$422

Business Description

We are a Delaware limited liability company formed on June 12, 2017. Our principal business address is 2212 Fox Drive, Champaign, Illinois 61820. We operate under our company name and the trademarks described in Item 13 (the “Marks”) and no other name.

Prior Experience

We have offered franchises for JIMMY JOHN’S® Restaurants since July 2017. We have not offered franchises in any other line of business, have never operated a JIMMY JOHN’S® Restaurant, and have no other business activities. If we have an agent in your state for service of process, we disclose that agent in Exhibit A.

Business Offered

We grant franchises for Restaurants operating under the “JIMMY JOHN’S®” name and other Marks. (In this disclosure document, we call the Restaurants in our system “JIMMY JOHN’S® Restaurants”; we use the term “Restaurant” to describe the JIMMY JOHN’S® Restaurant you will operate.) JIMMY JOHN’S® Restaurants, which typically are located in strip shopping centers, shopping malls, and free-standing units, sell gourmet deli sandwiches, freshbaked breads, and other permitted food and beverage products (“Menu Items”) and provide carry-out, delivery, and on-premises dining services. Most Menu Items are prepared according to specific recipes and procedures and use highquality ingredients, including (1) specially formulated and specially produced JIMMY JOHN’S® proprietary lines of bread dough, meats, and other food products (collectively, “Trade Secret Food Products”) and (2) food products (other than Trade Secret Food Products) branded and/or packaged exclusively for the JIMMY JOHN’S® system and franchisees (collectively, “Branded Products”). (Branded Products also include non-food products branded and/or packaged exclusively for the JIMMY JOHN’S® system and franchisees.) Certain food and beverage products are not prepared with Trade Secret Food Products or Branded Products but still are required or authorized for sale (collectively, “Permitted Brands,” which are encompassed within Menu Items). If you acquire a franchise, you must operate your Restaurant according to our business formats, methods, procedures, designs, layouts, standards, and specifications in order to maintain the quality and consistency of the JIMMY JOHN’S® brand. We also grant multi-unit development rights to qualified franchisees, who then may develop a number of JIMMY JOHN’S® Restaurants (but no less than 4) within a defined area over a specific time period or according to a pre-determined development schedule. These franchisees may open and operate JIMMY JOHN’S® Restaurants directly or through entities they own or control. Our Development Rights Rider to the Franchise Agreement is Exhibit C. Franchisees signing our Development Rights Rider must sign our then-current form of Franchise Agreement for each additional JIMMY JOHN’S® Restaurant they develop. That form may differ from the form of Franchise Agreement included in this disclosure document. If you are renewing your franchise because its current term is about to expire, you will sign our Successor Franchise Rider to Franchise Agreement (Exhibit I), which generally modifies certain provisions in our standard Franchise Agreement that do not apply to you because your Restaurant already is open. Your Restaurant will offer products and services to the general public throughout the year and compete with other sandwich shop chains (local, regional, and national), restaurants, and food service businesses. The market for JIMMY JOHN’S® products and services generally is developed and very competitive. Despite this competition, we believe JIMMY JOHN’S® Restaurants appeal to consumers because of our system’s product and service quality.

