Jimmy John's

Can you provide details on the 5 litigation cases filed in the past 3 years and the 2 currently pending cases, including the nature of disputes and current status?

Why is the franchisor defendant in 8 cases compared to being plaintiff in 4 cases? What are the primary complaint categories?

The ad fund rate of 4.5% is above the typical 2.0-4.0% range for QSR franchises. How is this fund allocated and what marketing initiatives does it support?

The non-compete restriction of 3 miles is narrower than the typical 5.0-10.0 mile range. What is the rationale for this narrower protection, and how does it affect franchisee territories?

With no territorial exclusivity and no encroachment protection, how does the franchisor prevent overlap between locations, and can multiple franchisees operate in the same area?

Of the 238 units transferred in 2022, what percentage were franchisor-approved transfers versus franchisee-initiated sales? What are the approval criteria?

Regarding the 16 non-curable defaults identified in the termination clause, can you provide the complete list and clarify what constitutes a material breach?

The renewal conditions require 8 criteria including restaurant remodeling. What are the estimated costs for remodeling to maintain compliance?

Can you clarify the personal guarantee requirement that makes franchisees jointly and severally liable for all provisions of the franchise agreement?

For the operational control clause restricting suppliers to 8 designated categories, which items are available only from the franchisor or exclusive sources, and what are the markups on franchisor-supplied goods?

What is the average unit volume (AUV) breakdown by location type (urban, suburban, airport, etc.) based on Item 19 data?

How many of the 43 closures in 2024 were voluntary (business decisions) versus franchisor-initiated (terminations or non-renewals)?

The franchise agreement requires timely renewal notice and restaurant remodeling. What is the notification timeline and estimated remodeling cost for renewal?

Given the 2 pending litigation cases, what is the nature of these disputes and what is the potential financial exposure to franchisees?

Can you provide details on the 79 units that 'ceased other' in 2022 and 42 in 2024? What does this category represent?

How does Jimmy John's support franchisees in securing financing given the $35,000 franchise fee and typical build-out costs?

What recourse do franchisees have if the franchisor fails to meet its indemnification obligations under the liability clause?

Are there any historical disputes related to royalty calculations, and what audit rights do franchisees have regarding the ad fund?

The transfer fee is $12,500 plus the $10,000 renewal fee. Can you explain all fees associated with transferring or renewing a franchise?

Given the high transfer rate of 6.4%, what are the primary reasons franchisees cite for selling their locations?