Jimmy John's franchise
The franchisee owns and operates a Jimmy John's restaurant selling sandwiches, fresh-baked breads and other approved food and beverage items, with carry-out, delivery and on-premises dining; delivery service is mandatory.
Owner-operator required Disclosed
- Source
- 2026 Franchise Disclosure Document — Jimmy John's Franchisor SPV, LLC
- Document
- FDD 2026, issued 2026-03-26
- Item
- Item 15 — Item 15
- Page
- PDF p. 83
- Obtained
- Wisconsin Department of Financial Institutions — Franchise Registration Search, file 640451
The franchisee must have an 'Operations Partner' who manages the restaurant on-site day to day and who must own, fully vested from the start, at least 5% of the franchisee entity; the franchisor must accept that person. That person must also complete the full training and apprenticeship programs and, unless the franchisee is a Sophisticated Franchisee, may not hold an interest in or work for any other restaurant or food business. A 'Sophisticated Franchisee' — an entity that with its affiliates owns and operates at least 5 limited-service restaurants under any brand — may instead use a franchisor-approved general manager, so a large multi-brand operator can run the restaurant through a non-owner manager. This is recorded as owner-operator required because that is the standard case for a new single-unit buyer, but the majority owner need not personally be the Operations Partner.
What stands out
- Estimated initial investment of $366,200 to $733,500 for a traditional restaurant excluding real estate purchase, with a $35,000 initial franchise fee; a non-traditional location runs $206,200 to $686,000 with a $17,500 fee.
- Ongoing fees total roughly 11% of gross sales before cooperative charges: 6% royalty, up to 4.5% advertising and development fund (currently charged in full), and at least 0.5% local advertising, plus up to 2% for cooperatives.
- Item 19 reports average annual gross sales of $1,007,437 and a median of $955,639 across 2,581 franchised restaurants open the full 2025 fiscal year — sales only, unaudited, with no cost or profit data.
7 more observations
- The distribution is wide: quartile averages run from $1,490,247 to $608,313, and the lowest reported restaurant recorded $159,965. Drive-thru restaurants averaged about $164,000 more than those without.
- Franchised outlets grew from 2,597 to 2,737 over 2023–2025, with openings rising from 58 to 123 a year and departures falling from 53 to 33; 87 new franchised restaurants are projected for the next year and 75 agreements are signed but not open.
- No exclusive or non-exclusive territory is granted, and the assigned delivery area can be changed or reduced at any time.
- Item 15 requires an on-site Operations Partner who holds at least 5% of the franchisee entity; only a Sophisticated Franchisee operating five or more limited-service restaurants may substitute an approved general manager.
- There is no arbitration clause; disputes are litigated in Georgia under Georgia law, a risk the FDD's own Special Risks page highlights.
- No pending litigation, but eleven concluded Jimmy John's matters are disclosed, including three franchisee-initiated disputes and a 2025 Maryland Securities Commissioner consent order carrying a $30,000 penalty.
- The franchisor and its affiliates received $65.6 million from third-party suppliers on account of franchisee purchases in fiscal 2025, while making no direct sales to franchisees.
Things to verify
- Item 19 excludes restaurants that opened during 2025 and the 33 that closed, and the reported group averages 14 years open. Ask what first- and second-year restaurants actually did.
- Nothing in the FDD shows food, labour, rent or occupancy costs. Build an independent P&L from franchisee interviews before relying on the $1,007,437 average.
- Confirm whether the site under discussion will have a drive-thru; the FDD's own data show a material sales gap, and Item 7 says the investment table already assumes drive-thru construction costs.
6 more questions
- With no territory of any kind, ask in writing how close another Jimmy John's may be opened and what the franchisor's development plan is for the surrounding market.
- Check whether the royalty and advertising-fund incentives apply: they require signing by March 31, 2027 in designated Standard or Strategic Markets and exclude renewals, non-traditional sites, relocations and transfers.
- Verify what liquid capital and net worth the franchisor will actually require of an applicant; the reviewed document states no minimum.
- Model the liquidated-damages exposure of up to 36 months of average royalties, and the cost of the required remodel at renewal or on a resale.
- Ask about the 124 transfers recorded in 2025 and the 33 franchised restaurants that closed — who sold, at what price, and why.
- Confirm current technology and software charges directly; Item 6 lists the fee category but states no amount and reserves the right to charge weekly or monthly software fees.
Category cost placeholders, not a forecast. Owner operation is required; a manager-pay deduction does not make this an absentee model. This snapshot uses the default inputs; the calculator below updates when you edit them.
Evidence confidence: High. This describes source support, not investment quality. AI-extracted and machine-verified where stated; no human line-by-line review. Source and review record.
Read the full research overview
A Jimmy John's franchisee builds and runs a sandwich restaurant of roughly 1,000 to 1,800 square feet, selling sandwiches, fresh-baked bread and related items for carry-out, delivery and dine-in. Delivery is required, not optional. The franchisor is Jimmy John's Franchisor SPV, LLC of Atlanta, a securitization entity that has offered franchises since July 2017 and whose predecessor franchised the system from 1993; Inspire Brands is an indirect parent. At the 2025 fiscal year end there were 2,777 U.S. restaurants, 2,737 of them franchised, plus 37 internationally.
A traditional new build is estimated at $366,200 to $733,500 excluding any purchase of real estate, including a $35,000 initial franchise fee and three months of working capital of $50,000 to $75,000; a non-traditional site runs $206,200 to $686,000 with a $17,500 fee. Ongoing costs are a 6% royalty on weekly gross sales, an advertising and development fund contribution of up to 4.5% currently charged in full, at least 0.5% on local advertising, and up to 2% for advertising cooperatives. No minimum liquidity or net worth requirement is disclosed in the reviewed source.
Item 19 is substantial. For the 2,581 franchised restaurants open the full 2025 fiscal year, about 94% of the franchised base, average annual gross sales were $1,007,437 and the median $955,639, with quartile averages from $1,490,247 down to $608,313 and a reported range of $159,965 to $3,046,579. Traditional restaurants with a drive-thru averaged $1,107,798 against $943,539 without one. No costs, margins or profit figures are given, the data are unaudited, and restaurants that opened or closed during 2025 are excluded, so nothing here shows how a new restaurant performs in its early years.
The system grew in each of the three reported years, and openings accelerated from 58 to 88 to 123 while franchised departures fell from 53 to 43 to 33, a net gain of 140 franchised outlets over the period. Transfers were heavy but declining at 205, 170 and 124. On risk: there is no pending litigation, but Item 3 lists eleven concluded Jimmy John's matters including three franchisee-brought disputes, one of which produced a $3.5 million arbitration award, and a 2025 Maryland consent order with a $30,000 penalty over disclosure omissions. The franchise grants no territory of any kind, disputes go to court in Georgia rather than arbitration, owners must personally guarantee the agreement, and termination can trigger liquidated damages of up to 36 months of average royalties.
View ratings and their supporting evidence
Transparent ratings
How these are computedEach dimension is scored 1–5 from published formulas. Missing data yields “Not enough evidence to rate”, never a low score. There is no composite score by design.
How the system has performed, computed from the disclosed Items 7, 19 and 20. Figures a documented material source inconsistency puts in doubt are excluded, and the dimension shows “Not rated”.
Inputs
- Franchised outlets 2597 → 2737 (Item 20, Table 3)
- Thresholds: ≥15% → 5; 5–15% → 4; 0–5% → 3; −5–0% → 2; below −5% → 1
Inputs
- Attrition = (terminations + non-renewals + reacquisitions + ceased-other) ÷ start-of-year franchised units, averaged over 3 fiscal years
- Thresholds: <2% → 5; 2–4% → 4; 4–6% → 3; 6–10% → 2; >10% → 1
Inputs
- AUV $1,007,437 (disclosed) ÷ midpoint investment $549,850 = 1.83×
- Thresholds: ≥2.0 → 5; 1.5–2.0 → 4; 1.0–1.5 → 3; 0.7–1.0 → 2; <0.7 → 1
How much this brand’s FDD discloses, and how well-supported our data on it is. This measures transparency, not business performance — a strong business that discloses little scores low here and stays unrated above.
Inputs
- Item 19 present (+1)
- Average plus median or a distribution (+1)
- Population 94% of franchised units, clearly described (+1)
- Franchisor Track Record
- Franchising 33 years (since 1993) · 2,777 outlets · Item 3: 14 matter(s) disclosed · Item 4: none disclosed
- Multi-Unit Scalability
- Multi-unit development rights are available through a Development Agreement covering a minimum of 3 restaurants in a defined area on an agreed schedule, with… · Owner-operator required
- Operational Intensity
- Owner-operator required
Initial investment
FDD Items 5 and 7Format shown: Traditional Location — new build on leased premises; the table reflects the cost of developing a drive-thru location and excludes any purchase of real estate.
$366,200–$733,500 total initial investment. Excludes real estate purchase. Includes 3 months of additional funds.
