Jimmy John's Franchise
Cost, fees, owner earnings, closure rate and litigation for a Jimmy John's franchise — pulled from the franchisor's own public FDD (2026), not its sales material.
Disclosure honesty
Jimmy John's discloses earnings (Item 19) — but the grade is how honestly. We graded it B.
What their own earnings claim actually says
2025 AUVs: 2,581 restaurants, median $955,639, average $1,007,437. Excludes new, closed, multi-brand locations. No net income/expense data provided.
What a Jimmy John's franchise actually costs to run
| Fee | Disclosed | Where it comes from |
|---|---|---|
| Initial franchise fee | $17,500 | Item 5 — paid up front, before you open |
| Royalty | 6% of gross sales | Item 6 — charged on revenue, not profit |
| Advertising fund | 4.5% of gross sales | Item 6 — brand marketing, spent at the franchisor's discretion |
| Total recurring fees | 10.5% of gross sales | Before rent, labor, food or debt service |
| Total initial investment | $206,200 – $733,500 | Item 7 — franchisor's own low/high estimate |
6% royalty, 4.5% ad fund (2.25% non-traditional), variable transfer fees $2,500-$12,500, $10,000 successor fee.
Royalty and ad-fund percentages are charged on gross sales — an owner pays them whether or not the location is profitable.
Jimmy John's system size and owner turnover
| Total outlets | 2,777 |
| Ceased operations | 33 |
| Transferred to new owners | 90 |
| Closure rate | 1.2% of outlets |
33 closures in 2025; transfer activity elevated at 90 units; system net growth 88.
From Item 20 of the FDD 2026. Terminations and ceased operations are the franchisor's own count of owners who stopped — the number the sales pitch leaves out.
Is Jimmy John's worth it? — how it compares to 22 similar franchises
| Ongoing fees | 10.5% of sales | steeper than 76% of sandwich & sub shops franchises |
| Startup cost | from $206,200 | cheaper than most (median $436,176) |
| Disclosure honesty | Grade B | more honest than 70% of sandwich & sub shops franchises |
| Closure rate | 1.2% of outlets | about average |
| Disclosed lawsuits | 13 | more litigious than 91% of peers |
Benchmarked against every sandwich & sub shops franchise we've graded from public FDDs — the context the franchisor's pitch never gives you.
Owner take-home for a Jimmy John's
The franchisor's framing: 2025 AUVs: 2,581 restaurants, median $955,639, average $1,007,437. Excludes new, closed, m… We reconstruct what an owner actually keeps, from their own FDD.
- Reconstructed owner P&L — net take-home after royalty, ad fund, rent, labor & debt
- Break-even timeline + cash-on-cash ROI
- Full fee stack + required-purchase markups
- Decoded real failure / closure rate
- How it ranks vs comparable franchises
- Validation-call playbook — the exact questions to ask
See a full sample report → · 30-day guarantee
Jimmy John's franchise — frequently asked
- How much does a Jimmy John's franchise cost?
- The FDD lists a total initial investment of about $206,200–$733,500, including a $17,500 initial franchise fee.
- How much do Jimmy John's franchise owners make?
- 2025 AUVs: 2,581 restaurants, median $955,639, average $1,007,437. Excludes new, closed, multi-brand locations. No net income/expense data provided. We grade this disclosure B for honesty.
- What are the Jimmy John's franchise fees?
- Jimmy John's FDD discloses a $17,500 initial franchise fee, a 6% royalty on gross sales, a 4.5% advertising-fund contribution, for roughly 10.5% of gross sales in recurring fees before rent, labor, or debt service. 6% royalty, 4.5% ad fund (2.25% non-traditional), variable transfer fees $2,500-$12,500, $10,000 successor fee.
- What is the Jimmy John's franchise profit margin?
- Jimmy John's does not publish a franchisee net-profit margin — almost no franchisor does. What Item 19 actually shows: 2025 AUVs: 2,581 restaurants, median $955,639, average $1,007,437. Excludes new, closed, multi-brand locations. No net income/expense data provided. Recurring fees alone take about 10.5% of gross sales, before rent, labor, food or debt service. Margin has to be reconstructed from the disclosure, not read off it.
- What is the Jimmy John's franchise failure rate?
- 33 closures in 2025; transfer activity elevated at 90 units; system net growth 88.
- How many Jimmy John's locations are there?
- Jimmy John's FDD reports 2,777 total outlets, with 33 that ceased operations in the most recent reporting year and 90 transferred to new owners. Item 20 is where system health shows up before the marketing does.
- Does Jimmy John's have complaints or lawsuits?
- Jimmy John's discloses 13 legal matters in Item 3 of its FDD. Item 3 covers the franchisor's litigation history, which is the closest thing to a public record of how it treats franchisees — read the case descriptions, not just the count.
- Is a Jimmy John's franchise worth it?
- It depends on the numbers, not the pitch. Jimmy John's scores B on disclosure honesty, carries about 10.5% of sales in ongoing fees, and discloses 13 legal matters. Get the real owner take-home before you sign.
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Compare Jimmy John's to similar franchises
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Source: MN CARDS 35680-202603-02 (Clean FDD 2026). FranchiseValidate is independent and not affiliated with Jimmy John's or its franchisor. Figures are extracted from the franchisor's own public disclosure document; verify against the current FDD before any decision.