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Home > Franchises > Jimmy John's Gourmet Sandwich Shops
Jimmy John's Gourmet Sandwich Shops
A franchise agreement takes place when the concerned parties involved are bound together through certain contractual provisions. This is an arrangement whereby someone with an idea for a business, the franchisor, sells to another person the franchisee the rights to use the business's name, sell a product, or provide a service to someone else. A franchise agreement will usually specify the given territory the franchisee retains exclusive control over the area protection, as well as the extent to which the franchisee will be supported by the franchisor.
Jimmy John’s was founded by James Liautaud in Charleston, Illinois in the year 1983 when he was 19 years old. With used equipment, a refrigerator, one meat slicer, a freezer and an oven, Jimmy John Liautaud started his business without even a posted menu or an outdoor sign. At the time, he offered four sandwich varieties and 25 cent soft drinks.
After passing out sandwich samples throughout the college town, John added delivery service, outdoor signs, tables, menu boards and an expanded menu. He opened several more stores and developed a prototype before he started franchising in 1993. John’s franchisees bake bread at each store every day, and every sandwich is made fresh to order within thirty seconds. Jimmy John’s franchisor is a privately-held company with 90 employees and 25 employees in the franchise department.
Jimmy John’s costs and fees include total investment of 287400 to 373000 dollars, with express or kiosk option available, with a franchise fee of 35000 dollars, ongoing royalty fee of 6 percent and 10 years term of agreement which is renewable with a renewal fee of 2500 dollars. According to the Entrepreneur magazine in 2006, Jimmy John’s ranked as the 85th leading franchise.
With their well defined pricing strategies, quality customer service and their effective sales and marketing practices, Jimmy John’s have far outdone their competition on a daily basis.
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