Initial Fees

You must pay us an initial franchise fee in full when you sign the Franchise Agreement. Our standard initial franchise fee currently is $35,000. If you are a franchisee in good standing and buy a second or additional franchise, the initial franchise fee for that additional unit currently is $30,000 (unless it is under a Development Rights Rider, as described below). The initial franchise fee is used to cover, among other things, the costs of evaluating your proposed site, providing the initial training program, and helping you develop and open your Restaurant (although the initial franchise fee is not in exchange for any particular products, services, or assistance). If you sign our Development Rights Rider to the Franchise Agreement because you commit to develop at least 4 JIMMY JOHN’S® Restaurants in an area, we currently charge a development fee that you must pay in full when you sign the Development Rights Rider. You must pay a $35,000 initial franchise fee for the first Restaurant and a $30,000 initial franchise fee for each additional Restaurant to be developed. The development fee due when you sign the first Franchise Agreement and Development Rights Rider equals the full $35,000 initial franchise fee for the first Restaurant, plus the full $30,000 initial franchise fee due under each additional Franchise Agreement you sign concurrently with signing the Development Rights Rider for the development of Restaurants under the development schedule, plus a deposit of $25,000 for each additional Restaurant you agree to construct, develop, and operate under the development schedule but for which you are not signing a Franchise Agreement concurrently with signing the Development Rights Rider. The balance of the initial franchise fee (that is, $5,000) for each Restaurant in the last group is due when you sign the Franchise Agreement for that Restaurant. We and you will determine the number of Restaurants you must develop, and the dates by which you must develop them, before signing the Development Rights Rider. Initial franchise fees under Franchise Agreements are fully earned when paid and not refundable under any circumstances, except as provided below: 1. Your owners must give us all data we request regarding their personal abilities, aptitude, and financial qualifications. We have 30 days after the Franchise Agreement’s effective date to evaluate this data and may cancel the Franchise Agreement within that time period. If we cancel the Franchise Agreement, we will refund the monies you paid us under the Franchise Agreement, less a reasonable fee for evaluation and other preparatory work and less expenses we actually incurred (but not more than $3,000 total). 2. If you do not secure a Restaurant site we have accepted within 12 months after the Franchise Agreement’s effective date, either we or you may terminate the Franchise Agreement. In that case, we will (except as provided in the following sentence) return all but $5,000 of the initial franchise fee if you sign our required form of release of claims. However, if you signed the Franchise Agreement under a Development Rights Rider we signed with you (or your affiliate) granting multi-Restaurant development rights, and you already paid us the full initial franchise fee due for the Restaurant, we will not return to you any portion of that initial franchise fee if the Franchise Agreement is terminated because you fail to find an acceptable site for the Restaurant within the timeframe required under the Franchise Agreement or the Development Rights Rider. 3. If your Operations Partner cannot complete to our satisfaction initial training or the apprenticeship program, we may terminate the Franchise Agreement and, if we do, keep ½ of the initial franchise fee. In that event, we will return the other ½ to you if you sign our required form of release of claims. No portion of the development fee is refundable under any circumstances. So, if you sign the Development Rights Rider, sign one or more Franchise Agreements, pay the development fee, and then cannot find sites for JIMMY JOHN’S® Restaurants or choose not to move forward with the deal for another reason (in which case the Development Rights Rider and one or more Franchise Agreements are terminated), we may keep the entire development fee and need not return any money to you. After you pay us the $5,000 balance of the initial franchise fee due when you sign a Franchise Agreement (for each Franchise Agreement committed to but not signed when you sign the Development Rights Rider), that $5,000 is not refundable under any circumstances. Our system provides initial management training for 2 people at no cost (3 people if you are a first-time franchisee developing your first JIMMY JOHN’S® Restaurant). However, if your Operations Partner or on-site managers that you have designated to become certified cancel participation in any training class or apprenticeship program that is part of this “no cost” initial training, you must pay us a cancellation fee. The cancellation fee is one-half of the thenapplicable training fee per person (depending on which class or program is involved) if they cancel more than 2 weeks before the class or program is scheduled to begin (this per-person cancellation fee is $750 as of this disclosure document’s issuance date). The cancellation fee is 100% of the then-applicable training fee per person (depending on which class or program is involved) if they cancel 2 weeks or less before the class or program is scheduled to begin (this per-person cancellation fee is $1,500 as of this disclosure document’s issuance date). The cost for each additional trainee attending initial management training (after the first 2 people) is currently $1,500. However, if you are a first-time franchisee opening your first JIMMY JOHN’S® Restaurant, this additional training fee is not charged for your third trainee for that first Restaurant. The cost for the Area Manager training program is currently $2,000. If your Operations Partner or on-site managers that you have designated to become certified cancel participation in any management training class or apprenticeship program for which they pre-register and pay a training fee, the training fee you paid will not be refunded or reimbursed. If participation is cancelled more than 2 weeks before the class or program is scheduled to begin, one-half of the training fee will be applied as a credit towards a future training class or program. However, if participation is cancelled 2 weeks or less before the class or program is scheduled to begin, you will receive no credit at all. Any credits that you might receive are transferable among your affiliates and any other JIMMY JOHN’S® Restaurants that you might own, but are not transferable to other franchisees under any circumstances. No costs are reimbursed if a training attendee is expelled (no matter the reason) from the training program. An expelled trainee must wait at least 6 months before he or she may reapply to attend a training class (although re-admittance is not guaranteed and is in our judgment). If a previously expelled trainee is allowed to attend training, the training fee currently is $2,000. If you have the opportunity to buy the assets of an existing JIMMY JOHN’S® Restaurant from JJE, you will sign an asset purchase agreement (and related materials) with JJE and a Franchise Agreement with us. You will pay JJE the applicable purchase price according to the terms of the asset purchase agreement. The purchase price for an affiliated JIMMY JOHN’S® Restaurant depends on the Restaurant’s age, location, condition, profitability, cash flow, and other relevant market factors. If you exercise the opportunity to purchase an affiliate-owned Restaurant, then JJE and you will negotiate the appropriate purchase price. The purchase price is not refundable once paid.

