Business Overview

Headquartered in Champaign, IL, Jimmy John’s was founded in 1983 and now boasts over 2500 units nationwide. In September 2016 a majority stake was sold to Roark Capital, a private equity firm also invested in Arby’s, Carvel, Auntie Anne’s Pretzels, Wingstop and Cinnabon, among others. A simple menu and good product with only the freshest ingredients sets the brand apart in the sandwich QSR segment. Franchisor requires a minimum net worth of $1M with at least $200K in liquid assets, or commensurate with purchase. Restaurant experience preferred but not required

Financial

  • Asking Price: $275,000
  • Cash Flow: $67,735
  • Gross Revenue: $721,200
  • EBITDA: $67,735
  • FF&E: N/A
  • Inventory: $5,500
  • Inventory Included: N/A
  • Established: 2008

Detailed Information

  • Property Owned or Leased:N/A
  • Property Included:N/A
  • Building Square Footage:1,200
  • Lot Size:N/A
  • Total Number of Employees:13
  • Furniture, Fixtures and Equipment:N/A
About The Facility:

All FF&E to be in good working condition prior to change over.

Is Support & Training Included:

Franchisor provides 3 weeks of training.

Purpose For Selling:

Other business interests.

Opportunities and Growth:

Growth in brand via new development or acquisition of existing units.

Established Franchise:

This Business Is An Established Franchise

Additional Info

The business was started in 2008, making the business 14 years old.
The sale shall not include inventory valued at $5,500*, which ins't included in the listing price.

The business has 13-14 employees and resides in a building with estimated square footage of 1,200 sq ft.
The building is leased by the company for $2,800 per Month

Why is the Current Owner Selling The Business?

There are all sorts of reasons why people resolve to sell businesses. Nevertheless, the genuine reason vs the one they say to you might be 2 completely different things. As an example, they may say "I have a lot of other responsibilities" or "I am retiring". For numerous sellers, these factors stand. However, for some, these may simply be excuses to try to conceal the reality of altering demographics, increased competitors, current reduction in profits, or a range of other factors. This is why it is very vital that you not depend completely on a vendor's word, yet rather, make use of the seller's answer along with your total due diligence. This will paint an extra realistic image of the business's existing circumstance.

Existing Debts and Future Obligations

If the existing entity is in debt, which numerous companies are, then you will certainly have reason to consider this when valuating/preparing your deal. Lots of companies take out loans with the purpose of covering points such as inventory, payroll, accounts payable, and so on. Remember that in some cases this can mean that profit margins are too small. Numerous companies fall under a revolving door of taking loans as a way to pay back various other loans. Along with debts, there may also be future commitments to take into consideration. There may be an outstanding lease on tools or the building where the business resides. The business might have existing contracts with suppliers that must be met or may cause charges if canceled early.

Understanding the Customer Base, Competition and Area Demographics

How do operating businesses in the location attract new consumers? Many times, companies have repeat customers, which develop the core of their daily revenues. Certain factors such as new competition growing up around the location, roadway building and construction, and staff turnover can influence repeat clients and also adversely influence future earnings. One crucial thing to consider is the placement of the business. Is it in an extremely trafficked shopping mall, or is it concealed from the main road? Certainly, the more people that see the business regularly, the greater the chance to develop a returning customer base. A last thought is the basic location demographics. Is the business placed in a largely inhabited city, or is it located on the edge of town? Exactly how might the neighborhood mean home earnings influence future revenue prospects?