View full investment breakdown — Items 5 & 7
| Initial franchise fee (the named Item 5 fee only) | $35,000 Disclosed
Standard fee for a new Standard Traditional Restaurant. Lower fees apply only to non-standard cases: a previously-operated-and-closed location ($12,500, or $5,000 for an existing franchisee) and Non-Traditional Locations ($17,500 or prorated); a $0-$35,000 FY2025 actual range reflects those non-standard/discounted cases, not the standard low end. |
|---|---|
| Total initial investment — low | $366,200 Disclosed
|
| Total initial investment — high | $733,500 Disclosed
|
| Midpoint of range | $549,850 Derived
|
| Real estate purchase included? | No — assumes a leased site |
| Additional funds assumed | 3 months |
| Required liquid capital | Not disclosed in the reviewed source Not disclosedNot disclosed in the reviewed source. We did not find this value in 2026 Franchise Disclosure Document — Jimmy John's Franchisor SPV, LLC; we do not fill gaps with estimates or third-party figures. No minimum liquid-capital requirement appears on the cover pages or in Items 1, 5, 7 or 11 of the reviewed document. |
| Required net worth | Not disclosed in the reviewed source Not disclosedNot disclosed in the reviewed source. We did not find this value in 2026 Franchise Disclosure Document — Jimmy John's Franchisor SPV, LLC; we do not fill gaps with estimates or third-party figures. No minimum net-worth requirement for franchisees is stated in the reviewed document. The only net-worth reference is a Michigan escrow notice about the franchisor's own financial statements. |
Figures are for a new Traditional Location on leased premises and exclude the cost of buying real estate or constructing a building. The franchisor states the table reflects the cost of a drive-thru location, which it describes as more expensive than a non-drive-thru site. Working capital covers three months. The franchisor does not offer direct or indirect financing. Both column totals foot exactly to the line items shown. A buyer acquiring an existing restaurant from the franchisor's affiliate or from another franchisee would negotiate a purchase price instead of most of these costs, plus required upgrades.
Item 7 line items (14)
| Expenditure | Low | High |
|---|---|---|
| Initial franchise fee — Lump sum at signing. | $35,000 | $35,000 |
| Real estate / rent (1 month) | $2,500 | $8,000 |
| Security deposit — Assumes a deposit equal to one month's rent. | $2,500 | $8,000 |
| Leasehold improvements — The low figure assumes the landlord bears many of these costs. | $115,000 | $310,000 |
| Furniture, fixtures, signage and equipment (incl. computer/POS) | $120,000 | $215,000 |
| Architect / design services — Payable to an architect or a franchisor affiliate. | $9,500 | $22,000 |
| Office equipment | $2,200 | $2,500 |
| Utility deposits | $1,000 | $2,000 |
| Opening inventory and supplies | $6,000 | $6,000 |
| Grand opening event — Not required; this is a recommended spend if the franchisee holds an event. | $3,000 | $5,000 |
| Training expenses (out-of-pocket, up to 3 people) — Travel and living costs; the training itself is provided for 2 people at no charge. | $6,000 | $15,000 |
| Insurance — Estimated premiums for one year. | $11,500 | $20,000 |
| Miscellaneous expenses | $2,000 | $10,000 |
| Additional funds — 3 months — Includes payroll but not owner's draw or salary; not a break-even estimate. | $50,000 | $75,000 |
Source for every row: the Item 7 estimated-initial-investment table of 2026 Franchise Disclosure Document — Jimmy John's Franchisor SPV, LLC (table begins PDF p. 49) — rows inherit the table's citation rather than carrying fifteen identical ones.
Other formats disclosed in Item 7 (1)
| Format | Low | High | Fee |
|---|---|---|---|
| Non-Traditional Location (food court, campus, airport and similar sites) | $206,200 | $686,000 | $17,500 |
Ongoing fees
FDD Item 6Royalty
6% of gross sales Disclosed
- Source
- 2026 Franchise Disclosure Document — Jimmy John's Franchisor SPV, LLC
- Document
- FDD 2026, issued 2026-03-26
- Item
- Item 6 — Other Fees table — Royalty
- Page
- PDF p. 35
- Obtained
- Wisconsin Department of Financial Institutions — Franchise Registration Search, file 640451
6% of weekly Gross Sales, debited weekly on Wednesday for the week ending the prior Tuesday. The franchisor reserves the right to negotiate a higher or lower royalty for certain Non-Traditional Locations. Several time-limited incentive programs give royalty credits rather than a lower rate: a $125,000 credit in designated Standard Markets, a $175,000 credit in Strategic Markets, a $10,000-per-restaurant VetFran credit up to $100,000, a $50,000 Pioneer credit per restaurant in six named states, and a 0% royalty for up to 6 months for opening early. These require agreements signed on or before March 31, 2027 and compliance with stated conditions.
Brand advertising fund
4.5% of gross sales Disclosed
- Source
- 2026 Franchise Disclosure Document — Jimmy John's Franchisor SPV, LLC
- Document
- FDD 2026, issued 2026-03-26
- Item
- Item 6 — Other Fees table — Advertising and Development Fund
- Page
- PDF p. 35
- Obtained
- Wisconsin Department of Financial Institutions — Franchise Registration Search, file 640451
Up to 4.5% of weekly Gross Sales, currently charged at the full 4.5%; 2.25% for Non-Traditional Locations. Incentive-program participants pay a stepped effective rate of 2% through year 1, 3% in year 2, 4% in year 3 and 5% from year 4 for the rest of the term. Non-Traditional franchisees may pay a lower contribution or none, depending on circumstances.
Local marketing
0.5% of gross sales Disclosed
- Source
- 2026 Franchise Disclosure Document — Jimmy John's Franchisor SPV, LLC
- Document
- FDD 2026, issued 2026-03-26
- Item
- Item 11 — Your Local Advertising Obligations
- Page
- PDF p. 64
- Obtained
- Wisconsin Department of Financial Institutions — Franchise Registration Search, file 640451
At least 0.5% of weekly Gross Sales on local advertising, beginning 120 days after opening, in addition to Fund and cooperative contributions. Monthly accounting with receipts may be required, and the franchisor may decide which expenditures count. Item 6 note 5 repeats the same 0.5% requirement.
Core requirements shown separately; caps, credits and conditions may overlap. Check the full schedule for technology, cooperative, transfer and other charges.
View all recurring fees and conditions
| Royalty | 6% of gross sales Disclosed
6% of weekly Gross Sales, debited weekly on Wednesday for the week ending the prior Tuesday. The franchisor reserves the right to negotiate a higher or lower royalty for certain Non-Traditional Locations. Several time-limited incentive programs give royalty credits rather than a lower rate: a $125,000 credit in designated Standard Markets, a $175,000 credit in Strategic Markets, a $10,000-per-restaurant VetFran credit up to $100,000, a $50,000 Pioneer credit per restaurant in six named states, and a 0% royalty for up to 6 months for opening early. These require agreements signed on or before March 31, 2027 and compliance with stated conditions. 6% of weekly Gross Sales, debited weekly on Wednesday for the week ending the prior Tuesday. The franchisor reserves the right to negotiate a higher or lower royalty for certain Non-Traditional Locations. Several time-limited incentive programs give royalty credits rather than a lower rate: a $125,000 credit in designated Standard Markets, a $175,000 credit in Strategic Markets, a $10,000-per-restaurant VetFran credit up to $100,000, a $50,000 Pioneer credit per restaurant in six named states, and a 0% royalty for up to 6 months for opening early. These require agreements signed on or before March 31, 2027 and compliance with stated conditions. |
|---|---|
| Advertising / brand fund | 4.5% of gross sales Disclosed
Up to 4.5% of weekly Gross Sales, currently charged at the full 4.5%; 2.25% for Non-Traditional Locations. Incentive-program participants pay a stepped effective rate of 2% through year 1, 3% in year 2, 4% in year 3 and 5% from year 4 for the rest of the term. Non-Traditional franchisees may pay a lower contribution or none, depending on circumstances. Up to 4.5% of weekly Gross Sales, currently charged at the full 4.5%; 2.25% for Non-Traditional Locations. Incentive-program participants pay a stepped effective rate of 2% through year 1, 3% in year 2, 4% in year 3 and 5% from year 4 for the rest of the term. Non-Traditional franchisees may pay a lower contribution or none, depending on circumstances. |
| Required local marketing | 0.5% of gross sales Disclosed
At least 0.5% of weekly Gross Sales on local advertising, beginning 120 days after opening, in addition to Fund and cooperative contributions. Monthly accounting with receipts may be required, and the franchisor may decide which expenditures count. Item 6 note 5 repeats the same 0.5% requirement. At least 0.5% of weekly Gross Sales on local advertising, beginning 120 days after opening, in addition to Fund and cooperative contributions. Monthly accounting with receipts may be required, and the franchisor may decide which expenditures count. Item 6 note 5 repeats the same 0.5% requirement. |
| Technology / software | $250–$500/month Disclosed