Financing

We do not offer direct or indirect financing. We do not guarantee your note, lease, or obligation.

Franchisee Revenue and Profit

Gross Sales Information for Certain Franchised Jimmy John’s® Restaurants and Gross Sales and Other Operating Information for Certain Affiliate-Owned Jimmy John’s® Restaurants This financial performance representation contains (1) actual average and median annual gross sales information for all JIMMY JOHN’S® Restaurants (both franchised and affiliateowned), and separately for all franchised JIMMY JOHN’S® Restaurants, in operation in the United States during the entire 52-week period beginning January 3, 2018, and ending January 1, 2019 (Section I), (2) information regarding the actual gross sales and certain other operating results of affiliate-owned and operated JIMMY JOHN’S® Restaurants that opened on or before January 3, 2018 (41 of 42 Restaurants total) (Section II), and (3) actual partial operating financial statements for 2 affiliate-owned and operated JIMMY JOHN’S® Restaurants (Section III). Section I Actual 2018 Average and Median Annual Gross Sales for All Jimmy John’s® Restaurants and (Separately) for All Franchised Jimmy John’s® Restaurants in Operation During the Entire 52- Week Period Beginning January 3, 2018, and Ending January 1, 2019 The actual 2018 average and median annual gross sales (defined below) for all JIMMY JOHN’S® Restaurants in the system in the United States that were open for operations during the entire period from January 3, 2018, through January 1, 2019 (the “2018 Fiscal Year”), including both franchised and affiliate-owned Restaurants, were $775,067 and $727,284 respectively. Gross sales (for purposes of the system-wide average and median) are defined as gross receipts net of sales tax but after deducting amounts for coupons and promotions. The average and median include all Restaurants that were open during the entire 2018 Fiscal Year.2 The total number of Restaurants included in this average and median was 2,655 (41 affiliate owned and 2,614 franchised).3 This average and median do not include 112 Restaurants that opened or resumed operations during 2018, 34 Restaurants that suspended operations during 2018, and 57 Restaurants that closed during 2018 (including 1 franchised Restaurant that opened and closed during 2018). In addition, there were 705 Restaurants for which Franchise Agreements had been signed, but which were not yet open, as of January 1, 2019, the end of the 2018 Fiscal Year. The number of franchised Restaurants open for operations during the entire 2018 Fiscal Year whose actual gross sales (after deducting coupons and promotions) for the 52- week period beginning January 3, 2018, and ending January 1, 2019, exceeded the $775,067 average totaled 1,120 (43%). The number of franchised Restaurants open for operations during the entire 2018 Fiscal Year whose actual gross sales (after deducting coupons and promotions) for the 52-week period beginning January 3, 2018, and ending January 1, 2019, exceeded the $727,284 median totaled 1,295 (49.5%). The number of affiliate-owned Restaurants open for operations during the entire 2018 Fiscal Year whose actual gross sales (after deducting coupons and promotions) for the 52-week period beginning January 3, 2018, and ending January 1, 2019, exceeded the $775,067 average totaled 30 (73%). The number of affiliate-owned Restaurants open for operations during the entire 2018 Fiscal Year whose actual gross sales (after deducting coupons and promotions) for the 52-week period beginning January 3, 2018, and ending January 1, 2019, exceeded the $727,284 median totaled 32 (78%). The highest grossing Restaurant in the system during this 52-week period (a franchised unit) had gross sales of $1,936,955. The lowest grossing Restaurant in the system during this 52-week period (a franchised unit) had gross sales of $213,285. The