Jimmy John's Franchise Cost, Revenue & Review 2026
- Investment
- $366K – $728K
- Disclosed sales
- $986K
- gross sales, not profit
- SBA charge-off
- 5.8%
- on 1,074 loans
Data from FDD filing + SBA 7(a) records
Analysis by FranchiseVerdict Research · Methodology
Jimmy John's is a fast-casual sandwich franchise built on its freaky-fast delivery of made-to-order subs. Franchisees run tightly systemized shops focused on speed, delivery logistics, and in-store ordering.
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]. FranchiseVerdict grade: A (Strongest tier), an editorial assessment, not investment advice. Run a live ROI scan →
Sources, dates and evidence
FDD issued: · Data extracted: · Last cited check: · Staleness risk: medium - issued 12 to 24 months ago; a newer filing is likely on file
Evidence: strong✓ Investment (Item 7)✓ Item 19 status✓ Units and owners (Item 20)✓ SBA loan coverage✓ Litigation (Item 3)✓ Financial statements (Item 21)✓ Franchisor identityhow this is scored8 of 8 headline figures on this page cite a page of the filing.
Overview
- Investment
- $366K – $728K
- 60th pct Service Resta…
- Avg gross sales
- $986K
- 19th pct Service Resta…
- Royalty
- 6.0%
- 48th pct Service Resta…
- Units
- 2,689
- 95th pct Service Resta…
- SBA charge-off
- 5.8%
- % 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 median · 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 $366K – $728K including a $35K franchise fee, 6.0% ongoing royalty.
- RETURNSAverage unit revenue of $986K/year (median $935K).
- RISKVerdict A (Strongest tier), verdict score 71/100 (higher is better). 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, 2010–2025).
- GROWTHPositive: net +43 franchised outlets in the latest year (88 opened, 43 closed) (Item 20).
- LEGAL14 litigation matters disclosed in Item 3, higher than typical. Of these, 10 name the franchisor itself, 4 its parent, affiliates or predecessor. Pending claims are allegations, not findings.
Item 1 · who you're contracting with
The Franchisor
Corporate structure & franchisor financials
- Legal entity
- Jimmy John's Franchisor SPV, LLC
- Parent company
- Inspire Brands, Inc.
- FDD Item 1, page 8 of the 2025 FDD
- Predecessor
- Jimmy John's Franchise, LLC (JJF)
- Prior franchisor entity
- 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
- $153.7M
- vs $152.9M prior year
- Management churn noted
- Frequent turnover
- Item 2 disclosed frequent executive changes
Same owner · FDD Item 1, page 8
6 other brands on this site name Inspire Brands, Inc. as parent or ultimate parent in their own FDD.
Portfolio: Inspire Brands
Grouped by the owner's name as each filing prints it (this page: the 2025 FDD). Spelling variants of the same group may be listed apart; a brand is never grouped with an owner its filing does not name.
Overview
About
- CEO
- Paul J. Brown
- Headquarters
- GA
- Founded
- 2017
- FDD year
- 2025
- States available
- 45
Can you afford it, and what does the money buy?
Entry cost runs 13% above the typical quick-service restaurants franchise.
Source: FDD 2025 · Items 5–7
Full Item 7 breakdown14 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.
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $366K – $728K
- Middle of category vs category
- Liquid capital req'd
- $50K – $75K
- Bottom third — review vs category
- Franchise fee
- $35K – $35K
- Middle of category vs category
- Royalty
- 6.0%
- 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 – $6K |
| Total fee load | 10.5% of rev |
What do units actually make?
Average unit sales land near the quick-service restaurants norm.
Source: FDD 2025 · Item 19
Single-unit · not modelled
Returns at a glance
An FDD discloses gross sales, not profit, and the operating costs that turn one into the other are in no filing. We publish no modelled return for Jimmy John's until someone supplies them — yours, in the models below.
—
Not modelled yet
An FDD discloses gross sales, not profit. We hold no sourced figure for COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.
Total invested capital · disclosed
$610K
Item 7 initial investment plus working capital, as filed — the one figure here that needs no assumption.
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
What one unit earns on your invested capital
Model A · Single-Unit Return
Computes unlevered return on invested capital (ROIC) for a single franchise unit, read against the 30–60% reference band · Yale SOM, Post-MBA Path Exhibit 2 (2023). Below that band a passive index fund likely outperforms; above it the franchisor has pricing power you're subsidizing.
