The Jimmy John's franchise requires a total investment of $366K – $728K with a 6.0% royalty fee and operates 2,647 units in the QSR category. This report analyzes the full Franchise Disclosure Document including unit economics, fee structure, growth trends, and risk indicators to help you evaluate the cost of investing in Jimmy John's.
Composite quality score based on growth, stability, efficiency, fees, transparency, and system size.
Estimated initial investment range as disclosed in the most recent FDD.
| Line Item | Low Estimate | High Estimate |
|---|---|---|
| Franchise Fee | $35,000 | $35,000 |
| Real Estate | $2,500 | $8,000 |
| Real Estate | $2,500 | $8,000 |
| Buildout | $115,000 | $310,000 |
| Equipment | $120,000 | $215,000 |
| Other | $9,500 | $22,000 |
| Equipment | $2,200 | $2,200 |
| Other | $1,000 | $2,000 |
| Inventory | $6,000 | $6,000 |
| Other | $3,000 | $5,000 |
| Training | $6,000 | $15,000 |
| Insurance | $11,500 | $15,000 |
| Other | $2,000 | $10,000 |
| Working Capital | $50,000 | $75,000 |
| Total | $366,200 | $728,200 |
Ongoing fees as disclosed in the FDD.
| Fee Type | Rate | Type | Basis | Frequency |
|---|---|---|---|---|
| Royalty | 6.0% | PCT | Gross Sales | weekly |
| Advertising and Development Fund | 4.5% | PCT | Gross Sales | weekly |
| Cooperative Advertising Programs | 2.0% | PCT | Gross Sales | monthly |
| Successor Franchise | $10,000 | FIXED | Per renewal | one_time |
| Site design fee and kitchen layout design fee | $1,200 | VARIABLE | Per request | one_time |
| 1-week or 3-Week Certified Management Training Program for New, Additional, or Repeat Trainees | $1,500 | VARIABLE | Per trainee | one_time |
| New Training and Additional Guidance or Support | $400 | VARIABLE | Per person per day | one_time |
| District Manager Training | $2,000 | VARIABLE | Per training | one_time |
| Controlling Ownership Interest Transfer | $12,500 | VARIABLE | Per transfer | one_time |
| Non-Controlling Ownership Interest Transfer | $1,000 | FIXED | Per transfer | one_time |
| Product and Service Purchases | N/A | VARIABLE | Per purchase | monthly |
| Testing | N/A | VARIABLE | Per test | one_time |
| Relocation | $2,500 | FIXED | Per relocation | one_time |
| Computer Systems, Maintenance, and Support | N/A | VARIABLE | Per service | monthly |
| Franchisee Convention | $500 | VARIABLE | Per convention | annually |
| Regional Advisory Council | N/A | VARIABLE | Council assessments | monthly |
| Audit | N/A | VARIABLE | Per audit | one_time |
| Interest | 1.5% | PCT | Monthly on overdue amounts | monthly |
| Non-Approved Restaurant Opening | $2,500 | FIXED | Per day | one_time |
| Non-Compliance | $250 | VARIABLE | Per deviation | one_time |
| Unauthorized Advertising Fee | $1,000 | FIXED | Per occurrence | one_time |
| Late Fee | 10.0% | PCT | Of original amount due but not paid on time | one_time |
| Confidential Operations Manual | $500 | FIXED | Per replacement copy | one_time |
| Management Fee | $600 | FIXED | Per person per day plus costs and expenses | one_time |
| Costs and Attorneys' Fees | N/A | VARIABLE | Per circumstance | one_time |
| Indemnification | N/A | VARIABLE | Per third-party claim | one_time |
| Maintenance Cost Reimbursement | $600 | FIXED | Per day plus costs and expenses | one_time |
| Customer Complaint Reimbursement | N/A | VARIABLE | Out-of-pocket cost | one_time |
| Insurance Reimbursement | N/A | VARIABLE | Out-of-pocket cost | one_time |
| Tax Reimbursement | N/A | VARIABLE | Out-of-pocket cost | one_time |
| De-identification Reimbursement | N/A | VARIABLE | Out-of-pocket cost | one_time |
Financial performance data as disclosed in FDD Item 19.
