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Why Is It That Jimmy John's Franchisees Are So Successful?

If you're unfamiliar with Jimmy John's it is a restaurant franchise that features gourmet deli sandwiches, fresh baked breads and ancillary other food and beverage products.

To own a Jimmy John's Restaurant, your looking at a total investment of $330,500 to $519,500, depending on the size and location and includes initial real estate lease costs and a franchise fee of $30,000 to $35,000. In actuality, candidates will need $80,000 in either cash, marketable securities, stocks, etc. None of the funds can be borrowed. Further, you'll need a net worth of $300,000 to qualify.

You should know that Jimmy John's has certain "other fees" that might be important to aspiring franchise owners.

Royalty Fees are 6% of the Restaurant's weekly Gross Sales. They're due on Wednesday of each week. Gross Sales, basically means all revenue from operating the Restaurant.

There's also a Advertising and Development Fund that charges up to 4.5% of your Restaurant's weekly Gross Sales and Cooperative Advertising Programs that can be as high as 2% of Gross Sales.

So, the given here is that owning a JIMMY JOHN'S Restaurant is not cheap and the ongoing fees will give you pause. So, Why Is It That JIMMY JOHN'S franchisees are so successful?


LET'S TALK ABOUT THE NUMBERS

  • Average Annual Gross Sales: $1,327,276*
  • Average Net Profit From Operations in Dollars: $247,256*
  • Average Food & Paper Costs: 25.68%*
This does not mean that every JIMMY JOHN'S Restaurant averages $1M+ in Gross Sales. Sales volumes vary widely throughout the system. Important consideration for all stores is traffic count, accessibility and visibility of the site, the community and competition and more. Of course, top performing Restaurants have franchisees with high level management skills, experience, business acumen, and the ability to build business relationships to help promote JIMMY JOHN'S in local markets.



GROWTH & TURNOVER OF FRANCHISE UNITS

JIMMY JOHN'S continues to grow at a fairly rapid pace. In 2011, they had 1,303 franchised units, 1,534 in 2012, and 1,774 in 2013.Today, JIMMY JOHN'S has approximately 2,109 U.S. Units.

Facts & Figures:

  • Global Sales: $1,756,713,820
  • Total Units: 2,109
  • Percent Franchised: 98%
  • Sales Growth %: 19.80%
  • Unit Growth %: 17.00%
  • US Company Owned Units: 38
  • US Franchised Units: 2,071
  • % Company Owned: 2%
  • % International Units: 0%
  • Sales Growth: 290
  • Unit Growth: 307

FAILURE RATE:

Terminations, Non-Renewals, Reacquired by Franchisor and Ceased Operations are all "failure terms" to me. In the last 6 years less than 1% of JIMMY JOHN'S Restaurants fell into the above stated categories. That is pretty amazing.

True success in this business comes with multi-unit ownership. Today, most JIMMY JOHN'S franchisees are area developers. Start with a single unit and build your own JIMMY JOHN'S empire.


The 3 KEY COMPONENTS TO THE JIMMY JOHN'S BRAND:

1. Keep it Simple. From inventory, to menus to marketing to managment. It's all about making gourmet sandwiches.Don't muddy the waters with anything complex.

2. We know we make gourmet sandwiches that people want. Our food is in high demand by all age groups. We deliver a really good sandwich every time. Our customers who comeback time and time again know that. They trust JIMMY JOHN'S to deliver. We wouldn't want it any other way.

3. We make it happen. We started JIMMY JOHN'S from a garage and turned it into a recognizable franchise brand with more than 2,000 franchised units. We have a passion for our business, for our food and for our customers. Our goal from day one, was to make the world's greatest gourmet sandwiches. We'll continue to do that.

The numbers and franchisee performance speak for themselves with this franchise. If I'm interested in buying a Restaurant Franchise, I can assure you, I would be interested in owning a JIMMY JOHN'S franchise.

To learn more about owning a JIMMY JOHN'S Restaurant CLICK HERE.



*Figures reflect averages for twenty-one (21) affiliate-owned restaurants that opened before January 1, 2011, as published in Item 19 of our April 2016 Franchise Disclosure Document. These averages are based on a 52-week annual period from December 31, 2014 through December 29, 2015. Of these twenty-one (21) restaurants, 10 (48%) had higher gross sales, 12 (57%) had higher food and paper costs, and 9 (43%) had higher net profit percentage during the reported period. The financial performance representation contained in Item 19 of our April 2016 Franchise Disclosure Document also includes (1) average and median system–wide gross sales, average and median franchise gross sales, and the number and percentage of restaurants exceeding the averages during the referenced period, (2) average and median gross sales, average and median food and paper cost, and average and median net profit percentage information during the referenced period for fourteen (14) affiliate-owned restaurants that were opened after January 1, 2011 and before January 1, 2015, and (3) other average and median performance information for affiliate-owned restaurants.

A new franchisee’s results may differ from the represented performance. There is no assurance that you will do as well and you must accept that risk. This offering is made by prospectus only.

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