Note: Item 19 revenue is what the franchisor discloses, and it is the top line only — gross sales are not profit. No FDD discloses the operating costs that turn one into the other, so those fields start empty and nothing is modelled until you supply them from your own lease quote, labor market and build-out budget.
Returns model · single-unit ROIC
What would one Jimmy John's unit return on the cash you put in?
Illustrative category typicals — not sourced to any filing, survey or sample. Replace them with figures from franchisee validation calls before you rely on the output.
Unlevered ROIC · per unit
Your modelled return on total invested capital, before any debt financing.
—
An FDD discloses gross sales, not profit. We hold no sourced figure for COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.
What 25 units return when you use SBA financing
Model B · Return on Equity: Debt-Financed Acquisition
Models a 25-unit portfolio acquisition financed with an SBA 7(a) loan. Shows equity IRR (your return on cash invested), DSCR (how safely the cash flow covers debt service), and the capital stack (SBA + seller + equity breakdown).
This is the “search fund” or “entrepreneurship through acquisition” scenario: you buy an existing multi-unit operator, use leverage to amplify returns, and either operate or hire management. The 25-unit size is the typical minimum for an SBA-backed franchise portfolio acquisition to pencil as a full-time income.
What “return on equity” means here: if you put in $500K of your own cash and the business generates enough EBITDA to pay down debt and grow, your equity IRR is the annual return on that $500K, including the value created when you eventually sell. Target IRR for a search fund is typically 25–35%.
Not modelled yet
An FDD discloses gross sales, not profit. We hold no sourced figure for COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.
A 25-unit return is built on a per-unit EBITDA. Fill in the operating costs in Model A above and this model runs on that figure, or take the whole scenario to the full ROI workbench, where the portfolio and LBO models accept your own per-unit economics directly.
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: 2025 FDD
Financial Performance
- Avg gross sales
- $986K
- Per unit, per year
- Median gross sales
- $935K
Gross sales are revenue before expenses — not profit. Actual owner earnings depend on rent, labor, royalties, marketing fees, and debt service.
- Item 19 type
- AUV (Average Unit Volume = Gross Sales)
- Sample size
- 2,529 outlets
- vs category median 19 · large
- Range (low → high)
- $198K→$3.3MCited, not corroborated — printed on page 80 of the 2025 FDD. Nothing else in our record independently restates or re-derives it.
- Cohort dispersion (min → max)
- Quartile band
- $596K→$1.5M
- Bottom 25% → top 25%
- Reporting year
- 2024
- Fiscal year the figures cover
- Source filing
- FDD 2025
- Disclosed in the 2025 filing, covering 2024
- Transparency
- 4 / 10
- vs category median 4 / 10 · typical
Compared against 781 Quick-Service Restaurants brands
Operator outlook
What the numbers say
Data-driven interpretation of this brand's financial disclosures, fee structure, and system trajectory.
Unit economics
Average unit generates $986K/year in gross sales. Revenue-to-investment ratio: 1.8x.
Fee burden
Total ongoing fee load of 10.5% — above the Quick-Service Restaurants median of 7.5%.
Disclosure
Transparency score 4/10 — this franchisor discloses detailed breakdowns (quartiles, segments, or cohort data). Buyers can model unit economics with higher confidence.
Operator retention
System roughly stable (+1.9% 3-year CAGR) with 2,689 units.
Multi-unit rate
Only 5% of franchisees own multiple units. Could indicate challenging economics or a young system where operators haven't had time to expand.
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 medians
How Jimmy John's Compares
Category median of published Quick-Service Restaurants brands that report the figure; the middle half spans the 25th to 75th percentile and n counts the brands behind it. Medians are used because a few very large systems pull an average far from the typical brand. Revenue is disclosed gross sales, not profit.
Is the system healthy?
Source: FDD 2025 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 2,689
- Opened
- 88
- Last reporting year
- Closed
- 43
- Terminated
- 1
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 13
- Term expired, not renewed (per Item 20)
- Turnover rate
- 1.6%
- Company-owned
- 42
- Corporate units in the system
- % franchised
- 98%
- vs corporate-owned
- Multi-unit owners
- 5.0%
- Net growth (3-yr)
- -0.7%
- Net unit change over 3 years
- 3-yr CAGR
- +1.9%
- Compounded over last 3 years
Last fiscal year · Item 20 exits and transfers
- Terminated
- 1
- Not renewed
- 13
- Transferred
- 170
- Reacquired
- 0
- Franchisor bought back
- 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).
