Jimmy John'sFranchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
FranchiseVerdict summary · 2026
A Jimmy John's franchise requires a total initial investment of $366K – $728K, including a $35K franchise fee and an ongoing 6.0% royalty[2]. Per the 2025 FDD, average unit revenue was $986K[2]. SBA 7(a) loans show a 5.8% charge-off rate across 1,074 loans[1]. Verdict grade: A. Run a live ROI scan →
Data last verified June 18, 2026 · figures per the 2025 FDD issuance
Overview
- Investment
- $366K – $728K
- 68th pct Service Resta…
- Avg gross sales
- $986K
- 34th pct Service Resta…
- Royalty
- 6.0%
- 44th pct Service Resta…
- Units
- 2,689
- 97th pct Service Resta…
- SBA default
- 5.8%
- system-wide median varies by category
Quick verdict · Quick-Service Restaurants · color = vs category peers
Green = >15% above Quick-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
Franchising since 1993. Systems this mature have refined operations and brand recognition.
Franchised units fell from 2647 to 2597 over 3 years. Investigate why operators are leaving.
11 legal cases disclosed in the FDD. Read Item 3 before signing.
Large franchise systems benefit from brand recognition, supply chain leverage, and proven operations.
Bottom line
- Total investment $366K – $728K including a $35K franchise fee, 6.0% ongoing royalty.
- Average unit revenue of $986K/year (median $935K).
- Verdict A (Top Quintile) with a risk score of 32/100. SBA loan charge-off rate of 5.8% across 1074 loans (near or below the 16% franchise average, based on all SBA 7(a) franchise lending, 2010–2024).
- 11 litigation matters disclosed in Item 3, higher than typical. Review the summary for patterns (franchisor-initiated vs. franchisee-initiated).
Item 1 · who you're contracting with
The Franchisor
- Legal entity
- Jimmy John’s Franchisor SPV, LLC
- Parent company
- Inspire Brands, Inc.
- CEO title
- President and Board Member
- Paul J. Brown
- CEO experience
- 20 yrs
- Years in role or industry
- Incorporated in
- DE
- HQ
- Three Glenlake Parkway NE, Atlanta, Georgia 30328
- Auditor
- KPMG LLP
- Audited financials
- Franchisor revenue
- $152.9M
- vs $153.7M prior year
- Management churn noted
- Frequent turnover
- Item 2 disclosed frequent executive changes
Overview
About
Franchisees operate fast-casual sandwich shops focusing on 'freaky fast' delivery and in-store ordering. Day-to-day operations include managing labor scheduling, food prep, delivery logistics, inventory control, and driving local marketing—all within a vertically-integrated system with strict operational guidelines and limited autonomy.
- CEO
- Paul J. Brown
- Headquarters
- GA
- Founded
- 1983
- FDD year
- 2025
- States available
- 45
FDD Item 7 · 2025 filing · 14 line items
Initial investment breakdown
| Line item | Low | High | |
|---|---|---|---|
| Initial Franchise Feenot refundable | $35K | $35K | |
| Real Estate/Rent (1 month)not refundable | $3K | $8K | |
| Security Deposit | $3K | $8K | |
| Leasehold Improvementsnot refundable | $115K | $310K | |
| Furniture, Fixtures, Signage, and Equipment (including Computer/Point-of-Sale System)not refundable | $120K | $215K | |
| Architect/Design Servicesnot refundable | $10K | $22K | |
| Office Equipmentnot refundable | $2K | $2K | |
| Utility Deposits | $1K | $2K | |
| Opening Inventory and Suppliesnot refundable | $6K | $6K | |
| Grand Opening Eventnot refundable | $3K | $5K | |
| Training Expenses (out-of-pocket costs for up to 3 people)not refundable | $6K | $15K | |
| Insurancenot refundable | $12K | $15K | |
| Miscellaneous Expensesnot refundable | $2K | $10K | |
| Additional Funds - 3 monthsnot refundable | $50K | $75K | |
| Total initial investment | $366K | $728K |
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.
Single-unit · estimated
Returns at a glance
Indicative numbers using FDD Item 7 / Item 19 inputs and category-benchmarked cost ratios. Full single-unit, 25-unit portfolio, and LBO models (with every input editable to stress-test your own scenario) live on the financials page.
