (per Item 20)
- Turnover rate
- 2.1%
- Company-owned
- 163
- Corporate units in the system
- % franchised
- 31%
- vs corporate-owned
- Multi-unit owners
- 50.0%
- Net growth (yr3)
- -5.2%
- Net unit change last year
- 3-yr CAGR
- -7.6%
- Compounded over last 3 years
3-year detail · Item 20
- Opened (3yr)
- 1
- Closed (3yr)
- 1
- Transfers (3yr)
- 0
- Ceased ops
- 2.1%
- Units that stopped operating
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 25 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
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.
Risk analysis
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
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)
Three employment discrimination cases against Deli Management, Inc. d/b/a Jason's Deli: (1) Disability discrimination claim by Christie Hester in Dallas County Court, currently in discovery phase; (2) Pregnancy discrimination and wage retaliation claim by Felicia Gossett in U.S. District Court for District of Nebraska, currently on appeal after summary judgment granted in favor of franchisor; (3) Sex discrimination claim by Kelly Finley in Harris County District Court, scheduled for trial mid-2025.
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Grant Thornton LLP
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Supplier relationship · Items 8 & 16
- Franchisor sells you products: Yes
- Kickbacks from required suppliers: No
- Must buy proprietary products: Yes
- Restricted to system-approved products: Yes
- Can negotiate own supplier terms: No
Score breakdown · what drove the 44 / 100 rating
- 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
FDD Items 5, 6, 12, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 20 years |
|---|---|
| Renewal term | 10 years |
| Protected territory | No |
| Online sales rights | Granted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Required |
| Non-compete (years)ℹ | 2 years |
| Right of first refusalℹ | Yes |
| Termination notice | 30 days |
| Curable defaultsℹ | 2 |
| Mandatory arbitration | No |
| Jury trial waiver | Yes |
| Governing law | Texas |
| Litigation count | 3 |
View Item 3 litigation summary
Three employment discrimination cases against Deli Management, Inc. d/b/a Jason's Deli: (1) Disability discrimination claim by Christie Hester in Dallas County Court, currently in discovery phase; (2) Pregnancy discrimination and wage retaliation claim by Felicia Gossett in U.S. District Court for District of Nebraska, currently on appeal after summary judgment granted in favor of franchisor; (3) Sex discrimination claim by Kelly Finley in Harris County District Court, scheduled for trial mid-2025.
Items 10, 11
Training & Operations
- Classroom training
- 50 hrs
- On-the-job training
- 625 hrs
- Training location
- On-site and corporate
- Site selection
- franchisor
- Franchisor financing
- Offered
- Item 10
- POS system
- NCR / Aloha
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: NCR / Aloha
Item 20 · call current owners
Franchisee Contacts
88 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
Jason's Deli · FDD (2025) 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 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. 1 new units were opened in the latest reporting year.
Is Jason's Deli a good franchise to buy?
FranchiseVerdict rates Jason's Deli as a A-grade franchise with a risk score of 44 out of 100, 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?
If you represent Jason's Deli, you can request corrections or provide updated information.
Claim this brandOther Full-Service Restaurants franchises
Compare similar franchise opportunities in the Full-Service Restaurants category
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.