Franchise Ownership and Investment FAQs

A: The total investment to open a Jon Smith Subs franchise typically ranges from $300,000 to $500,000. This includes the franchise fee, buildout costs, equipment, initial inventory, signage, marketing, and working capital. The final cost may vary depending on location, lease terms, and construction conditions. 

A: The franchise fee for Jon Smith Subs is $39,500. This one-time fee grants access to the brand, training, support, and franchise rights to operate in a protected territory. 

A: Jon Smith Subs franchisees pay a royalty fee of 6% of gross sales. This supports ongoing corporate support, system upgrades, and national brand initiatives. 

A: Franchisees contribute 2% of gross sales to a national advertising fund, which is used to promote the brand across various media channels and drive consumer traffic. 

A: The average profit margin for a Jon Smith Subs franchise can vary, but well-managed locations with high sales volumes typically achieve double-digit net profit margins after stabilization. 

A: Most franchisees reach breakeven within 12 to 24 months of opening, depending on rent, labor costs, competition, and local market demand. 

A: The return on investment (ROI) is influenced by location, traffic, operational efficiency, and management. Top-performing stores can generate strong ROI within the first few years of operation. 

A: Ongoing costs include royalty and marketing fees, lease payments, staff wages, food and supply costs, insurance, utilities, technology subscriptions, and local advertising. 

A: Franchisees are generally required to have a minimum of $150,000 in liquid capital to qualify. This ensures they can fund the startup process and maintain operations until the business becomes self-sustaining. 

A: A minimum net worth of $300,000 is recommended to ensure financial stability, particularly when planning for multiple locations or future expansion. 

A: Prospective franchisees should have at least $150,000 in liquid capital, which includes accessible funds for startup, construction, and initial operations. 

A: The initial franchise agreement is typically for 10 years, with options to renew based on performance and compliance with the franchise system. 

A: Renewal includes a review of your operational performance, signing a new franchise agreement under current terms, and a renewal fee—generally lower than the original franchise fee. 

A: If a franchisee wishes to sell, the buyer must be approved by corporate. The franchisor provides guidance on valuation and transition support, subject to a transfer fee. 

A: The transfer fee varies, typically ranging between $5,000 and $10,000. This covers administrative processing, legal documentation, and onboarding of the new owner. 

A: Common exit strategies include resale to another franchisee or private buyer, handing over to a family member, or scaling into a multi-unit operator who absorbs your store(s). 

A: While income varies by market and operations, successful franchisees have the potential to earn six-figure annual incomes from a single location once mature. 

A: Year one ROI is typically modest as the store ramps up, but with good execution, franchisees can see significant returns by year two or three. 

A: The average payback period is 2.5 to 5 years, depending on revenue, cost controls, and operating efficiency. 

A: The FDD outlines all legal, financial, and operational details—including fees, obligations, support, earnings representations, and contact info for current franchisees. 

A: AUV varies by region, but top-performing stores can generate $700,000 or more in gross annual sales. 

A: High-traffic and well-operated locations may exceed $1 million in gross annual revenue, though results vary by region and performance. 

A: EBITDA margins typically range from 10% to 18%, depending on labor costs, rent, food waste, and local price strategy. 

A: A credit score of 680 or higher is generally required by most SBA lenders and franchise-friendly funding partners. 

A: You should budget between $350,000 and $500,000, depending on your market, buildout cost, and whether you lease or purchase equipment.

A: To qualify, you’ll need to meet financial requirements—typically a net worth of $300,000 and $150,000 in liquid capital—and demonstrate a passion for brand-building, customer service, and community involvement. Prior restaurant experience is helpful but not required. 

A: Start by filling out the online franchise inquiry form. After a brief qualification call, you’ll move through the franchise discovery process, including a Franchise Disclosure Document (FDD) review and Discovery Day visit.

A: Approval depends on financial qualifications, alignment with the brand's mission, your territory availability, and completion of the vetting and interview process with the franchise development team.

A: Visit the official Jon Smith Subs franchise website and complete the inquiry form. A member of the franchise team will follow up to discuss your goals and next steps.