Where the owners are · Item 20 owner list
2,781 current owners across 45 states; 20 former (terminated, transferred or not renewed) listed separately.
- IL 285
- TX 204
- MI 197
- FL 154
- OH 139
- IN 132
- WI 114
- MN 111
- CO 106
- MO 101
- IA 88
- WA 88
- +33 more states
Counts only, from the list the franchisor prints in Item 20. Names and phone numbers are for your own due diligence and are not shown here.
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%
- on 1,074 loans · 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
- Typical loan rate
- 6.2%
- avg rate to borrowers
- Franchised industry avg
- 10.8%
- brand beats franchise avg ↓
- Jobs supported
- 26,363
- 6.5 per loan
- Lender concentration
- 14%
- top lender's share
Borrower mix: 47% went to startups / new businesses, 53% to established operators
Franchise vs independent — in limited-service restaurants, franchised businesses charge off at 10.8% vs 10.0% for independents — franchising is associated with 8% higher SBA default risk in this category.
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.
Top lenders financing Jimmy John's franchisees
Showing 3 of 204 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.
Lender network · 7(a) + 504
SBA Lending Report
Full lending analysis for Jimmy John's from SBA 7(a) FOIA data.
- Principal loss rate
- 3.1%
- Avg SBA guarantee
- 74%
- Avg interest rate
- 6.16%
- Avg chargeoff amount
- $282K
- Lender concentration
- 13.9%
- Job velocity
- 6.5 per $100K
- Startup risk premium
- +16.2pp
- NAICS benchmark
- 8.7%
- NAICS 722513
- Jobs supported
- 26,363
Top SBA lendersTop lender holds 14% of loans
| # | Lender | Loans | Volume | Default % |
|---|---|---|---|---|
| 1 | Wells Fargo Bank National Association | 129 | $59.8M | 12.1% |
| 2 | JPMorgan Chase Bank, National Association | 59 | $17.9M | 0.0% |
| 3 | The Huntington National Bank | 55 | $16.2M | 0.0% |
| 4 | Readycap Lending, LLC | 31 | $16.8M | 14.3% |
| 5 | Stearns Bank National Association | 31 | $11.0M | 13.3% |
| 6 | PNC Bank, National Association | 27 | $7.0M | 8.0% |
| 7 | BankVista | 21 | $14.1M | 0.0% |
| 8 | TD Bank, National Association | 20 | $8.5M | 25.0% |
| 9 | First-Citizens Bank & Trust Company | 20 | $7.6M | 0.0% |
| 10 | Ameris Bank | 20 | $8.1M | 15.8% |
Geographic failure vector
| State | Loans | Defaults | Rate |
|---|---|---|---|
| TXTexas | 83 | 6 | 9.1% |
| ILIllinois | 72 | 1 | 1.4% |
| MNMinnesota | 65 | 1 | 2.0% |
| OHOhio | 65 | 5 | 10.0% |
| MIMichigan | 56 | 0 | 0.0% |
| FLFlorida | 55 | 7 | 14.0% |
| GAGeorgia | 50 | 0 | 0.0% |
| INIndiana | 44 | 0 | 0.0% |
| CACalifornia | 40 | 2 | 5.9% |
| MOMissouri | 34 | 1 | 3.4% |
SBA 7(a) lending trend
Borrower profile
Source: SBA 7(a) + 504 FOIA loan-level data, matched by FranchiseVerdict
What could kill this investment?
SBA loans charge off at 5.8% — 64% 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
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)
Subject: the franchisor is a named party (defendant).
11 disclosed cases involving JJF and related entities including class actions (alfalfa sprouts, data breach, overtime/FLSA, non-compete agreements, cookie labeling), franchisee arbitrations (CWL Investments transfer dispute, C&C Resources non-renewal), and biometric privacy suit. Most cases settled. One pending (C&C Resources liability phase; Dominick Polizzi biometric case). Three additional affiliate disclosure cases (Arby's and Dunkin' no-poaching provisions, Dunkin' data breach) included in Item 3.
