If you are entrepreneur looking to start a sandwich restaurant, you might want to try a franchise business like Jimmy John’s. It is basically a sub restaurant that focuses on freshness and speed of delivery, they market this pretty heavily. The thing to consider here is the benefit of buying a franchise of the already well established business. But this is not all you need to know, because they also have some rules that you will need to follow if you want to own a JJ’s franchise. This is the same business that made Jimmy John Liautaud Founder a billionaire.
What You Will Need Financially
Many franchise owned businesses require that you have a minimum financial power to buy their franchise. This varies from business to business. These limits are placed just to ensure that the franchise owner will be able to run a successful business without any financial hurdles.
Jimmy John’s also have a certain criteria that you must follow. They require that you have at-least $80,000 in non borrowed cash and at-least $300,000 in personal wealth to own their franchise. While they clearly mention on their website that they do not offer any financial support, they often connect interested parties with appropriate lenders that might be interested in investing in your franchise.
Do They Charge Any Fees?
Since you will be using their name and brand reputation to make money, JJ’s, and all other franchise owned businesses do charge a fees from their franchise owners based on the benefit they are getting by using their brand name. Jimmy John’s charges a flat 6% of all the gross sales made by a franchise. They also keep advertising their business and franchises get benefit from these ad campaigns. That is why they also charge 4.5% of gross sales in terms of advertising fees.