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.
- Rated MODERATE with a risk score of 64/100. SBA loan default rate of 0.0% across 14 loans (below the industry average).
- 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
Yale framework · single-unit ROIC
Returns Analysis
Pulls Item 7 (investment) and Item 19 (revenue) from this brand's FDD into the Yale unlevered-ROIC formula. Override any input to stress-test it against your own assumptions.
The model · Yale framework
What would one Jason's Deli unit return on the cash you put in?
Unlevered ROIC · per unit
7%
Below typical band (30–60%)
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.
Item 7 · what it costs
The Vitals
Item 19
Financial Performance
This franchisor did not disclose financial performance representations in Item 19, or our extractor could not parse them.
Item 20 · unit dynamics
The Growth Chart
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 phone area codes (Item 20). Approximate — ported numbers may show the original state, not the franchisee's current location.
Government records
SBA Loan Data
Aggregated from SBA 7(a) loan disclosures, public data unique to FranchiseVerdict.
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.
Score breakdown · what drove the 64 / 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
Item 11
Training & Operations
Item 20
Franchisee Contacts
Phone numbers extracted directly from this brand's FDD Item 20. After purchase, you'll also receive a list of validation questions tailored to this brand.
Franchisee contacts
88 numbers
One-time purchase · CSV download · Validation questions included
FDD download
Jason's Deli · FDD (2025) PDF