Largest disclosed settlement: $1,835,000
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: No
- 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 71 / 100 verdict
- 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
Litigation case detail14 matters · Item 3
Litigation cases
The franchisor
Pending (1)
C&C Resources, Inc. v. Jimmy John’s Franchise, LLC
pendingBrought by a franchisee · filed 2021-08-16 · American Arbitration Association · 01-21-0016-1707
“C&C Resources, Inc. v. Jimmy John’s Franchise, LLC (American Arbitration Association Case No. 01-21-0016-1707). On August 16, 2021, C&C Resources, Inc. and Carl Dissette (“Claimants”), a franchisee and its owner, filed a Demand and Request for Emergency Relief”Page 26 of the 2025 FDD, Item 3
Outcome:“The interim award resolves the liability issues, with a future hearing to be scheduled to address damages and attorneys’ fees.”
Concluded (9)
Erwin v. Jimmy John’s LLC, et al.
settledThird-party plaintiff · filed 2020-10-01 · United States District Court for the Southern District of Illinois (removed from the Circuit Court of St. Clair County, Illinois) · 3:20-cv-1268
“Erwin v. Jimmy John’s LLC, et al. (United States District Court for the Southern District of Illinois, Case No. 3:20-cv-1268).”Page 25 of the 2025 FDD, Item 3
Outcome:“On September 23, 2021, the parties, along with the plaintiff in the Martin v. Jimmy John’s Franchise, LLC, et al. mentioned above, entered into a Confidential Settlement Agreement and Release under which JJF and Jimmy John’s LLC agreed to pay all plaintiffs under both cases collectively a one-time settlement of $690,000,”
Martin v. Jimmy John’s Franchise, LLC, et al.
settledThird-party plaintiff · filed 2020-01-04 · United States District Court for the Western District of Missouri (removed from the Circuit Court of Jackson County, Missouri) · 4:20-cv-00415-RK
“Martin v. Jimmy John’s Franchise, LLC, et al. (United States District Court for the Western District of Missouri, Case No. 4:20-cv-00415-RK).”Page 25 of the 2025 FDD, Item 3
Outcome:“On September 23, 2021, the parties, along with the plaintiffs in the Erwin v. Jimmy John’s LLC, et al. mentioned below, entered into a Confidential Settlement Agreement and Release under which JJF and Jimmy John’s LLC agreed to pay all plaintiffs under both cases collectively a one-time settlement of $690,000,”
Patel v. Jimmy John’s Franchise, LLC
settledBrought by a franchisee · filed 2020-09-08 · Circuit Court of Cook County, Law Division · 2020 L 009628
“Patel v. Jimmy John’s Franchise, LLC (Circuit Court of Cook County, Law Division, Case No. 2020 L 009628).”Page 25 of the 2025 FDD, Item 3
Outcome:“On September 14, 2021, the parties entered into a Settlement Agreement and Mutual Release under which JJF committed to pay Franchisee a one-time payment of $10,000” (page 26)
Conrad v. Jimmy John’s Franchise, LLC, et al.
settledThird-party plaintiff · filed 2018-01-24 · United States District Court for the Southern District of Illinois, East St. Louis Division · 3:18-cv-00133
“Conrad v. Jimmy John’s Franchise, LLC, et al. (United States District Court for the Southern District of Illinois, East St. Louis Division, Case No. 3:18-cv-00133).”Page 24 of the 2025 FDD, Item 3
Outcome:“On November 5, 2021, the parties entered into a Confidential Settlement Agreement and Release under which JJF, JJE and Jimmy John’s LLC agreed to pay plaintiff a one-time payment of $10,000”
CWL Investments, LLC, et al. v. Jimmy John’s Franchise, LLC & James North
judgmentBrought by a franchisee · filed 2017-06-20 · American Arbitration Association · AAA No. 01-17-0003-6022
“CWL Investments, LLC, et al. v. Jimmy John’s Franchise, LLC & James North (American Arbitration Association, filed June 20, 2017, AAA No. 01-17-0003-6022).”Page 24 of the 2025 FDD, Item 3
Outcome:“This resulted in an award to CWL of $3.5 million in compensatory damages. The parties separately stipulated to an award of attorneys’ fees and costs in the amounts of $1 million and $367,239, respectively. The case has now concluded.”
