Jimmy John's Franchise

Jimmy John's, a Inspire Brands franchise, has been franchising since 1993 - 10 years after the concept was founded in 1983 , currently with 2,700 total locations in the food & beverage sector, headquartered in IL. According to the 2024 FDD, the total initial investment ranges from $330K to $641K - a 94% spread between the low and high end that reflects how site size, market, and buildout scope change the capital requirement. This figure includes the franchise fee of $35K, equipment, leasehold improvements, and initial working capital through the ramp-up period.

Ongoing royalties run 6.0% of gross sales with an additional 4.5% national advertising fund contribution, bringing the combined ongoing cost to 10.5% of every dollar in sales. Critically, Jimmy John's does disclose financial performance data in Item 19, a voluntary disclosure that only about a third of U.S. franchisors make. The reported average gross revenue per location is $1.1M, meaning the typical unit pays roughly $66K per year in royalty alone. Revenue is not profit, actual franchisee take-home depends on rent, labor, cost of goods, and local demand.

Network momentum is currently negative: Jimmy John's contracted by 0.7% year-over-year with 100 closures on the record. Contraction warrants careful investigation, it can reflect market saturation, unit-level unprofitability, franchisee disputes, or a deliberate pruning of underperforming locations. Call Item 20 contacts and ask specifically about closure reasons. Before committing capital, triangulate this summary against the full FDD, a franchise attorney's review, and direct conversations with five or more current and former franchisees from Item 20.