A: Once you complete due diligence and attend Discovery Day, you’ll receive a final version of the franchise agreement to review, sign, and return, along with your initial franchise fee.

A: Discovery Day is an in-person or virtual event where potential franchisees meet the leadership team, tour a store, ask questions, and gain firsthand insights into the brand before signing.

A: Preparation includes reading training manuals, completing pre-opening tasks, finalizing your site selection, and attending initial training—typically held at headquarters or virtually.

A: Financing options include SBA loans, unsecured lines of credit, ROBS programs (using retirement funds), and franchisor-approved lending partners who specialize in franchise funding

A: Yes. Multi-unit ownership is available to qualified investors and offers reduced fees, operational efficiencies, and potential for regional development deals.

A: Occasionally, existing units become available for resale. Interested buyers must be vetted and approved by the franchisor, just like new applicants.

A: Passive ownership is allowed, but an actively involved and trained operating partner must be designated to run day-to-day operations and meet performance expectations.

A: Yes. Partnerships are welcome as long as at least one person is responsible for operational control and meets the training and compliance standards.

 A: Absolutely. Many franchisees come from corporate, military, or entrepreneurial backgrounds. The brand provides comprehensive training and support to help you succeed.

A: Yes, as long as a qualified manager or operating partner is approved and completes all required training. Performance accountability still rests with the franchisee.

A: Yes. Non-traditional formats like food courts, airports, and college campuses are possible with franchisor approval and may require custom layouts and operational adjustments.

A: In some cases, existing restaurants can be converted if they meet Jon Smith Subs' brand standards, size requirements, and layout guidelines.

A: Yes. The brand is open to creative site development if the location has strong traffic and operational feasibility.

A: Multi-territory deals are available for qualified franchisees with a proven business background and the ability to scale operations effectively.

 A: Yes. Many franchises are operated by family teams. All involved parties must be disclosed, approved, and trained accordingly.

A: Yes. Jon Smith Subs proudly supports veterans through discounted franchise fees and access to SBA-preferred financing programs.

A: Jon Smith Subs combines low labor costs, a high-quality product, operational efficiency, and growing consumer demand—making it a smart choice for foodservice entrepreneurs.

A: It stands out with fresh, grilled-to-order subs, high average ticket sizes, and a distinctive brand identity—offering something truly different from the typical sandwich franchise.

A: With strong systems, franchisor support, national buying power, and efficient labor models, Jon Smith Subs helps reduce many of the risks associated with starting a food business from scratch.

A: The brand is expanding rapidly across key U.S. markets, backed by consumer demand for better sandwiches and a compelling franchise model aligned with market trends.

A: Its simple operations, flexible footprints, and corporate support structure make it easy to replicate success across multiple locations.

A: Franchises are spaced strategically to avoid cannibalization, typically 3–5 miles apart in urban areas and further in suburban or rural zones.

A: Yes, locations near highway rest stops, plazas, and travel centers can perform well if they meet visibility and parking criteria.

A: Franchisees may use their own broker or work with one of Jon Smith Subs’ preferred commercial real estate partners.

A: Securing a site typically takes 60–120 days, depending on lease terms, landlord responsiveness, and broker involvement.

A: Yes, franchisees may propose a site, but it must be reviewed and approved by the real estate and development team before lease signing.

A: Rural areas can work well in high-traffic corridors, small college towns, or communities with limited fast casual competition.

A: Sites must meet criteria such as strong visibility, adequate parking, acceptable rent per square foot, and nearby anchor tenants.

A: Market saturation is measured by population-to-store ratios and potential for customer overlap. The franchisor maintains spacing standards to protect sales.

 A: The franchisor will not allow another store to open within your protected territory. Encroachment conflicts are resolved in favor of the original franchisee.

A: Territory availability is becoming more competitive as the brand grows. It's recommended to act quickly once your ideal area is confirmed open.

A: Yes, Jon Smith Subs provides access to territory mapping tools and demographic software to help you make data-driven site decisions.