In Re: Jimmy John’s Overtime Litigation (Brunner v. Jimmy John’s, LLC, et al.; Watson v. Jimmy John’s, LLC, et al.; Whiton v. Jimmy John’s LLC, et al.)
settledThird-party plaintiff · filed 2016 · United States District Court for the Northern District of Illinois, Eastern Division · 14-cv-5509, 15-cv-1681, and 15-cv-6010
“In Re: Jimmy John’s Overtime Litigation (United States District Court for the Northern District of Illinois, Eastern Division, Case Nos. 14-cv-5509, 15-cv-1681, and 15-cv-6010).”Page 23 of the 2025 FDD, Item 3
Outcome:“Under the terms of the Settlement, Defendants paid approximately $1,835,000 to resolve all remaining claims and the parties agreed to a mutual release and the dismissal of the lawsuit. On June 8, 2021, the Court granted final approval of the proposed settlement, and on June 15, 2021, the Court closed the matter.”
People of the State of Illinois v. Jimmy John’s Enterprises, LLC and Jimmy John’s Franchise, LLC
concludedGovernment or regulatory action · filed 2016-06-08 · Circuit Court of Cook County, Chancery Division · 2016CH07746
“People of the State of Illinois v. Jimmy John’s Enterprises, LLC and Jimmy John’s Franchise, LLC (Circuit Court of Cook County, Chancery Division, Case No. 2016CH07746).”Page 23 of the 2025 FDD, Item 3
Outcome:“by agreement of the parties, the court entered a Final Order and Consent Decree under which JJF and JJE collectively agreed to pay the ILAG $100,000” (page 24)
Irwin v. Jimmy John’s Franchise, LLC, et al.
settledThird-party plaintiff · filed 2015 · United States District Court for the Central District of Illinois, Urbana Division · 2:14-cv-02275-HAB
“Irwin v. Jimmy John’s Franchise, LLC, et al. (United States District Court for the Central District of Illinois, Urbana Division, Case No. 2:14-cv-02275-HAB).”Page 22 of the 2025 FDD, Item 3
Outcome:“On December 6, 2016, the parties entered into a Settlement and Release Agreement, which provided that the plaintiff would receive a one-time payment of $125,000 in exchange for the plaintiff’s agreement to dismiss the amended complaint, with prejudice, against JJF and JJE, along with a full release of claims and covenant not to sue.” (page 23)
Starks v. Jimmy John’s LLC, Jimmy John’s Franchise, LLC, et al.
settledThird-party plaintiff · filed 2013-02-14 · Superior Court of the State of California, County of Los Angeles · BC501113
“Starks v. Jimmy John’s LLC, Jimmy John’s Franchise, LLC, et al. (Superior Court of the State of California, County of Los Angeles, Case No. BC501113).”Page 22 of the 2025 FDD, Item 3
Outcome:“to make a minimum total donation of $100,000 to certain food banks, to pay the named plaintiff $5,000, and to pay $370,000 in attorneys’ fees. All of those payments have been made, and the case was dismissed on June 26, 2015.”
Parent, affiliates and predecessor
Pending (1)
Dominick Polizzi, et al. v. Jimmy John’s LLC
pendingThird-party plaintiff · Jimmy John’s, LLC ('JJ') · filed 2023-06-13 · United States District Court for the Central District of Illinois (removed from the Circuit Court of Champaign County, Illinois) · 2:23-cv-02168-CSB-EIL
“Dominick Polizzi, et al. v. Jimmy John’s LLC (United States District Court for the Central District of Illinois, Case No. 2:23-cv-02168-CSB-EIL, filed June 13, 2023). Plaintiffs filed a putative class action in the Circuit Court of Champaign County, Illinois against Jimmy John’s, LLC (“JJ”) alleging violations of the Illinois Biometric Information Privacy Act.”Page 26 of the 2025 FDD, Item 3
Outcome:“JJ denies all liability in this matter and intends to defend itself vigorously.”