| Metric | Value | Unit | Cohort | Period |
|---|---|---|---|---|
| Average Unit Volume | $1,455,501 | USD | 1st Quartile | FY2024 |
| Average Unit Volume | $1,058,718 | USD | 2nd Quartile | FY2024 |
| Average Unit Volume | $834,012 | USD | 3rd Quartile | FY2024 |
| Average Unit Volume | $596,390 | USD | 4th Quartile | FY2024 |
| Average Unit Volume | $986,095 | USD | All Restaurants | FY2024 |
| Median Unit Volume | $1,366,055 | USD | 1st Quartile | FY2024 |
| Median Unit Volume | $1,053,373 | USD | 2nd Quartile | FY2024 |
| Median Unit Volume | $833,617 | USD | 3rd Quartile | FY2024 |
| Median Unit Volume | $620,024 | USD | 4th Quartile | FY2024 |
| Median Unit Volume | $935,022 | USD | All Restaurants | FY2024 |
| Average Unit Volume | $985,107 | USD | Traditional Locations | FY2024 |
| Average Unit Volume | $1,098,717 | USD | Non-Traditional Locations | FY2024 |
| Average Unit Volume | $1,082,680 | USD | Drive-Thru (Traditional Locations) | FY2024 |
| Average Unit Volume | $926,973 | USD | No Drive-Thru (Traditional Locations) | FY2024 |
| Median Unit Volume | $935,075 | USD | Traditional Locations | FY2024 |
| Median Unit Volume | $887,476 | USD | Non-Traditional Locations | FY2024 |
| Median Unit Volume | $1,052,647 | USD | Drive-Thru (Traditional Locations) | FY2024 |
| Median Unit Volume | $871,854 | USD | No Drive-Thru (Traditional Locations) | FY2024 |
Estimated using industry benchmarks for the QSR category. Actual costs vary significantly by location, operator, and market.
| Line Item | Amount | % of Revenue |
|---|---|---|
| Gross Revenue | $1,053,373 | 100% |
| COGS | $-316,012 | 30% |
| Labor | $-294,944 | 28% |
| Occupancy | $-105,337 | 10% |
| Marketing | $-42,135 | 4% |
| Other Costs | $-84,270 | 8% |
| Royalty Fee (franchisor) | $-63,202 | 6.0% |
| Ad Fund Fee (franchisor) | $-21,067 | 2.0% |
| Owner's Profit | $126,405 | 12.0% |
Model your personal financial scenario by adjusting the assumptions below.
Automated risk indicators based on FDD data analysis.
Franchise unit trajectory based on FDD Item 20 data.
| Year | Start | Opened | Closed | Transferred | End | Closure Rate | Net Growth |
|---|---|---|---|---|---|---|---|
| 2022 | 2616 | +67 | -67 | 238 | 2597 | 2.6% | -19 |
| 2023 | 2597 | +58 | -40 | 205 | 2604 | 1.5% | +7 |
| 2024 | 2604 | +88 | -29 | 170 | 2647 | 1.1% | +43 |
How Jimmy John's compares to peer brands in the QSR category.
Ratio = Investment midpoint ÷ median annual revenue. Lower is better. A 0.5x ratio means the initial investment equals half of one year's gross revenue. Does not account for operating costs, margins, or time value of money.
| Brand | Total Units | Investment Range | Median Revenue | Royalty | Inv/Rev Ratio |
|---|---|---|---|---|---|
| Subway | 19502 | $3K – $630K | No Item 19 | -- | -- |
| McDonald's | 12772 | $1.47M – $2.64M | No Item 19 | 5.0% | -- |
| Dunkin' | 8499 | $527K – $1.83M | $1.43M | -- | 0.8x |
| Domino's Pizza | 7043 | -- | $24K | 5.5% | -- |
| Burger King | 6701 | -- | No Item 19 | -- | -- |
| Wendy's | 5552 | $393K – $2.99M | $2.23M | 4.0% | 0.8x |
| Little Caesars | 3705 | $446K – $1.82M | No Item 19 | 6.0% | -- |
| KFC | 3558 | $135K – $3.77M | $1.27M | 5.0% | 1.5x |
| Papa John's | 3291 | $261K – $853K | No Item 19 | 5.0% | -- |
| Popeyes Louisiana Kitchen | 3177 | $505K – $3.92M | No Item 19 | 5.0% | -- |
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