Jimmy John's Parent Details New Development Strategy at FIC
Jimmy John's wants multi-unit franchisees, rather than the one- or two-unit owners of the past, and those who want to do "cross-brand" development under the Inspire Brands umbrella.
Inspire Brands is promoting "cross-brand development" to prospective franchisees, trying to attract sophisticated, multi-unit operators who want to build Buffalo Wild Wings, Jimmy John's, Arby's and/or Sonic stores.
Those are the four restaurants under the umbrella of Atlanta-based Inspire Brands, formed in February 2018, but Joe Sieve, VP of franchise development, said more are to come. "More acquisitions are imminent, so we look forward to growing our portfolio," he said. speaking at the Franchise Investment Conference today.
Jimmy John's, which was acquired in the fourth quarter of 2019, is moving toward the multi-unit operator, with a minimum net worth of $1 million and liquidity of $200,000. "The target franchisee in the past was single unit, now we're looking at better resourced and capitalized multi-unit operators," Sieve said. "We find a benefit at Inspire Brands of scale in this industry; we know our franchisees find benefit" in scale as well.
Cost of a Jimmy John's franchise ranges from $313,600 to $556,100 to open; royalties are 6 percent of sales and the ad fund is 4.5 percent.