How Much Does Jimmy John’s Franchise Cost

Franchising a business is one simple way to earn money, especially if you are franchising an already famous business. You will just have to qualify with their specific requirements, pay their franchising fee, and follow the rules. Jimmy John’s might be the best option for you. Jimmy John’s is a popular sandwich restaurant chain, that specializes delivery. There is more than 1,000 franchised Jimmy John’s shop today. So if you are really interested in franchising one, the first thing you should know is how much does Jimmy John’s franchise Cost?

Average Jimmy John’s Franchise Startup Fee

There will be a lot of factors that can affect the total startup cost whenever you franchise a business. For Jimmy John’s, the average startup costs run around $325,000 up to $555,000. Here are the major factors that contributed to the total Jimmy John’s franchise cost:

How Much Does Jimmy John's Franchise Cost

  • Franchising Fee – This is the first and foremost cost you will have to make. The initial Jimmy John’s Franchise startup fee is $35,000. If you want to franchise another unit, you will have to pay another $30,000. However, you should have a good standing before you can franchise another unit. Keep in mind that you will need to have $80,000 in cash and around $300,000 net worth before you can franchise one.
  • Rent – This will be the next factor to consider. On the average, a typical Jimmy John’s shop could take up around 1,200 up to 1,800 square feet. And this restaurant can be placed in shopping centers, malls, and venues located in commercial areas. A 1-month rent can cost you around $2,500 up to $8,000.
  • Security Deposit – Security deposit can cost you around $2,500 up to $8,000 and you will have to pay this to the landlord in the area where you rented.
  • Leasehold Improvements – This might be one of the biggest factors that can add up your total Jimmy John’s franchise startup fee. You will have to spend around $100,000 up to $200,000 for this one. The price includes any physical renovation to be made to your rented establishment. And the price depends on the condition of the establishment, its size and location, the previous use of the site, and any other construction.
  • Equipment, Materials, and Fixtures – This is also another big factor that you will need to consider. This factor should include your needed equipment for production such as refrigerators, ovens, freezers and equipment needed for the operation of your business such as P.O.S system, computer, telephones, signage, and sometimes a security system.
  • Architect – You will need to hire a professional architect to design the building for you, usually the cost runs around $5,000 up to $10,000.
  • Office Equipment – You will need to buy equipment for your offices such as a desk, a chair, and a safe for your money. Total cost for office equipment runs around $2,500.
  • Utility Deposits – You can’t start your operation without the required utilities such as gas, electricity, and telephone service. And sometimes it may require you to pay a deposit. Expect to spend at least $1,000 up to $2,000.
  • Initial Inventory and Supplies – You will need to purchase your initial startup inventory and supplies such as food, beverages, paper products, supplies for cleaning, and much more. The cost runs around $6,000.
  • Opening Event – This factor can be avoided since Jimmy John’s does not require you this. If you really insist on having a grand promotional event, Jimmy John’s recommends scheduling this event 90 up to 120 days after your restaurant opens. Expect to spend around $3,000 up to $5,000 for this one. The price includes advertising and promotional items such as newspapers, radio, and television.
  • Training – Jimmy John’s will provide a training for at least 3 weeks. This is included in the franchise fee. However, the training will be held at their headquarters, which is in Illinois. You will have to spend out-of-pocket costs for the food and lodging that will be needed for 3 weeks. The cost runs around $6,000 up to $15,000 for 3 people.
  • Insurance – Every business requires permits and insurances before it can operate. And there are a lot of certain types of insurance that you will need to obtain whenever you have a food-related business. Expect to spend around $7,500 up to $12,500 for a premium 1-year insurance.
  • Extra Costs – You should at least prepare around $2,000 up to $10,000 for the additional expenses you are going to make. This includes an attorney and accountant.
  • 3-months fund – Because you will still not earn a lot during the first 3 months. You will need to cover all the initial expenses that will be made during that period of time. Expect to spend around $50,000 up to $70,000.

Why Choose Jimmy John’s?

Aside from it is a popular sandwich restaurant chain, it is a restaurant that is commonly known for having a fast, yet world-class service. Jimmy John’s also makes things simple by having a limited, yet focused, inventory. And on the average, Jimmy John’s annual sales runs more than $1,300,000.

How to Franchise?

Now that you have an idea on how much does Jimmy John’s franchise cost, the next thing you should know is how to buy the franchise. Well, here is the process:

Average Jimmy John’s Franchise Startup Fee

  • The first and foremost thing you should do is to hire a franchise attorney. This attorney will help you with the legal documents that are associated with franchising.
  • The next step is to choose the right franchise. For this, you have chosen Jimmy John’s, which is actually a good choice. Also, make sure that you qualify with their requirements. As for Jimmy John’s, you should have at least $80,000 worth of money in cash and $300,000 net worth.
  • Evaluating the franchise is another step you will have to make. If you choose another franchise aside from Jimmy John’s, make sure that you know it’s background. You can see the complaints of the consumers on a certain franchisor by doing a search on a website called Better Business Bureau.

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