No recurring technology fee amount is stated. Item 6 lists a 'Computer Systems, Maintenance, and Support' fee at cost of service but says the franchisor and its affiliates do not currently provide these services and may charge for them if they do. Item 11 says the franchisor or its affiliates may charge up-front and ongoing weekly or monthly fees for proprietary software or technology licensed to franchisees. Item 8 requires participation in an affiliate-contracted learning management system and use of a specified online ordering system, without stating amounts. No recurring technology fee amount is stated. Item 6 lists a 'Computer Systems, Maintenance, and Support' fee at cost of service but says the franchisor and its affiliates do not currently provide these services and may charge for them if they do. Item 11 says the franchisor or its affiliates may charge up-front and ongoing weekly or monthly fees for proprietary software or technology licensed to franchisees. Item 8 requires participation in an affiliate-contracted learning management system and use of a specified online ordering system, without stating amounts. |
| Advertising cooperative | 2% of gross sales Disclosed
No current cooperative rate is disclosed, so the value is null. Item 6 discloses only a ceiling of up to 2% of Gross Sales, recorded here as range_high, payable as the cooperative program directs. Cooperative programs include restaurants in the market area operated by the franchisor or its affiliates. No current cooperative rate is disclosed, so the value is null. Item 6 discloses only a ceiling of up to 2% of Gross Sales, recorded here as range_high, payable as the cooperative program directs. Cooperative programs include restaurants in the market area operated by the franchisor or its affiliates. |
| Transfer fee | $2,500–$12,500 one-time Disclosed
Tiered: $12,500 where the transferee is not an existing Jimmy John's franchisee, $7,500 where the transferee is an existing franchisee that has operated a restaurant for a full year, $2,500 for a transfer to an immediate family member, and no charge for transferring the agreement to an entity the franchisee controls. A non-controlling interest transfer costs $1,000. Half is non-refundable when approval is requested. The franchisor may waive or reduce the fee for distressed transfers. Tiered: $12,500 where the transferee is not an existing Jimmy John's franchisee, $7,500 where the transferee is an existing franchisee that has operated a restaurant for a full year, $2,500 for a transfer to an immediate family member, and no charge for transferring the agreement to an entity the franchisee controls. A non-controlling interest transfer costs $1,000. Half is non-refundable when approval is requested. The franchisor may waive or reduce the fee for distressed transfers. |
| Renewal fee | $10,000 one-time Disclosed
Successor franchise fee due when a franchisee acquires a successor franchise after the initial term expires. Renewal also requires remodelling to then-current standards regardless of cost. Successor franchise fee due when a franchisee acquires a successor franchise after the initial term expires. Renewal also requires remodelling to then-current standards regardless of cost. |
| Royalty + ad fund (% of sales) | 10.5% Derived
|
Fee schedule (36 fees; 15 verified against the source, 21 single-pass)
Every recurring, conditional and one-time fee found in this FDD's Item 6 table (plus mandatory recurring costs disclosed in Items 7/11), each cited to its page and carrying its verification status: verified means two independent readings agreed or a tie-break re-inspection of the page decided it; single-pass means one reading captured it and it has not been independently confirmed (permitted only for fees that cannot move modeled economics — see the materiality rule). Amounts marked “not stated” are charged at then-current rates the FDD does not quantify and are never modeled as $0.
| Fee | Amount | Frequency | Mandatory | Verification | Cite | Notes |
|---|---|---|---|---|---|---|
| Royalty | 6% of gross sales | weekly | Yes | verified (2-pass) | Item 6, p. 35 | Franchisor may negotiate a different rate for certain Non-Traditional Locations; multiple time-limited incentive programs (Standard/Strategic/Early Opening/VetFran/Pioneer/Drive-Thru Remodel/Relocation/Multi-Brand) give royalty credits or temporary reduced effective rates. |
| Advertising and Development Fund | 4.5% of gross sales | weekly | Yes | verified (tie-break) | Item 6, p. 35 | Currently charged at the full 4.5% (2.25% for Non-Traditional Locations; note 1 allows some Non-Traditional franchisees a lower or no Fund contribution). Incentive programs temporarily reduce the rate: Standard 2% through Year 1, 3% Years 2-3, then 4.5%; Strategic 1% through Year 1, 2% Years 2-3, then 4.5%; Retrofit Multi-Brand and New Multi-Brand 2% Year 1, 3% Year 2, 4% Year 3, then 5% for the remainder of the term. Pass B's shape is correct: the 4.5% is a cap currently charged in full, so it belongs in `maximum`, not in `range_high`. Pass A's range_high of 4.5 merely duplicated `value`. Pass B's Multi-Brand 5% claim is verified against the Item 6 note 3 rate tables. |
| Cooperative Advertising Programs | Not stated | varies | No | verified (2-pass) | Item 6, p. 35 | Applies only where the franchisor establishes a regional Cooperative Program (DMA) and membership is then automatic; franchisor currently does not require a separate contribution. 182 DMAs currently identified system-wide. |
| Local Advertising Obligation | 0.5% of gross sales | weekly | Yes | verified (2-pass) | Item 11, p. 64 | Begins 120 days after opening; in addition to Fund and Cooperative contributions; monthly expense reporting with receipts may be required. Also stated in Item 6 note (5). |
| Successor Franchise Fee | $10,000 | one time | Yes | single-pass | Item 6, p. 35 | Payable when acquiring a successor franchise after the initial 10-year term expires. [Listed by one verification pass only (A); not independently confirmed.] |
| Site Design Fee and Kitchen Layout Design Fee | Not stated | one time | No | single-pass | Item 6, p. 36 | Only if franchisee requests affiliate design services; PSL only offered for drive-thru Restaurants. [Listed by one verification pass only (A); not independently confirmed.] |
| 1-week or 4-Week Certified Management Training Program for New, Additional, or Repeat Trainees | $1,000–$4,000 | per event | No | verified (tie-break) | Item 6, p. 36 | Initial training is provided for 2 people at no additional cost; the fee applies to initial training of more than 2 people, to training newly-hired managers, and to re-training people in the 1-week or 4-week program. Item 5 covers the first 2 people at no additional cost; this is the post-opening/recurring training charge. |
| New Training and Additional Guidance or Support | $400–$600 | per event | No | verified (tie-break) | Item 6, p. 36 | Charged when new training programs or additional guidance or support are needed or requested (excluding aspects relating to labor relations and employment practices). Confirmed verbatim on PDF page 36. |
| District Manager Training | $2,000 | per event | No | verified (tie-break) | Item 6, p. 36 | Item 11 (p.66) requires a District Manager once the franchisee and its affiliates own a third Restaurant, a second District Manager at 6 Restaurants, and further District Managers so that none is responsible for more than 5 Restaurants; each must complete District Manager training. Item 11's District Manager Training section (p.66) confirms the 3rd-Restaurant trigger and the 1-per-5-Restaurants ratio. |
| Controlling Ownership Interest Transfer Fee | Tiered (base $12,500) | one time | Yes | single-pass | Item 6, p. 36 | Half due (non-refundable) on transfer-approval request; balance due before transfer completes. [Listed by one verification pass only (A); not independently confirmed.] |
| Non-Controlling Ownership Interest Transfer Fee | $1,000 | one time | Yes | single-pass | Item 6, p. 37 | Due before the proposed effective date of a non-controlling ownership transfer. [Listed by one verification pass only (A); not independently confirmed.] |
| Product and Service Purchases | Not stated | varies | Yes | verified (2-pass) | Item 6, p. 37 | Required purchases of Trade Secret Food Products, Branded Products, Permitted Brands and other designated items/services from the franchisor, affiliates, or approved suppliers. |
| Testing | Not stated | varies | No | single-pass | Item 6, p. 37 | Only when franchisee proposes a new product or supplier for testing/inspection. [Listed by one verification pass only (A); not independently confirmed.] |
| Relocation Fee | $2,500 | one time | No | single-pass | Item 6, p. 37 | Due if franchisee relocates the Restaurant's premises with franchisor approval. [Listed by one verification pass only (A); not independently confirmed.] |
| Computer Systems, Maintenance, and Support | Not stated | varies | No | verified (2-pass) | Item 6, p. 37 | Franchisor and affiliates do not currently provide these services but may charge for them if they begin to. |
| Franchisee Convention | $500 | annual | Yes | verified (tie-break) | Item 6, p. 37 | Item 11 (p.61) provides that at the franchisor's request, in its sole discretion, the franchisee agrees to attend an annual meeting of all franchisees at a designated location, for no more than 4 days per calendar year, at the franchisee's cost. Confirmed verbatim on PDF page 37. Calculator audit 2026-09-03: value was null with only range_high/maximum.amount set to 500, but the engine's requires_assumption path for a fixed-basis fee (src/lib/economics.ts) seeds its assumption line strictly from `value` (or `minimum`), never from `range_high` or `maximum`. With value null this mandatory fee was silently dropped into the excluded/undisclosed list instead of appearing as the editable $500/yr assumption line the model_note already says it should be ('Assume up to $500 per year'). Setting value to the disclosed $500 ceiling (the only figure the FDD gives) makes the modeled behavior match the documented intent. (p. 37; "Up to $500 — When billed — You may be charged this fee to attend each franchisee") |
