• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
Menu
  • Home
  • About
    • About Franchise Chatter
    • Contact
    • Privacy Policy
    • Terms of Service
    • Affiliate Disclosures
  • Subscribers Hub
    • Login
    • New to Franchise Chatter? Start Here
    • America’s Most Lucrative Franchises
    • Franchises Ranked by Average Revenues
    • Franchises Ranked by Average Profits
    • Franchise Winners, Survivors and Losers Last Year
    • FDD Talk
    • Search by Name
  • Top Franchises
  • Franchise Earnings
  • Costs
  • Fees
  • Quiz
  • Search

FDD Talk 2015: The Jimmy John’s Franchise Opportunity (Financial Performance Analysis, Estimated Costs, and Other Important Stuff You Need to Know)

Published on May 18, 2015 by Franchise Chatter Leave a Comment
in FDD Talk: Food Franchises, Franchise Earnings, Sub Sandwich Franchise

Jimmy John's Restaurant Exterior Photo by KenobiwanX



Learn Which Franchises Can Make You Rich

In this FDD Talk 2015 post, you’ll learn the following:

  • Section I – Background information on the Jimmy John’s franchise opportunity, including relevant news updates
  • Section II – Estimated initial investment for a Jimmy’s John’s franchise, based on Item 7 of the company’s 2015 FDD
  • Section III – Presentation and analysis of Jimmy John’s financial performance representations, based on Item 19 of the company’s 2015 FDD, including information on the:
  • 2014 average gross sales for the 1,712 Jimmy John’s Restaurants and (separately) for the 1,688 franchised Jimmy John’s Restaurants in operation during the entire 2014 fiscal year
  • 2014 average, high, and low annual and monthly gross sales for the 15 affiliate-owned Jimmy John’s Restaurants open at least 5 years
  • 2014 average, high, and low annual and monthly gross sales for the 9 affiliate-owned Jimmy John’s Restaurants open less than 5 years
  • 2014 average, high, and low cost of goods sold, labor, and net profit (as a percentage of gross sales) for the 15 affiliate-owned Jimmy John’s Restaurants open at least 5 years
  • 2014 average, high, and low cost of goods sold, labor, and net profit (as a percentage of gross sales) for the 9 affiliate-owned Jimmy John’s Restaurants open less than 5 years
  • 2014 actual gross sales, promotional and employee freebies, net sales, cash accountability, cost of sales, labor and payroll taxes, gross profit, advertising, royalties, total operating expenses, and operating profit for 2 specific affiliate-owned Jimmy John’s Restaurants (1 in Illinois, the other in Michigan)

Section I – Background Information

You’ll find more variety in the humorous decor at a Jimmy John’s restaurant than on the menu. The fast-food sandwich chain keeps it simple with nothing but sandwiches and simple sides, which helps customers get their food quickly.

That “Freaky Fast” service is the main reason Jimmy John’s Gourmet Subs made the top 10 of Entrepreneur’s annual Franchise 500 for the second year in a row. The franchise also earned its No. 6 spot for steady growth and vision for expansion, Entrepreneur said in its January 2015 issue.

America's Most Lucrative Franchises of the Year

Nation’s Restaurant News in July 2014 listed Jimmy John’s as No. 6 in its 2014 Top 100 list of fast-growing chains. The chain was noted for a 16.1 percent increase in system-wide sales, totaling $1.5 billion, from 2012 to 2013.

Humble Beginnings

Jimmy John Liautaud opened his first Jimmy John’s with his father in Charleston, Illinois, in 1983 with four sandwiches, buying used equipment and renting a space for $200 a month. He delivered sandwiches to students at Eastern Illinois University.

Liautaud bought out his father’s interest in 1985 and opened a second store in Macomb, Illinois. After opening several more stores, he began franchising in 1993. The chain opened its 100th store in 2001 and reached 500 stores in 2007 and 1,000 in 2010. Jimmy John’s currently has more than 2,100 locations.

Weston Presido, a private equity firm based in San Francisco, bought a 33 percent minority stake from Liautaud in 2007.

Reuters reported in September 2014 that Jimmy John’s had hired North Point Advisors in consideration of selling a major stake in the company.


🎯Find Good Franchises That Are Still AVAILABLE in Your Target Area (Free Tool)



🚀How to Find, Vet & FUND a Good Franchise. Watch Our Webinar Live or the Recording Later (Register Now – It's Free)



💰How Much Franchise Can You AFFORD? Use Our Free Financial Calculator


Simplicity Is the Secret

The menu at Jimmy John’s Gourmet Subs is simple: uncomplicated sandwiches, chips, cookies, pickles and drinks. The subs aren’t gourmet; Liautaud said the name was his mother’s idea.