Store EBITDA · annual
$113K
11.5% margin
Unlevered ROIC
19%
EBITDA / total invested capital
Payback
5.4 yrs
cash-on-cash, unlevered
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $366K – $728K
- Below avg, review vs category
- Liquid capital req'd
- $50K – $75K
- Below avg, review vs category
- Franchise fee
- $35K
- Near category avg vs category
- Royalty
- 6.0%
- Gross Sales · typical 6–8%
- Ad fund
- 4.5%
- typical 3–5%
- Total fee load
- 10.5%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 6.0% of gross sales |
| Marketing / ad fund | 4.5% of gross sales |
| Transfer fee | $13K |
| Renewal fee | $10K |
| Inventory (initial) | $6K |
| Total fee load | 10.5% of rev |
Financial Performance
- Avg gross sales
- $986K
- Per unit, per year
- Median gross sales
- $935K
- Item 19 type
- Average Unit Volume (AUV)
- Sample size
- 2529 units
- vs category median 28 · large
- Range (low → high)
- $198K→$3.3M
- Cohort dispersion (min → max)
- Quartile band
- $596K→$1.5M
- Bottom 25% → top 25%
- Transparency tier
- full
- Categorical assessment of disclosure depth
- Transparency
- 4 / 5
- vs category median 4 / 5 · typical
Compared against 453 Quick-Service Restaurants brands
vs Quick-Service Restaurants averages
How Jimmy John's Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 2,689
- Opened
- 88
- Last reporting year
- Closed
- 29
- Turnover rate
- 1.1%
- Company-owned
- 42
- Corporate units in the system
- % franchised
- 98%
- vs corporate-owned
- Multi-unit owners
- 5.0%
- Net growth (yr3)
- +1.7%
- Net unit change last year
- 3-yr CAGR
- +1.9%
- Compounded over last 3 years
3-year detail · Item 20
- Opened (3yr)
- 7
- Closed (3yr)
- 55
- Non-renewed (3yr)
- 24
- Transfers (3yr)
- 170
- Transfer rate
- 6.3%
- Owners selling to other franchisees
- Termination rate
- 0.9%
- Franchisor-initiated terminations
- Ceased ops
- 2.1%
- Units that stopped operating
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 45 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
- Michigan
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
- 1,074
- Loan volume
- $465.1M
- Median loan
- $360K
- 50th percentile
- Charge-off rate
- 5.8%
- 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)
- 94.1%
- 5-yr charge-off
- 1.6%
- Loans approved 2021+
- Active lenders
- 204
- Defaults
- 46
Vintage analysis
Jimmy John's charge-off rate by loan vintage
Shaded area: recent vintages with few resolved loans; rates may change as loans mature.
Explore lender portfolios on Bank Reports or regional data on State Reports.
Premium insight
SBA Lending Report
Deep-dive into Jimmy John's'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 15 states
- Startup risk premium and job creation velocity
- 33-year lending trend
- SBA 504 real estate/equipment data
Instant access. No subscription.
Risk analysis
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
Jimmy John's presents moderate-to-caution risk: stagnant growth, undisclosed profitability, zero territorial protection, and persistent labor/privacy litigation create headwinds for franchisee ROI despite reasonable unit count and brand recognition.
Litigation (Item 3)
Two class action lawsuits filed against Jimmy John's Franchise, LLC: (1) Starks v. Jimmy John's LLC (alfalfa sprouts misrepresentation) - settled December 4, 2014, dismissed June 26, 2015; (2) Irwin v. Jimmy John's Franchise, LLC (credit card data breach) - amended complaint filed July 31, 2015, counts dismissed March 29, 2016.
Largest disclosed settlement: $725,000
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · KPMG 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 32 / 100 rating
- 01MINORStagnant unit growth (1.7% YoY) suggests mature/declining system momentum despite 2,689 locations
- 02MINORNo Item 19 (Average Net Income) disclosure prevents ROI validation — revenue of $986k alone doesn't indicate profitability
- 03MINORUnprotected territory creates direct competition risk; franchisor can approve nearby locations without restriction
- 04HIGHMulti-faceted litigation including joint-employer allegations poses wage/benefits liability exposure for franchisees
- 05MINORHigh initial investment ($366k–$728k) paired with 6% royalty + unverified profitability creates cash flow risk
- 06MINORData breach and biometric privacy claims signal operational/compliance vulnerabilities that could cascade to franchisees
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 | 10 years |
|---|---|
| Renewal term | 10 years |
| Allowed renewalsℹ | 1 |
| Territory type | none |
| Protected territory | No |
| Exclusive territoryℹ | No |
| Online sales rights | Granted |
| Franchisor can compete | Yes |
| Hire a manager? | Not allowed |
| Owner-operator | Required |
| Non-compete (years)ℹ | 2 years |
| Non-compete (miles)ℹ | 3 mi |
| Right of first refusalℹ | Yes |
| Transfer requires consent | Yes |
| Termination notice | 30 days |
| Termination groundsℹ | 2 |
| Curable defaultsℹ | 5 |
| Mandatory arbitration | No |
| Jury trial waiver | Yes |
| Governing law | Georgia |
| Litigation count | 11 |
View Item 3 litigation summary
Two class action lawsuits filed against Jimmy John's Franchise, LLC: (1) Starks v. Jimmy John's LLC (alfalfa sprouts misrepresentation) - settled December 4, 2014, dismissed June 26, 2015; (2) Irwin v. Jimmy John's Franchise, LLC (credit card data breach) - amended complaint filed July 31, 2015, counts dismissed March 29, 2016.
Items 10, 11
Training & Operations
- Classroom training
- 6 hrs
- On-the-job training
- 117 hrs
- Training location
- On-site and corporate
- Site selection
- franchisee
- POS system
- Signature Systems, Inc.
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: Signature Systems, Inc.
Item 20 · call current owners
Franchisee Contacts
2,802 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
Jimmy John's · FDD (2025) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Jimmy John's franchise?
The total investment to open a Jimmy John's franchise ranges from $366K – $728K, 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 Jimmy John's franchise owners earn?
According to Item 19 of the Jimmy John's FDD, the average gross sales per unit is $986K. The median is $935K. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
What is Jimmy John's's franchise failure rate?
Based on SBA 7(a) loan data, Jimmy John's has a charge-off rate of 5.8% across 1,074 loans, meaning 5.8% 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 Jimmy John's franchise locations are there?
As of their most recent FDD filing, Jimmy John's has 2,689 total units in the United States, including 2,647 franchised units and 42 company-owned units. 88 new units were opened in the latest reporting year.
Is Jimmy John's a good franchise to buy?
FranchiseVerdict rates Jimmy John's as a A-grade franchise with a risk score of 32 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.
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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.