| Regional Advisory Council Assessment | Not stated | varies | Yes | single-pass | Item 6, p. 37 | Applies once franchisor forms a Council for a franchisee's region (formed once more than one franchisee operates there). [Listed by one verification pass only (A); not independently confirmed.] |
| Audit | Not stated | varies | No | single-pass | Item 6, p. 38 | Triggered by failure to timely submit required reports, or understating Royalty/Fund contributions by more than 3%. [Listed by one verification pass only (A); not independently confirmed.] |
| Interest on Overdue Amounts | 1.5% of other | monthly | No | single-pass | Item 6, p. 38 | Applies only to amounts more than 7 days overdue. [Listed by one verification pass only (A); not independently confirmed.] |
| Non-Approved Restaurant Opening Fee | $2,500 | per event | No | single-pass | Item 6, p. 38 | Due if franchisee opens before receiving franchisor approval. [Listed by one verification pass only (A); not independently confirmed.] |
| Non-Compliance Fee | Tiered (base 250%) | per event | No | single-pass | Item 6, p. 38 | Discretionary, for deviations from operational requirements/Brand Standards. [Listed by one verification pass only (A); not independently confirmed.] |
| Unauthorized Advertising Fee | $1,000 | per event | No | verified (tie-break) | Item 6, p. 38 | Due only if the franchisee uses advertising or marketing materials the franchisor has not approved. Confirmed verbatim on PDF page 38. |
| Late Fee | 10% of other | per event | No | single-pass | Item 6, p. 38 | Due for each late payment. [Listed by one verification pass only (A); not independently confirmed.] |
| Confidential Operations Manual Replacement Fee | $500 | one time | No | single-pass | Item 6, p. 38 | Charge for a replacement copy of the Confidential Operations Manual. [Listed by one verification pass only (A); not independently confirmed.] |
| Management Fee (Franchisor-Managed Restaurant) | $600 | per event | No | single-pass | Item 6, p. 38 | Unless franchisee is a Sophisticated Franchisee; payable if franchisor/affiliate/third party must manage the Restaurant after the Operations Partner's death/disability or after default/abandonment. [Listed by one verification pass only (A); not independently confirmed.] |
| Costs and Attorneys' Fees | Not stated | varies | No | single-pass | Item 6, p. 39 | Due when franchisee does not comply with the Franchise Agreement. [Listed by one verification pass only (A); not independently confirmed.] |
| Indemnification | Not stated | varies | No | single-pass | Item 6, p. 39 | Reimbursement if franchisor/affiliates are held liable for claims from the Restaurant's operation. [Listed by one verification pass only (A); not independently confirmed.] |
| Liquidated Damages (Termination) | Not stated | one time | No | single-pass | Item 6, p. 39 | Applies if franchisor terminates with cause or franchisee terminates without cause; due within 15 days of termination. [Listed by one verification pass only (A); not independently confirmed.] See footnote 8. |
| Maintenance Cost Reimbursement | $600 | per event | No | single-pass | Item 6, p. 39 | Only if franchisor/designee must correct a sub-standard Restaurant condition franchisee failed to fix. [Listed by one verification pass only (A); not independently confirmed.] |
| Customer Complaint Reimbursement | Not stated | varies | No | single-pass | Item 6, p. 39 | Only if franchisor/designee resolves a customer complaint franchisee failed to resolve. [Listed by one verification pass only (A); not independently confirmed.] |
| Insurance Reimbursement | Not stated | varies | No | verified (tie-break) | Item 6, p. 39 | Due only if the franchisor or its designee obtains insurance for the franchisee because the franchisee failed to obtain or maintain required coverage (itself a Franchise Agreement default). Confirmed verbatim on PDF page 39. |
| Tax Reimbursement | Not stated | varies | No | single-pass | Item 6, p. 39 | Reimbursement for taxes franchisor pays on account of franchisee's operation or payments. [Listed by one verification pass only (A); not independently confirmed.] |
| De-identification Reimbursement | Not stated | one time | No | single-pass | Item 6, p. 39 | Only if franchisor/designee must de-brand the Restaurant after the franchise ends because franchisee fails to do so. [Listed by one verification pass only (A); not independently confirmed.] |
| Point-of-sale system monthly maintenance and support (Signature Systems) | $250–$500 | monthly | Yes | verified (tie-break) | Item 11, p. 67 | The franchisee must obtain the currently approved point-of-sale system provided by and proprietary to Signature Systems, Inc.; the system itself costs approximately $25,000 to $55,000. Not listed in the Item 6 table, whose "Computer Systems, Maintenance, and Support" row covers only services the franchisor itself might provide in the future. Disclosed in Item 11. |
| Online ordering system monthly fee (Olo) | $85 | monthly | Yes | verified (tie-break) | Item 11, p. 67 | The franchisee must have an approved online ordering system; the only approved system is provided by Mobo System, Inc. d/b/a Olo. Not listed in the Item 6 table; disclosed only in Item 11. |
| Customer loyalty program monthly fees | $100 | monthly | Yes | verified (tie-break) | Item 11, p. 68 | The franchisee must purchase the equipment and pay the required monthly fees in order to participate in the approved JIMMY JOHN'S customer loyalty program. Not listed in the Item 6 table; disclosed only in Item 11. |
Royalty and Fund contributions are collected weekly by automatic debit from a designated account. Other charges disclosed in Item 6 include a $2,500 relocation fee plus costs, site and kitchen design fees of $750 to $1,200, training charges of $1,000 per additional trainee (up to $5,000 for a repeat or expelled trainee) and $2,000 for District Manager training, $400 to $600 per person per day for additional training or support (up to $1,000), $2,500 per day for opening without approval, $1,000 per unauthorized advertising occurrence, $500 for a replacement operations manual, $600 per day management and maintenance reimbursements, audit costs where royalties are understated by more than 3%, and liquidated damages on certain terminations.
Financial performance (Item 19)
What the franchisor actually disclosedWho is represented: Franchised U.S. Jimmy John's restaurants that operated for the full 2025 fiscal year — 2,581 of the 2,737 franchised U.S. restaurants open at year end, about 94% of the franchised base. The franchisor excluded 123 restaurants that first opened during 2025, 12 that were closed and reported no sales for extended periods (remodel, rebuild, storm or fire damage, relocation or planned transfer), 38 at Multi-Brand Locations (17 of which also opened during 2025), the 33 franchised restaurants that closed during 2025, and all company-owned restaurants. Of the 2,581 restaurants, 2,556 were at traditional locations and 25 at Non-Traditional Locations; 972 had drive-thru windows and 1,584 did not. The group had been open an average of 14 years.
Qualifications: The figures are gross sales only. The franchisor states plainly that they do not reflect cost of sales, operating expenses or any other costs that must be deducted to reach net income. The data are unaudited, drawn from franchisee sales reports and point-of-sale data, and no accountant has reviewed them. The reported group excludes restaurants that opened during 2025, restaurants closed for extended periods, Multi-Brand Locations, the 33 franchised restaurants that closed during 2025, and all company-owned restaurants — so it is a survivor group of established units averaging 14 years open, and a first-year restaurant is not represented. Gross Sales as defined includes delivery and catering charges and imputed sales from business interruption insurance, and is net of documented refunds, discounts and loyalty redemptions. The spread is wide: the lowest reported restaurant recorded $159,965 and the highest $3,046,579, and 52% of the group fell below the average.
View full Item 19 disclosure and tables
Jimmy John's makes a financial performance representation covering annual gross sales, which it calls Annual Unit Volume, for the 2,581 franchised U.S. restaurants that operated for the whole of fiscal 2025 — roughly 94% of its franchised base. The average was $1,007,437 and the median $955,639, with 48.0% of restaurants at or above the average. The disclosure also breaks the group into quartiles, from a top-quartile average of $1,490,247 down to a bottom-quartile average of $608,313, and by format, showing traditional drive-thru restaurants averaging $1,107,798 against $943,539 for traditional restaurants without a drive-thru. What it does not show is any cost, margin or profit figure, and the franchisor says so directly. It also does not show how a new restaurant performs: units that opened during 2025 and units that closed during 2025 are both excluded, and the reported group has been open an average of 14 years.