Jimmy John’s offers six 8-inch subs on French bread, and 11 Giant Club Sandwiches, on French bread or thick-sliced seven-grain bread. These menu items are numbered 1 through 17.

Also on the menu are the J.J.B.L.T. (just like it sounds, a Jimmy John’s BLT), and the J.J. Gargantuan, a five-meat monster with provolone, onions, lettuce, tomato, mayo and Italian vinaigrette.

For those who are dieting or have lighter appetites, the menu has the Unwich, a lower-calorie lettuce wrap that leaves off the bread, and six Slim subs that leave off the sauce and veggies. A small team puts together the sandwiches, which are never heated, so customers get their food within a few minutes; sometimes considerably less.

Odd Image Sets Chain Apart

The red-and-black-themed decor at Jimmy John’s comes with what is likely to be more words on the wall than you’ll see at most places. A neon “Free Smells” sign greets customers as they walk in the door.

Franchises Ranked by Average Profits

Inside, sayings hang everywhere, including on the walls next to each table, quoting people ranging from humorists Jack Handey and Dave Barry to investor Warren Buffet. Signs offer advice such as “Work Like You Don’t Need the Money; Love Like You’ve Never Been Hurt; Dance Like Nobody’s Watching.” The bathrooms come with humorous guides.

In TV and digital media marketing, the strange commercials are enough to get many people to stop in. The “Super Seal” (which holds the sandwich wrapper together) has been a featured character in the ads, and the “Freaky Fast” service has been highlighted in numerous commercials.

In one ad, a man arrives home laden with Valentine’s Day gifts and hugs his unprepared wife, who calls Jimmy John’s on her cell phone over his shoulder and the food arrives in seconds, thrilling the husband.

Data Breach

Jimmy John’s announced in September 2014 that credit card and debit card data had been breached at 216 stores in 40 states. The data breach, which lasted from June 16 to September 5, affected both corporate and franchised restaurants. The chain, which has taken steps to prevent future breaches, is one of a number of companies that were the victims of data breaches in 2014.

Noncompete Agreement Examined

Jimmy John’s non-compete agreement came under scrutiny in 2014, including within the U.S. government, where House Democrats in October 2014 asked the Labor Department and the Federal Trade Commission to look into the agreement, which they said could be “anti-competitive and intimidating to workers.”

In signing the agreement, workers agree not to work at a competitor within 3 miles of any Jimmy John’s restaurant for two years after leaving their jobs, a restriction that in some cities could bar them from fast-food jobs. They also may not work for another Jimmy John’s for 12 months.

A federal judge in Illinois in April 2015 refused to grant an injunction that would have stopped Jimmy John’s franchisees from enforcing the agreement. The request for the injunction was part of a class action lawsuit by two former employees who alleged they had been shorted on pay.

Emily Brunner and Caitlin Turowski also asked the judge to bar Jimmy John’s from enforcing the noncompete agreement, arguing that it is overly broad and oppressive to low-paid workers. U.S. District Judge Charles Kocoras declined, noting that Bruner and Turowski had no standing to seek an injunction because the agreement had never been enforced against them.

Omission of Sprouts Gets Expensive

Californian Heather Starks filed a class action lawsuit against Jimmy John’s because she bought sandwiches that did not contain sprouts as advertised. Jimmy John’s settled in the case, awarding Starks $5,000 and offering people who properly submitted settlement claim forms vouchers for a side dish or soft drink. Attorneys behind the suit reaped the most rewards, raking in $370,000.

Section II – Estimated Costs

  • Please click here for detailed estimates of Jimmy John’s franchise costs, based on Item 7 of the company’s 2015 FDD (updated).

Section III – Financial Performance Representations (Item 19, 2015 FDD) and Analysis



To Access the Rest of This Article and Other Premium, Income-Enhancing Content, Subscribe Now or Log In.

Gain the Insider Information (and Actual Earnings Data) You Need to Make a Safe and Smart Franchise Investment. Click Here to Learn More.



Gain the Insider Information (and Actual Earnings Data) You Need to Make a Safe and Smart Franchise Investment - See more at: https://www.franchisechatter.com/register/#sthash.le7wKJKM.dpuf

🎯Find Good Franchises That Are Still AVAILABLE in Your Target Area (Free Tool)



🚀How to Find, Vet & FUND a Good Franchise. Watch Our Webinar Live or the Recording Later (Register Now – It's Free)



💰How Much Franchise Can You AFFORD? Use Our Free Financial Calculator



Franchises Ranked by Average Revenues and Profits



Franchise Winners and Losers Last Year

Tagged as: Jimmy John's

Reader Interactions

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Previous post: How Much Is a Mathnasium Franchise? (Detailed Franchise Costs)

Next post: FDD Talk 2015: The Anytime Fitness Franchise Opportunity (Financial Performance Analysis, Estimated Costs, and Other Important Stuff You Need to Know)

Primary Sidebar

🚀How to Find, Vet and FUND a Good Franchise (Webinar)

✅ Is Franchising a Path for You? – Apr. 7 (Fri.), 11 a.m. EST

✅ Popular Trends in Franchising – Apr. 11 (Tues.), 4 p.m. EST

✅ Register Now to Get Free Access to Recordings of Both Webinars

Register Now

🤔Buying a Franchise on Your Own Can Be Overwhelming

✅ Get the guidance and support you need every step of the way (including funding 💵) from an experienced franchise broker at no cost to you.