Concluded (3)
New York v. Dunkin’ Brands, Inc.
concludedGovernment or regulatory action · Dunkin’ Brands, Inc. (DBI) · filed 2019-09-26 · N.Y. Supreme Court for New York County · 451787/2019
“New York v. Dunkin’ Brands, Inc. (N.Y. Supreme Court for New York County, Case No. 451787/2019, filed September 26, 2019).”Page 27 of the 2025 FDD, Item 3
Outcome:“On September 21, 2020, without admitting or denying the NYAG’s allegations, DBI and the NYAG entered into a consent agreement to resolve the State’s complaint. Under the consent order, DBI agreed to pay $650,000 in penalties and costs,”
The People of the State of California v. Arby’s Restaurant Group, Inc.
settledGovernment or regulatory action · Arby’s Restaurant Group, Inc. (ARG) · filed 2019-03-19 · California Superior Court, Los Angeles County · 19STCV09397
“The People of the State of California v. Arby’s Restaurant Group, Inc. (California Superior Court, Los Angeles County, Case No. 19STCV09397, filed March 19, 2019).”Page 26 of the 2025 FDD, Item 3
Outcome:“Under the settlement agreement, ARG paid no money but agreed (a) to remove the disputed provision from its franchise agreements (which it had already done);” (page 27)
The People of the State of California v. Dunkin’ Brands, Inc.
settledGovernment or regulatory action · Dunkin’ Brands, Inc. (DBI) · filed 2019-03-19 · California Superior Court, Los Angeles County · 19STCV09597
“The People of the State of California v. Dunkin’ Brands, Inc., (California Superior Court, Los Angeles County, Case No. 19STCV09597, filed on March 19, 2019.)”Page 27 of the 2025 FDD, Item 3
Outcome:“Under the terms of the settlement, DBI agreed not to enforce either version of the no-poaching provision or assist Dunkin’s franchisees in enforcing that provision.”
Item 3 lists the litigation the franchisor must disclose; a matter against a parent, an affiliate or a named officer is not a matter against the franchisor, and pending claims are allegations, not findings.
What are you signing up for?
Ongoing fees run about 10.5% of sales (royalty + ad fund), before rent and labor.
Source: FDD 2025 · Items 11, 12, 17
FDD Items 12, 15, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 10 years |
|---|---|
| Renewal term | 10 years |
| Allowed renewalsℹ | 1 |
| Territory type | No territory protection |
| Protected territory | No |
| Exclusive territoryℹ | No |
| 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 | 3 mi |
| Right of first refusalℹ | Yes |
| Transfer requires consent | Yes |
| Termination notice | 30 days |
| Termination groundsℹ | 2 |
| Curable defaultsℹ | 4 |
| Mandatory arbitration | No |
| Arbitration location | N/A - litigation only in Georgia courts |
| Jury trial waiver | No |
| Governing law | GA |
| Litigation count | 14 |
View Item 3 litigation summary
11 disclosed cases involving JJF and related entities including class actions (alfalfa sprouts, data breach, overtime/FLSA, non-compete agreements, cookie labeling), franchisee arbitrations (CWL Investments transfer dispute, C&C Resources non-renewal), and biometric privacy suit. Most cases settled. One pending (C&C Resources liability phase; Dominick Polizzi biometric case). Three additional affiliate disclosure cases (Arby's and Dunkin' no-poaching provisions, Dunkin' data breach) included in Item 3.
Items 10, 11
Training & Operations
- Classroom training
- 6 hrs
- On-the-job training
- 117 hrs
- Training location
- Training facility in Champaign, Illinois or Atlanta, Georgia, or an operating Jimmy John's Restaurant
- Ongoing training
- Required
- Time to open
- 9 mo
- From signing to launch
- Site selection
- Franchisee selects site; franchisor must approve within ~30 days.
- Franchisor financing
- Not offered
- Item 10
- POS system
- Signature Systems, Inc.
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: Signature Systems, Inc.
Item 20 · call current owners
Franchisee Contacts
2,801 owners to call
Name · phone · city · state. Extracted from FDD Item 20
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.
Who owns Jimmy John's?
Jimmy John's is franchised by Jimmy John's Franchisor SPV, LLC. Its parent company is Inspire Brands, Inc.. Source: FDD Item 1, 2025 filing.
What is Item 19 in the Jimmy John's 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 Jimmy John's FDD and qualifies whose outlets they describe.
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 verdict score of 71 out of 100 (higher is better). The grade is a deterministic score built from six weighted dimensions — financial health, unit economics, unit growth, scale, legal, and transparency — then calibrated against SBA loan charge-off rates and FDD age. Transparency is one of the six, so a filing that discloses less scores lower on that dimension than one that discloses more. 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.