| Metric | Subset | Value | Units | Period | Cite |
|---|---|---|---|---|---|
| Annual gross sales (AUV) — all reported franchised restaurants 48% of units met or exceeded 1,241 of 2,581 restaurants were at or above the average. | All 2025 Franchised Restaurants Average | $1,007,437 | 2,581 | FY2025 | FDD p.89 |
| Annual gross sales (AUV) — all reported franchised restaurants | All 2025 Franchised Restaurants Median | $955,639 | 2,581 | FY2025 | FDD p.89 |
| Annual gross sales (AUV) — highest single restaurant | All 2025 Franchised Restaurants High | $3,046,579 | 2,581 | FY2025 | FDD p.89 |
| Annual gross sales (AUV) — lowest single restaurant | All 2025 Franchised Restaurants Low | $159,965 | 2,581 | FY2025 | FDD p.89 |
| Annual gross sales (AUV) — top quartile by AUV Quartile range $1,212,927 to $3,046,579. | 1st quartile Quartile avg. | $1,490,247 | 645 | FY2025 | FDD p.89 |
| Annual gross sales (AUV) — top quartile by AUV | 1st quartile Quartile median | $1,411,318 | 645 | FY2025 | FDD p.89 |
| Annual gross sales (AUV) — second quartile by AUV Quartile range $955,810 to $1,212,584. | 2nd quartile Quartile avg. | $1,081,405 | 645 | FY2025 | FDD p.89 |
| Annual gross sales (AUV) — second quartile by AUV | 2nd quartile Quartile median | $1,076,504 | 645 | FY2025 | FDD p.89 |
| Annual gross sales (AUV) — third quartile by AUV Quartile range $744,686 to $955,646. | 3rd quartile Quartile avg. | $850,650 | 645 | FY2025 | FDD p.89 |
| Annual gross sales (AUV) — third quartile by AUV | 3rd quartile Quartile median | $848,939 | 645 | FY2025 | FDD p.89 |
| Annual gross sales (AUV) — bottom quartile by AUV Quartile range $159,965 to $744,645. | 4th quartile Quartile avg. | $608,313 | 646 | FY2025 | FDD p.89 |
| Annual gross sales (AUV) — bottom quartile by AUV | 4th quartile Quartile median | $632,334 | 646 | FY2025 | FDD p.89 |
| Annual gross sales (AUV) — traditional locations with a drive-thru 47% of units met or exceeded 457 of 972 were at or above this average; range $256,319 to $3,046,579. | Traditional / drive-thru Average | $1,107,798 | 972 | FY2025 | FDD p.89 |
| Annual gross sales (AUV) — traditional locations with a drive-thru | Traditional / drive-thru Median | $1,073,927 | 972 | FY2025 | FDD p.89 |
| Annual gross sales (AUV) — traditional locations without a drive-thru 43.7% of units met or exceeded 692 of 1,584 were at or above this average; range $159,965 to $2,368,548. | Traditional / no drive-thru Average | $943,539 | 1,584 | FY2025 | FDD p.89 |
| Annual gross sales (AUV) — traditional locations without a drive-thru | Traditional / no drive-thru Median | $893,888 | 1,584 | FY2025 | FDD p.89 |
| Annual gross sales (AUV) — Non-Traditional Locations 44% of units met or exceeded Only 25 restaurants; 11 were at or above this average; range $161,135 to $2,904,609. A very small sample. | Non-Traditional Average | $1,085,163 | 25 | FY2025 | FDD p.89 |
| Annual gross sales (AUV) — Non-Traditional Locations | Non-Traditional Median | $1,014,872 | 25 | FY2025 | FDD p.89 |
System health (Item 20)
Outlets, openings, exits and transfers by fiscal year · U.S. onlyView detailed Item 20 tables and source notes
| Fiscal year | Start | Opened | Terminated | Not renewed | Reacquired | Ceased — other | End | Transfers | Company-owned (end) |
|---|---|---|---|---|---|---|---|---|---|
| 2023 | 2,597 | 58 | 1 | 12 | 0 | 40 | 2,602 | 205 | 40 |
| 2024 | 2,602 | 88 | 1 | 13 | 0 | 29 | 2,647 | 170 | 42 |
| 2025 | 2,647 | 123 | 0 | 13 | 0 | 20 | 2,737 | 124 | 40 |
Disclosed 2026 Franchise Disclosure Document — Jimmy John's Franchisor SPV, LLC, Item 20, Tables 1–3 (PDF p. 91). All counts are United States outlets; Item 1 separately reports 37 restaurants operating internationally, which are outside these tables. The franchised base grew every year in the period, and growth accelerated: 58 openings in 2023, 88 in 2024 and 123 in 2025, against 53, 43 and 33 franchised outlets leaving the system respectively. Closures are recorded almost entirely as 'ceased operations — other' and non-renewals rather than terminations; only one termination is recorded in 2023, one in 2024 and none in 2025, and no outlets were reacquired by the franchisor in any year. Transfers between franchisees were heavy but declining: 205, 170 and 124 over the three years, the 2025 figure equalling about 4.5% of the franchised base. Two company-owned restaurants closed in 2025. One inconsistency: Table No. 1 shows 2,604 franchised outlets at the end of 2023 (and as the 2024 starting count) while Table No. 3 shows 2,602 for the same points, a two-outlet difference; Table No. 4 likewise starts 2023 with 41 company-owned outlets and ends with 42 while Table No. 1 shows 40 at both ends of 2023. The 2024 and 2025 year-end figures agree across tables and match Item 1.
Source data notes (11) — inconsistencies found in the FDD itself during verification
Our verification re-reads every table. Where the FDD's own printed tables disagree, we document the discrepancy rather than silently "fixing" it. Classes: B = arithmetic error in the source's derived column; C = the printed tables genuinely disagree; D = a legitimate definitional difference (e.g., transfers netted, explained by a footnote); E = unresolved ambiguity. Figures a material C/E issue puts in doubt are excluded from our derived metrics, scores and rankings.
- [C/minor] Table 1 vs Table 3 2023: Franchised outlets at end of FY2023: Table 1 (p.91) prints 'Franchised 2023 2597 2604 7'; Table 3 Totals (p.97) prints 'Totals 2023 2597 58 1 12 0 40 2602'. The two printed tables disagree by 2 units. This is the validator warning 'item20 2023: Table 1 franchised_end 2604 != Table 3 end 2602'. — Use 2,602. Table 3's Totals row foots on its own activity columns (2,597 + 58 - 1 - 12 - 0 - 40 = 2,602) and is corroborated forward: 2,602 is also Table 3's FY2024 start, and 2,602 + 88 - 1 - 13 - 29 = 2,647, the FY2024 end-of-year figure both tables agree on. Table 1's 2,604 is supported by nothing but its own net-change column. Neither pass mis-read the page; the source documents genuinely disagree.
- [C/minor] Table 1 vs Table 3 2024: Carry-forward of the same 2-unit gap: Table 1 (p.91) uses 2,604 as the FY2024 franchised start and reports net change +43; Table 3 (p.97) uses 2,602 and its activity columns imply net change +45. Both tables converge on 2,647 at FY2024 end and agree throughout FY2025 (2,647 -> 2,737). — Use Table 3's 2,602 start and +45 net change for FY2024. The discrepancy is confined to the FY2023 end / FY2024 start figure; the direction of growth is positive on either reading, and 2 units is 0.08% of the 2,597 start-of-year franchised base, far below the 0.5% (about 13 units) materiality threshold.
- [C/minor] Table 1 vs Table 4 2023: Company-owned outlets in FY2023: Table 1 (p.91) prints '2023 40 40 0'; Table 4 Totals (p.97) prints '2023 41 1 0 0 0 42', i.e. 41 at start, one opening (Georgia, 1 -> 2), 42 at end. The 2-unit end-of-year gap runs in the opposite direction from the franchised gap above. — Use Table 4's 41 -> 42. Table 4's state rows foot to its printed totals (Georgia 1->2, Illinois 9, Indiana 5, Michigan 19, Wisconsin 7 = 41 start / 42 end) and Table 4 records the single Georgia opening that produces the change; Table 1's flat 40 -> 40 records no such transaction. Combined with the franchised gap, Table 1 appears simply to bucket 2 outlets as franchised that Tables 3/4 treat as company-owned, so the FY2023 end-of-year combined total is unaffected (2,604 + 40 = 2,602 + 42 = 2,644).
- [C/minor] Table 1 vs Table 4 2024: Table 1 (p.91) shows company-owned 40 -> 42 in FY2024 (net +2); Table 4 (p.97) shows 42 -> 42 with no openings, closures, reacquisitions or sales in FY2024. Table 1's +2 is unattributable to any transaction anywhere in Item 20: Table 3 records 0 outlets 'Reacquired by Franchisor' and Table 4 records 0 'Outlets Reacquired From Franchisee' in all three years. — Use Table 4's 42 -> 42. The phantom +2 is an artifact of Table 1's erroneous FY2023 company-owned figures: because Table 1 ends FY2023 at 40 instead of 42, it has to absorb the 2-unit correction in FY2024. Both tables agree again for FY2025 (42 -> 40, 2 closures), and Item 1 corroborates the FY2025 end: 38 single-branded plus 2 multi-branded company-owned = 40.
- [C/minor] Table 1 vs Tables 3+4 2023: Total outlets at start of FY2023: Table 1 prints 2,637 (2,597 franchised + 40 company-owned), but Tables 3 and 4 sum to 2,638 (2,597 + 41). The end-of-year combined totals do reconcile (2,644 either way), so the 1-unit gap exists only at the start of FY2023. — Prefer 2,638 for the FY2023 opening total, following Table 4's state-row-corroborated 41 company-owned. Table 1's 'Total Outlets' rows are internally consistent with its own franchised and company-owned rows in all three years (2,637/2,644, 2,644/2,689, 2,689/2,777), so its error is self-consistent and propagates into its totals; only the FY2023 opening total is affected, and 1 unit is 0.04% of the franchised base. The FY2025 closing total of 2,777 is corroborated by Item 1 (2,777 U.S. Restaurants as of December 28, 2025).