 A: Ideal locations are dense with daytime traffic, working professionals, and nearby schools or retail zones with high lunch or dinner footfall.

 A: Yes, franchisees can purchase multiple territories upfront if financially qualified, often at a discounted franchise fee per location.

 A: The average Jon Smith Subs territory covers 25,000–50,000 people or 3–5 miles in densely populated markets, depending on area saturation.

 A: Yes, non-traditional venues like malls, universities, airports, and sports arenas are approved on a case-by-case basis with custom layouts and operational support.

A: Relocations are possible but must be approved by the franchisor and follow site selection and lease approval procedures.

 A: A protected territory grants the franchisee exclusive development rights within a specific geographic boundary—typically defined by zip code or population base.

 A: Territories are assigned based on population density, drive time, and commercial development zones, ensuring each unit has ample room to grow.

A: States with growing populations, strong food traffic, and underserved sandwich markets—such as Texas, Florida, Arizona, and North Carolina—are among the best places to open in 2025.

A: Yes, Jon Smith Subs offers real estate guidance including broker connections, demographic data, and assistance with site evaluation and lease negotiation.

 A: Qualified franchisees can open multiple Jon Smith Subs locations and benefit from multi-unit ownership incentives and operational efficiencies.

A: Yes, Jon Smith Subs offers exclusive franchise territories, meaning no other franchisee can operate another location within your protected area. 

A: With strong systems, franchisor support, national buying power, and efficient labor models, Jon Smith Subs helps reduce many of the risks associated with starting a food business from scratch.

 A: You can open a Jon Smith Subs franchise in any approved market where territories are still available. The franchisor is actively expanding across suburban and urban markets nationwide. 

A: Yes, Jon Smith Subs is open to new states and markets. Approval depends on demand, available support, and legal registration in that state.

A: Franchisees receive comprehensive training that includes classroom instruction, hands-on kitchen operations, POS training, marketing, hiring best practices, and compliance. It’s designed to ensure every new owner is fully prepared to open and operate their store.

A: Yes, franchisees are assigned a point-of-contact and can call the support center or field rep with any operational, HR, or compliance questions. 

 A: Yes. You’ll receive flyers, banners, social media assets, promo calendar templates, and press release examples as part of the grand opening plan. 

A: It includes tasks like permitting, staff onboarding, training schedules, food orders, POS setup, inspections, and final site walk-throughs. 

A: Yes. Jon Smith Subs adapts training content and store operations to fit airports, universities, or other high-traffic non-standard locations. 

 A: Yes, the franchisee support hotline and regional directors are always available to help with emergencies, questions, or day-to-day needs. 

 A: Yes. A franchisee portal hosts all digital training documents, videos, marketing templates, and compliance checklists 24/7.

 A: The franchisor continuously updates training materials and processes based on industry trends, technology, customer feedback, and regulatory changes. 

 A: Multi-unit franchisees receive advanced operational and leadership training, plus coaching on managing multiple locations and staff. 

 A: Field reps provide hands-on support with store setup, pre-opening tasks, launch execution, quality control, and post-opening performance audits. 

 A: Yes. Franchisees and managers are trained on the POS system, inventory tracking, scheduling software, and digital reporting dashboards. 

 A: You'll be trained in grassroots marketing, digital campaigns, loyalty programs, brand voice, and how to leverage grand opening and seasonal promotions. 

A: Yes, Jon Smith Subs provides new hire kits, checklists, training videos, and step-by-step playbooks to onboard employees efficiently. 

 A: Absolutely. Many franchisees scale efficiently within a metro by clustering stores. This reduces logistics costs, increases brand awareness, and allows shared resources. 

 A: Yes, Jon Smith Subs hosts regular webinars, regional meetups, and an annual franchisee convention for continued learning and networking. 

A: Franchisees receive a proprietary operations manual that includes recipes, customer service standards, daily checklists, safety procedures, and more. 

A: The support team will work closely with you to ensure your understanding. Additional coaching or retraining can be arranged before launch if needed. 

A: No prior experience is required. The training program is beginner-friendly and designed to help individuals from any background succeed as operators. 