✅ Fill out this form and a specialist from the Franchise Brokers Association will reach out to you.

⭐️Franchise Chatter is reader-supported. We may receive a commission for leads generated from our site.

As seen in:  New York Times, Bloomberg Businessweek, and CNBC

Login

Remember Me
Register | Lost your Password?
Reminder: Your username and password are case-sensitive.

Need help? Email franchisechatterblog@gmail.com

👍”Your website and you have been instrumental in finding this franchise opportunity and I am overwhelmingly grateful.” (David F., subscriber)

🏆 Best Franchises by Industry

Best Franchises by Industry (All Lists)

Best Gym and Fitness Franchises

Best Pizza Franchises

Best Sandwich Franchises

Best Childcare Franchises

Best Ice Cream Franchises

Best Coffee Franchises

Best Hamburger Franchises

Best Salon and Beauty Franchises

Best Chicken Franchises

Best Smoothie and Juice Franchises

Best Maid Service Franchises

Best Mexican Restaurant Franchises

Best Massage Service Franchises

Best Tutoring Franchises

Best Auto Repair Franchises

Best Auto Oil Change Franchises

Best Asian Restaurant Franchises

Best Pet Franchises

Best Commercial Cleaning Franchises

Best Sports Bar Franchises

Best Baked Goods Franchises

Best Moving/Junk Removal Franchises

Best Mailbox Franchises

Best Apparel Retail Franchises

Best Senior Care Franchises

Best Restoration Franchises

Best Tech Franchises

Best Travel Agency Franchises

Best Trampoline Park Franchises

Best Tools Distribution Franchises

Best Property Management Franchises

Best Real Estate Franchises

Best Automotive Wheels and Tires Franchises

Best Weight Loss Franchises

Best Flooring Franchises

Best Eye Care Franchises

Best Physical Therapy Franchises

Best CBD Franchises

Best Tea Franchises

Best Ghost Kitchen Franchises

Best Acai Bowl Franchises

Best Poké Bowl Franchises

Best Donut Franchises

Best Kitchen and Bath Remodeling Franchises

Best Window Coverings Franchises

Best Plumbing Franchises

Best Home Inspection Franchises

Best Garage Franchises

Best Barbershop Franchises

Best Laundromat Franchises

Best Storage Unit Franchises

Best Car Wash Service Franchises

🚀 Daily FDD Talk Posts

Pure Green Franchise

Seniors Helping Seniors Franchise

Best Choice Roofing Franchise

LIME Painting Franchise

milliCare Franchise

One Hour Heating & Air Conditioning Franchise

PatchMaster Franchise

Spray Foam Genie Franchise

Bumble Bee Blinds Franchise

Mr. Sandless Franchise

EverLine Coatings Franchise

Blue Kangaroo Packoutz Franchise

Tommy’s Express Car Wash Franchise

Footprints Floors Franchise

Wendy’s Franchise

Clean Juice Franchise

Nurse Next Door Franchise

Made in the Shade Blinds & More Franchise

Five Star Bath Solutions Franchise

Beef ‘O’ Brady’s Franchise

Costa Vida Fresh Mexican Grill Franchise

Uptown Cheapskate Franchise

Pancheros Mexican Grill Franchise

Squeeze Franchise

Mosquito Squad Franchise

The Exercise Coach Franchise

ProLift Garage Doors Franchise

Heroes Lawn Care Franchise

Burn Boot Camp Franchise

Wing Zone Franchise

DreamMaker Bath & Kitchen Franchise

The Camp Transformation Center Franchise

Brightway Insurance Franchise

Owl Be There Franchise

The Dog Wizard Franchise

Scenthound Franchise

Bin There Dump That Franchise

Gotcha Covered Franchise

Phenix Salon Suites Franchise

AKT Franchise

Kitchen Solvers Franchise

FASTSIGNS Franchise

Zoom Drain Franchise

Pool Scouts Franchise

Ace Hardware Franchise

Signarama Franchise

Jovie Franchise

i9 Sports Franchise

UFC Gym Franchise

Sola Salons Franchise

N-Hance Wood Refinishing Franchise

Franchise Chatter © 2023