- [D/minor] Table 3 vs Table 4: Table 3 records 0 outlets 'Reacquired by Franchisor' and Table 4 records 0 'Outlets Reacquired From Franchisee' and 0 'Outlets Sold to Franchisee' in every year 2023-2025. The two tables are mutually consistent. — No error. Franchisor-franchisee ownership transfers genuinely did not occur in the period, which is why Table 1's FY2024 company-owned +2 (see above) has no supporting transaction. Franchisee-to-franchisee transfers are counted separately in Table 2 and do not overlap.
- [D/minor] Table 3: Table 3's 'Non-Renewals' column carries 12/13/13 units per year against only 1/1/0 terminations, and 'Ceased Operations - Other Reasons' carries 40/29/20, giving total franchised closures of 53/43/33 for 2023/2024/2025. — Legitimate column-definition difference, not an error. The franchisor evidently records most exits as non-renewals or other cessations rather than terminations. The classification is corroborated: the FY2025 total of 33 closures (0 + 13 + 20) matches Item 19's statement that 33 franchised Jimmy John's Restaurants closed in 2025. Attrition metrics should sum terminations, non-renewals and other cessations rather than reading terminations alone.
- [D/minor] Table 2: Table 2 TOTAL rows foot exactly to the state rows in all three years (205, 170, 124); transfers fell about 40% over the period. — No discrepancy. Table 2 counts transfers from franchisees to new owners other than the franchisor, a definitionally separate population from the zero franchisor reacquisitions in Table 3, so the two do not overlap and must not be added together.
- [D/minor] Table 5 2026: Table 5 TOTAL rows foot exactly (75 franchise agreements signed but restaurants not open, 87 projected new franchised restaurants, 3 projected new company-owned). Projected FY2026 franchised openings of 87 sit well below the 123 franchised outlets actually opened in FY2025. — No discrepancy. Table 5 is a forward-looking projection with a different basis from Table 3's historical openings, so the gap is a definitional difference rather than an inconsistency. It should not be used to restate FY2025 openings.
- [D/minor] All Item 20 tables: Every Item 20 table is a U.S.-only state table. Item 1 separately discloses 37 Jimmy John's restaurants operating internationally as of December 28, 2025, which appear nowhere in Item 20. Fiscal years are 52/53-week retail years (FY2023 ended December 31 2023; FY2024 ended December 29 2024; FY2025 December 30 2024 - December 28 2025), so the years abut with no gap. — No error; a scope definition. Item 20 unit counts are U.S.-only and reconcile to Item 1's U.S. figure of 2,777 Restaurants at FY2025 end, not to a worldwide count. Any systemwide unit figure shown alongside Item 20 data must state that it excludes the 37 international restaurants.
- [D/minor] All Item 20 tables 2025: A JIMMY JOHN'S Restaurant at a Multi-Brand Location counts as one outlet in the Item 20 tables. Item 1 reports 38 franchised and 2 company-owned Multi-Brand outlets at FY2025 end. — No error; a counting definition, and it reconciles. Item 1's 2,699 single-branded plus 38 multi-branded franchised = 2,737, matching Table 1 and Table 3 at FY2025 end, and 38 + 2 company-owned = 40, matching Table 1 and Table 4. This corroborates the FY2025 totals the site uses.
Company-owned outlets (Table 4)
| Year | Start | Opened | Reacquired from franchisee | Closed | Sold to franchisee | End |
|---|---|---|---|---|---|---|
| 2023 | 41 | 1 | 0 | 0 | 0 | 42 |
| 2024 | 42 | 0 | 0 | 0 | 0 | 42 |
| 2025 | 42 | 0 | 0 | 2 | 0 | 40 |
Read: How to read Item 20.
Ownership and operations
Items 11, 12, 15, 17Owner-operator required Disclosed
- Source
- 2026 Franchise Disclosure Document — Jimmy John's Franchisor SPV, LLC
- Document
- FDD 2026, issued 2026-03-26
- Item
- Item 15 — Item 15
- Page
- PDF p. 83
- Obtained
- Wisconsin Department of Financial Institutions — Franchise Registration Search, file 640451
The franchisee must have an 'Operations Partner' who manages the restaurant on-site day to day and who must own, fully vested from the start, at least 5% of the franchisee entity; the franchisor must accept that person. That person must also complete the full training and apprenticeship programs and, unless the franchisee is a Sophisticated Franchisee, may not hold an interest in or work for any other restaurant or food business. A 'Sophisticated Franchisee' — an entity that with its affiliates owns and operates at least 5 limited-service restaurants under any brand — may instead use a franchisor-approved general manager, so a large multi-brand operator can run the restaurant through a non-owner manager. This is recorded as owner-operator required because that is the standard case for a new single-unit buyer, but the majority owner need not personally be the Operations Partner.
View operating requirements, territory and contract term
| Owner involvement (Item 15) | Owner-operator required Disclosed
The franchisee must have an 'Operations Partner' who manages the restaurant on-site day to day and who must own, fully vested from the start, at least 5% of the franchisee entity; the franchisor must accept that person. That person must also complete the full training and apprenticeship programs and, unless the franchisee is a Sophisticated Franchisee, may not hold an interest in or work for any other restaurant or food business. A 'Sophisticated Franchisee' — an entity that with its affiliates owns and operates at least 5 limited-service restaurants under any brand — may instead use a franchisor-approved general manager, so a large multi-brand operator can run the restaurant through a non-owner manager. This is recorded as owner-operator required because that is the standard case for a new single-unit buyer, but the majority owner need not personally be the Operations Partner. The franchisee must have an 'Operations Partner' who manages the restaurant on-site day to day and who must own, fully vested from the start, at least 5% of the franchisee entity; the franchisor must accept that person. That person must also complete the full training and apprenticeship programs and, unless the franchisee is a Sophisticated Franchisee, may not hold an interest in or work for any other restaurant or food business. A 'Sophisticated Franchisee' — an entity that with its affiliates owns and operates at least 5 limited-service restaurants under any brand — may instead use a franchisor-approved general manager, so a large multi-brand operator can run the restaurant through a non-owner manager. This is recorded as owner-operator required because that is the standard case for a new single-unit buyer, but the majority owner need not personally be the Operations Partner. |
|---|---|
| Initial training | A four-week new franchise training program totalling 25 to 45 hours of classroom instruction and 95 to 135 hours of on-the-job training, held at a training facility the franchisor designates and/or at an operating Jimmy John's restaurant, scheduled 10 to 12 weeks before the planned opening and completed before opening. The Operations Partner (or the general manager for a Sophisticated Franchisee) and any on-site managers designated for certification must attend and complete it, along with an apprenticeship program where applicable. Training is provided at no cost for two people; additional trainees currently cost $1,000 per week, and a separate District Manager training program currently costs $2,000. A franchisor representative attends the opening for 24 hours for a first restaurant, 16 hours for a second and 8 hours thereafter. Existing franchisees have a shorter one-week certification program (6 classroom hours, 34 to 37 on-the-job hours). Disclosed
Item 11 text at one point describes three weeks of training at a designated facility and elsewhere requires completion of a four-week initial program; the detailed table is headed 'Four Week New Franchise Training Program'. Everyone attending must hold a state health certificate, and training is conducted in English. |
| Multi-unit / development options | Multi-unit development rights are available through a Development Agreement covering a minimum of 3 restaurants in a defined area on an agreed schedule, with a development fee of $10,000 per restaurant payable at signing and credited toward each restaurant's initial franchise fee. Development rights are not assignable and the Development Agreement cannot be renewed or extended; the franchisor may terminate it if the schedule is missed. Franchisees sign the then-current form of franchise agreement for each restaurant, which may differ from the form in this disclosure document. Multi-Brand Locations combining a Jimmy John's with an Arby's, Buffalo Wild Wings, BWW GO, Dunkin', Baskin-Robbins or Sonic are also offered to qualified prospects, with separate fees and training under each other franchisor's agreement. Disclosed
Franchisees have no options or rights of first refusal to acquire additional franchises (Item 12). |
| Territory (Item 12) | No territory protection of any kind. The franchisee operates at one approved site and receives neither an exclusive nor a non-exclusive territory. The franchisor and its affiliates reserve the right to open or license Jimmy John's restaurants at any other location, to operate other brands and distribution channels including the internet, and otherwise to compete, without any obligation to the franchisee. A delivery area is assigned after the site is found, but it is expressly not exclusive, has no stated minimum or maximum size, and the franchisor may reduce or change it at any time for any reason with no liability for lost sales. Relocation requires franchisor approval and may carry a relocation fee, a general release and a new franchise term. If no site is secured within 12 months of the effective date, the franchisor may terminate the agreement. Disclosed
Delivery service is mandatory, not optional, and generally must be performed by the franchisee's own employed drivers unless the franchisor approves or requires third-party delivery platforms. |
| Initial term | 10 years Disclosed
Ten years from the day the restaurant first opens to the public. A successor term is also 10 years. |
| Renewal | A franchisee in full compliance may acquire one successor franchise on the franchisor's then-current terms, which may be materially different, for the shorter of 10 years or the lease term. Conditions include timely notice, keeping possession of the premises or finding acceptable substitute premises, remodelling to then-current standards regardless of cost, paying the $10,000 successor franchise fee, meeting training requirements, and signing the then-current agreements and a general release where state law permits. Disclosed
