Bottom line
- Total investment $366K – $728K including a $35K franchise fee, 6.0% ongoing royalty.
- Average unit revenue of $986K/year (median $935K).
- Rated STRONG with a risk score of 49/100. SBA loan default rate of 0.0% across 1175 loans (below the industry average).
- 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
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 Jimmy John's unit return on the cash you put in?
Unlevered ROIC · per unit
19%
Below typical band (30–60%)
Levered LBO scenario · Yale Crease Capital framing
What would 25 Jimmy John's units return on equity?
Equity IRR · 5-yr
49.9%
7.57× MOIC
Year-1 DSCR
1.88×
EBITDA ÷ debt service
Equity required
$887K
on $4.4M purchase
Total debt
$3.5M
SBA $2.2M + senior + seller note
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.
Item 7 · what it costs
The Vitals
Item 19
Financial Performance
Item 20 · unit dynamics
The Growth Chart
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 7 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
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.
Score breakdown · what drove the 49 / 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
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
79 numbers
One-time purchase · CSV download · Validation questions included
FDD download
Jimmy John's · FDD (2025) PDF