A: Yes. Existing franchisees can request refresher training or enroll new managers in upcoming sessions at no additional cost in most cases.

A: Yes, you’re encouraged to involve partners or managers. The franchisor allows multiple attendees per location to ensure full operational knowledge. 

 Q: Is marketing support included in the training?A: Absolutely. You’ll be trained on local marketing, brand standards, grand opening promotions, social media tools, and how to manage your local presence. 

A: Yes, Jon Smith Subs provides employee training guides, video tutorials, in-store SOPs, and assistance during the initial hiring and onboarding process. 

A: Yes, ongoing operational support is provided through field reps, digital training tools, updated manuals, periodic visits, and a dedicated franchise success team. 

A: Training takes place at corporate headquarters and a certified training store. Additional training and opening support are also provided at your location in the weeks leading up to launch. 

 A: Absolutely. New managers can be enrolled in the next available corporate training session or receive on-site guidance from the support team. 

A: The franchisor dispatches field support to your store during the launch week. You’ll receive in-person coaching, soft opening guidance, team readiness checklists, and customer service coaching to ensure a successful debut.  

A: Yes. New franchisees are often paired with experienced owners or corporate mentors for peer-to-peer learning and operational guidance.

A: The library includes SOPs, training videos, HR templates, marketing guides, vendor lists, compliance checklists, and brand manuals accessible via the franchisee portal.

A: Yes, food safety training is a core part of the curriculum. Franchisees and staff are taught proper handling, storage, sanitation, and inspection readiness per local health codes.

A: Yes. Field reps check in regularly with scheduled support calls and visits to monitor performance, help with training refreshers, and ensure brand standards are met.

A: Absolutely. Franchisees are trained on ordering processes, approved suppliers, inventory systems, and how to handle substitutions or delivery issues.

A: Yes, the operations manual includes waste reduction strategies, portioning tools, prep timing, and inventory rotation to minimize shrinkage and boost profitability.

A: Staff training is tracked via checklists, trainer sign-offs, and POS-based training logs to ensure all employees meet onboarding milestones.

A: Yes. During your grand opening, a certified trainer or field support specialist will be on-site for several days to guide operations and answer real-time questions.

A: Franchisees may request one-on-one coaching, marketing strategy calls, or additional site visits as needed, often at no additional cost.

A: Training includes conflict resolution, customer service, staff turnover, local marketing, scheduling, and how to adapt to sales trends or slow periods.

A: Yes. Franchisees learn how to read profit & loss statements, track labor and food costs, set pricing, and understand cash flow for operational health.

A: Yes. Store managers attend franchisee training or receive onsite instruction focused on daily operations, team leadership, and opening/closing duties.

A: Materials are reviewed and updated regularly to reflect changes in menu, operations, marketing best practices, and legal compliance.

A: Yes. While beginner-friendly, the program also covers advanced systems, KPIs, and scalability practices for experienced multi-unit operators.

A: Yes. Training includes proven upselling techniques, combo promotion strategies, suggestive selling scripts, and tracking average ticket trends.

A: Yes. You receive guidance on recruiting, interviewing, and training best practices—plus job descriptions and onboarding checklists for every role.

A: Yes. All materials, videos, and job aids are stored digitally so franchisees can revisit them anytime for review or retraining purposes.

A: Yes. Field reps perform evaluations and operational audits that include team performance, training compliance, and coaching as needed.

A: Absolutely. From guest greeting to complaint handling, Jon Smith Subs emphasizes top-tier customer experience and hospitality in every interaction.

A: Absolutely. You’ll be trained on local marketing, brand standards, grand opening promotions, social media tools, and how to manage your local presence. 

A: Yes. The brand provides clear SOPs for prep, grill, register, closing, cleaning, and more to ensure consistency and efficiency.

A: Franchisees have access to digital playbooks, video modules, POS learning systems, scheduling software, and real-time dashboards.

A: Franchisees are trained in team leadership, delegation, time management, culture building, and employee motivation strategies.

A: Yes. The training timeline includes pre-opening staff onboarding so your team is ready to operate confidently from day one.