The Development Agreement has no renewal or extension right. |
| Staffing | Item 15 states that brand standards may regulate minimum staffing levels, certified manager training and dress code, but no specific headcount or operating hours are given. Item 7 budgets three months of additional funds of $50,000 to $75,000 including payroll but excluding any owner's draw. Traditional restaurants typically occupy 1,000 to 1,800 square feet. Disclosed
Specific staffing levels and required operating hours are not disclosed in the reviewed source. |
Risk and legal observations
Items 3, 4, 8, 15, 17 — summarized neutrallyLitigation: 14 matter(s) disclosed Disclosed · Bankruptcy: None disclosed Disclosed
View legal disclosures, restrictions and guarantees
| Litigation (Item 3) | 14 matter(s) disclosed Disclosed Item 3 reports no pending actions requiring disclosure. It lists 11 concluded matters over the past ten years involving the franchisor, its predecessor Jimmy John's Franchise, LLC (JJF), or related Jimmy John's entities, plus 3 concluded matters involving affiliates that franchise other Inspire Brands concepts. Three of the Jimmy John's matters were brought by franchisees or their owners: an arbitration by CWL Investments and about 29 affiliated franchisees over refused sales of their restaurants, which produced a $3.5 million compensatory award plus roughly $1.37 million in fees and costs; a claim by a former franchisee's shareholder settled for $10,000; and a C&C Resources arbitration in which the panel found in 2025 that JJF failed to give the six months' notice of non-renewal required by the Illinois Franchise Disclosure Act but awarded the claimants no damages and no fees. The remaining matters were consumer or employment class actions and regulatory proceedings: a 2014 point-of-sale data-breach class action settled for $125,000; consolidated overtime and joint-employer litigation settled for approximately $1,835,000 after the court held the defendants were not joint employers of franchisee employees; an Illinois Attorney General action over employee non-competition agreements resolved by a $100,000 consent decree; a no-poach antitrust class action settled for $10,000; two 'all-natural' cookie labelling class actions settled together for $690,000, funded by a supplier under an indemnity; a biometric privacy class action dismissed without prejudice in 2025; and a 2025 Maryland Securities Commissioner consent order, in which the franchisor paid a $30,000 penalty over omitted former-franchisee contact information in a 2022 filing and agreed to disclose the order in future FDDs. The three affiliate matters concern Arby's and Dunkin' entities and are stated not to allege conduct by Jimmy John's. |
|---|---|
| Bankruptcy (Item 4) | None disclosed Disclosed Item 4 states that no bankruptcy is required to be disclosed. |
| Personal guaranty | Required Disclosed
Owners must personally guarantee the franchisee's obligations and be bound personally by every provision of the Franchise Agreement, monetary and non-monetary, including the non-compete. The Guaranty and Assumption of Obligations forms the last two pages of the agreement. Directors and officers may additionally be required to sign a Principal's Agreement covering confidentiality and non-competition. |
| Non-compete | During the term the franchisee and its owners may not divert business, hold an ownership interest in, or perform services for a competitive business anywhere. A competitive business is defined as one deriving more than 50% of its non-beverage revenue from submarine, hero-type, deli-style or wrapped or rolled sandwiches, or one franchising such businesses. After termination or expiry, and equally after a transfer, the restriction runs for 2 years and covers the former premises, a 3-mile radius of those premises, a 3-mile radius of any Jimmy John's restaurant existing when the franchise agreement was signed, and a 1-mile radius of any Jimmy John's restaurant existing or under construction when the agreement ended. Disclosed
Because the covenant extends to a radius around every Jimmy John's restaurant in the system as at signing, its practical geographic reach can be far wider than the franchisee's own site. Owners are personally bound through the guaranty. |
| Transfer restrictions | No transfer may occur before the restaurant opens, and none without the franchisor's prior written consent. Approval will not be unreasonably withheld if every mandatory condition is met, but the franchisor states it may still withhold approval on any reasonable basis even then. Conditions include the buyer meeting its qualifications, all amounts owed to the franchisor, its affiliates and third-party vendors being paid, no default in the 60 days before the request or through completion, the buyer not being in a competitive business, training completed, the buyer obtaining site occupancy, signing the then-current franchise agreement, correcting deficiencies and agreeing to upgrade and remodel within a set period, paying the transfer fee, franchisor approval of material terms, subordination of seller financing, and a general release from the seller and its owners where state law allows. The franchisor holds a right of first refusal to match any offer for the restaurant or an ownership interest. Development rights cannot be assigned at all. On death or disability, the interest must be assigned to an approved party within 9 months. Disclosed
Transfer fees are $12,500, $7,500 or $2,500 depending on the buyer, $1,000 for a non-controlling interest, and nothing for a transfer to an entity the franchisee controls. Item 20 records 205, 170 and 124 transfers in 2023, 2024 and 2025. |
| Termination / non-renewal | The franchisor may terminate without cause only during the first 30 days after signing. With cause, cure periods are short: 24 hours to resume delivery service, 3 days for health, safety or sanitation violations, 10 days for monetary defaults to the franchisor and lapsed insurance, and 30 days for other operational defaults. A long list of defaults is non-curable, including failure to secure a site within 12 months or open within 16 months of the effective date, opening without written approval, failure to complete training, abandonment, loss of the premises, unapproved transfers, understating gross sales, repeated defaults even if cured, and receipt of a termination notice under any other franchise agreement held by the franchisee or an affiliate. On termination by the franchisor for cause, or by the franchisee without cause, liquidated damages may be charged equal to the average monthly royalty over the prior 12 months multiplied by the lesser of 36 months or the months remaining in the term. The franchisor may also buy the restaurant and its premises at fair market value or sublease the premises after the agreement ends. A franchisee may terminate only if the franchisor breaches and fails to cure after notice. Disclosed
Liquidated damages of up to 36 months of average royalties are material: at the reported average AUV of $1,007,437, a 6% royalty is roughly $5,000 per month, so a full 36-month exposure would be on the order of $180,000. That illustration is ours and is not a franchisor disclosure. |
| Supplier restrictions (Item 8) | Trade Secret Food Products and Branded Products may be bought only from the franchisor, designated affiliates or specified exclusive sources, at prices those sources set. The franchisor states it has the absolute right to limit suppliers and may extend exclusive sourcing to operating assets and services. Franchisees currently must buy all restaurant equipment and the point-of-sale system from designated suppliers, must participate in an affiliate-contracted learning management system and the franchisor's gift card program, and may be required to use a designated insurance broker, video security supplier and approved general contractors. Collectively the franchisor describes purchases subject to its specifications as virtually 100% of what a franchisee buys or leases to establish and operate the restaurant. Neither the franchisor nor its affiliates sold products or services directly to franchisees in fiscal 2025, so they derived no revenue from direct sales, but they received $65,600,000 from third-party suppliers on account of franchisee purchases, of which $3,400,000 was supplier contributions toward convention costs. Any purchases from the franchisor or its affiliates will generally be at prices exceeding their costs. Disclosed
There are no purchasing or distribution cooperatives; the franchisor and its designees negotiate supply arrangements and state they do so in the system's and their own interests rather than any individual franchisee's. |
| Dispute resolution | No arbitration or mediation clause. Item 17 marks dispute resolution by arbitration or mediation as not applicable, so disputes go to court. Suit must be brought in the courts closest to the franchisor's then-current principal business address, currently Atlanta, Georgia, and Georgia law governs, in each case subject to applicable state franchise law. The FDD's Special Risks page highlights this out-of-state litigation requirement. Disclosed
Several of the concluded matters in Item 3 nonetheless proceeded in arbitration under earlier agreements or by order compelling arbitration. |
- No exclusive or non-exclusive territory is granted, and the assigned delivery area can be reduced at any time with no liability for lost sales.
- Renewal and transfer both require remodelling to then-current brand standards regardless of cost.
- Liquidated damages of up to 36 months of average royalties may apply on termination for cause or on the franchisee walking away.
- The franchisor and affiliates received $65.6 million from suppliers on account of franchisee purchases in fiscal 2025 while making no direct sales to franchisees.
- Royalty, advertising fund and supplier payments are collected by automatic debit, and if sales are not reported on time the franchisor may debit 120% of the last amount taken.
- Non-compliance charges of $250 to $1,000 per brand-standard deviation, $2,500 per day for opening without approval, and audit costs where royalties are understated by more than 3%.
- The Operations Partner must hold at least 5% equity and, unless the franchisee is a Sophisticated Franchisee, may not have any interest in another restaurant or food business.
- The site must be secured within 12 months and the restaurant opened within 16 months of the franchise agreement's effective date; missing either is a non-curable default.
- Royalty incentives are credits tied to agreements signed by March 31, 2027 in designated markets and to compliance conditions, not permanent rate reductions.
Summaries are neutral paraphrases of the cited document and are not legal advice. Read the full Items in the current FDD and consult a franchise attorney.
Illustrative unit economics
Model estimateModel estimate — not disclosed by the franchisor, not a forecast. Fee lines below come from this brand's verified FDD fee schedule and are computed exactly as disclosed (each line shows its arithmetic). Operating-cost ratios are category placeholders we chose — every one is editable and labeled assumption. Results are illustrative arithmetic, not expected returns. Every figure here belongs to one of five labeled categories — disclosed inputs, model assumptions, unmodeled mandatory fees, user-editable assumptions, and exclusions — defined in our methodology.
| Line (annual) | Downside | Base | Upside |
|---|---|---|---|
| Revenue (AUV basis) | $608,313 | $1,007,437 | $1,158,553 |
| − Cost of goods / supplies assumption | $188,577 | $312,305 | $359,151 |
| − Payroll (excl. owner) assumption | $170,328 | $282,082 | $324,395 |
| − Occupancy assumption | $48,665 | $80,595 | $92,684 |
| − Other operating expenses assumption | $66,914 | $110,818 | $127,441 |
| − Royalty disclosed 6% of gross sales = $60,446 |
$36,499 | $60,446 | $69,513 |
| − Advertising and Development Fund disclosed 4.5% of gross sales = $45,335 |
$27,374 | $45,335 | $52,135 |
| − Local Advertising Obligation disclosed 0.5% of gross sales = $5,037 |
$3,042 | $5,037 | $5,793 |
| − Franchisee Convention assumption $500/yr (seeded from the disclosed floor) |
$500 | $500 | $500 |
| − Point-of-sale system monthly maintenance and support (Signature Systems) disclosed $250/month × 12 = $3,000 |
$3,000 | $3,000 | $3,000 |
| − Online ordering system monthly fee (Olo) disclosed $85/month × 12 = $1,020 |
$1,020 | $1,020 | $1,020 |
| − Customer loyalty program monthly fees disclosed $100/month × 12 = $1,200 |
$1,200 | $1,200 | $1,200 |
| = Modeled operating result before the items below (EBITDA-style) | $61,194 | $105,098 | $121,721 |
| − Manager compensation assumption | $60,000 | $60,000 | $60,000 |
| = Modeled result after manager compensation | $1,194 | $45,098 | $61,721 |
| − Illustrative debt service assumption | $62,323 | $62,323 | $62,323 |
| = Illustrative pre-tax cash flow — before taxes, capital expenditures and unmodeled fees | −$61,129 | −$17,225 | −$602 |
| Modeled operating margin | 10.1% | 10.4% | 10.5% |
This modeled result is not owner income. It excludes: income taxes; capital expenditures and equipment-replacement reserves; working-capital needs; ramp-up losses; owner-specific costs; one-time and per-event fees (transfer, renewal, audit); and 1 mandatory fee(s) whose amounts the FDD does not state (listed below — real outflows are higher by these amounts). It is illustrative arithmetic on stated assumptions, not a promise or forecast of what a franchisee earns.
Mandatory fees disclosed but not quantified — not included in the modeled result: the FDD requires these but states no amount (e.g. billed at "then-current" rates). They are never modeled as $0. If you have a quote or estimate, enter an annual amount to include it as your own assumption:
- Regional Advisory Council Assessment (Item 6, p. 37) — amount not stated in the FDD (e.g. “then-current fee”)
Every figure in this table is a model estimate built on the disclosed fee schedule plus labeled assumptions. Excluded: income taxes, owner draw, working-capital swings, capital expenditures, ramp-up losses in year one, one-time and per-event fees (transfer, renewal, audit), and the undisclosed-amount fees listed above. Read AUV vs. EBITDA vs. owner income before using this.
Sources and provenance
Primary source: 2026 Franchise Disclosure Document — Jimmy John's Franchisor SPV, LLC · issued 2026-03-26. Find the FDD at Wisconsin Department of Financial Institutions — Franchise Registration Search. We cite source pages and do not redistribute PDFs.
View all sources, provenance and verification notes
| Document | Obtained from | Dates | Status |
|---|---|---|---|
| 2026 Franchise Disclosure Document — Jimmy John's Franchisor SPV, LLC Registry file 640451 · 338 pages Registered in Wisconsin effective March 26, 2026; this is the most recent Jimmy John's FDD available to us. | Wisconsin Department of Financial Institutions — Franchise Registration Search | Issued 2026-03-26 Retrieved 2026-08-29 | Newest available at retrieval |
AI-assisted extraction from the archived FDD text, independently machine-verified against the cited source (two passes plus tie-break); not human-reviewed. Extracted 2026-08-29. Last updated 2026-09-05. AI-assisted extraction independently machine-verified against the cited source document (2026-09-01): two independent AI reading passes plus tie-break re-inspection of every disagreement; 74 of 77 material fields confirmed (67 with the exact page citation re-confirmed), 2 corrected, 0 unresolved, 3 confirmed not disclosed. No human has reviewed this profile. Fiscal year covered: FY2025 (Dec 28, 2025). See how we use AI and verify data.
Fields flagged as uncertain (6)
- operations.owner_involvement.value — recorded as owner_operator_required because Item 15 requires an on-site Operations Partner holding at least 5% equity, but a Sophisticated Franchisee (five or more limited-service restaurants with affiliates) may use an approved general manager instead, and the majority owner need not personally be the Operations Partner.
- fees.cooperative.value — Item 6 gives only a maximum of 'up to 2% of Gross Sales' with no current rate, so value is null and range_high is 2.
- fees.technology — no amount is disclosed; Item 6 lists the fee at cost of service and states the franchisor does not currently provide these services.
- franchisor.franchising_since — 1993 is when the predecessor Jimmy John's Franchise, LLC began franchising the system; the current franchisor entity has offered franchises only since July 2017.
- franchisor.business_since — 1983 is the year the affiliate Jimmy John's Enterprises, LLC states it has operated at least one Jimmy John's restaurant since; Item 7 note 11 separately refers to approximately 40 years of operating experience.
- item19.population_share_of_system — 94.3 is our arithmetic (2,581 of 2,737 franchised U.S. restaurants at the 2025 fiscal year end), not a franchisor disclosure.
Extraction notes (14)
- Expected validator warning (item20 2023: Table 1 franchised_end 2604 != Table 3 end 2602) — this is an inconsistency in the FDD itself, not a transcription error. Item 20 Table No. 1 and Table No. 3 disagree for 2023: Table No. 1 shows 2,604 franchised outlets at the end of 2023 and as the 2024 opening count, while Table No. 3 shows 2,602 at both points. Table No. 4 similarly shows company-owned outlets going from 41 to 42 in 2023 while Table No. 1 shows 40 to 40. Both tables are recorded as printed. The 2024 and 2025 year-end figures agree across tables and reconcile with Item 1 (2,737 franchised and 40 company-owned, 2,777 total, at December 28, 2025).
- Table No. 3 rows foot correctly in every year: 2,597 + 58 − 1 − 12 − 40 = 2,602; 2,602 + 88 − 1 − 13 − 29 = 2,647; 2,647 + 123 − 0 − 13 − 20 = 2,737.
- Both Item 7 columns foot exactly to their line items ($366,200/$733,500 traditional and $206,200/$686,000 non-traditional).
- Item 19 sub-populations reconcile: quartiles of 645 + 645 + 645 + 646 = 2,581, and 972 drive-thru + 1,584 no drive-thru + 25 non-traditional = 2,581.
- The initial franchise fee is a single standard amount of $35,000 for a traditional restaurant, so franchise_fee_low and franchise_fee_high are equal. The $17,500 non-traditional fee, the $12,500/$5,000 reopening fees and the franchisor's statement that it charged $0 to $35,000 in fiscal 2025 are recorded in notes rather than used as the range, per the standard-fee rule.
- Item 11 describes 'three weeks of training' in one passage and a four-week initial program in another; the detailed table is titled 'Four Week New Franchise Training Program' and its totals (25–45 classroom hours, 95–135 on-the-job hours) are used.
- Item 20 counts are United States only; 37 international restaurants reported in Item 1 are excluded from all tables and from the unit counts here.
- Page numbers cited are physical PDF pages of the 338-page document, which run about 8 pages ahead of the FDD's own printed page numbers.
- Verification 2026-09-01: correct /fees/technology None → {'value': 250, 'unit': 'usd_month', 'range_high': 500}
- Verification 2026-09-01: correct /fees/cooperative None → {'value': 2, 'unit': 'pct_gross_sales', 'range_high': None}
- Verification 2026-09-01: fix_page /item20/projected_openings_next_year 97 → 98
- Verification 2026-09-01: fix_page /item20/signed_not_open 97 → 98
- Verification 2026-09-01: fix_page /operations/multi_unit 7 → 9
- Verification 2026-09-01: fix_page /risk/noncompete 84 → 87
We do not host or redistribute FDD PDFs. Search the registry linked above by franchisor name to obtain the document. Found an error? Report a correction with the field and the primary source.
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