franchised Restaurants whose average and median gross sales are reported above are located in various types of structures (for example, strip mall, shopping center, food court, and free-standing) and various types of venues (for example, college campus, downtown, metropolitan area, and suburban area). The 41 affiliate-owned Restaurants are located primarily on college campuses. The gross sales information for franchised Restaurants was obtained from weekly sales reports submitted by franchisees to JJF. Neither we nor JJF has independently audited that information. The franchised Restaurants that were open for operations during the entire 2018 Fiscal Year and whose average and median gross sales are reported above are substantially similar to the Restaurant franchises we currently offer. The actual 2018 average and median annual gross sales (after deducting coupons and promotions) for the 2,614 franchised JIMMY JOHN’S® Restaurants open for operations during the entire 2018 Fiscal Year were $770,074 and $724,849 respectively. The number of franchised Restaurants open for operations during the entire 2018 Fiscal Year whose actual gross sales (after deducting coupons and promotions) for the 52-week period beginning January 3, 2018, and ending January 1, 2019, exceeded this $770,074 franchised Restaurant average totaled 1,140 (44%). The number of franchised Restaurants open for operations during the entire 2018 Fiscal Year whose actual gross sales (after deducting coupons and promotions) for the 52-week period beginning January 3, 2018, and ending January 1, 2019, exceeded this $724,849 franchised Restaurant median totaled 1,307 (50%). The highest grossing Restaurant in the system during this 52-week period (a franchised unit) had gross sales of $1,936,955. The lowest grossing Restaurant in the system during this 52-week period (a franchised unit) had gross sales of $213,285. The actual average and median annual gross sales numbers reported above do not reflect the costs of sales, operating expenses, or other costs or expenses that must be deducted from the gross sales figures to obtain your net income or profit. You should independently investigate the costs and expenses you will incur in operating your JIMMY JOHN’S® Restaurant. Franchisees or former franchisees, listed in the Franchise Disclosure Document, may be one source of this information. The actual gross sales volumes of JIMMY JOHN’S® Restaurants are affected by traffic count; accessibility and visibility of a site; the local marketplace and competition; general economic conditions; the franchisee’s management skill, experience, business acumen, and ability to promote and market JIMMY JOHN’S® Restaurants effectively in the local market; and the degree of adherence to our methods and procedures in operating the Restaurant. Section II Annual and Monthly Gross Sales Ranges, Averages, and Medians, and Certain Cost Information, for Affiliate-Owned Jimmy John’s® Restaurants Chart A1 below relates to the annual and monthly gross sales ranges, averages, and medians for the period beginning January 3, 2018, and ending January 1, 2019 (the “AffiliateOwned 2018 Fiscal Year”), of the 33 JIMMY JOHN’S® Restaurants owned and operated by JJE that opened before January 1, 2014, and were open for operations during the entire AffiliateOwned 2018 Fiscal Year.4 Seven of these Restaurants operated in Illinois, 4 operated in Indiana, 14 operated in Michigan, 2 operated in Oklahoma, and 6 operated in Wisconsin. Gross Sales are defined in this section as gross receipts net of sales tax but before deducting amounts for coupons and promotions. The actual annual gross sales for these 33 Restaurants during the AffiliateOwned 2018 Fiscal Year ranged from a low of $619,760 to a high of $1,702,487 with an average of $1,107,327 and a median of $1,081,958. Average monthly gross sales for these 33 Restaurants during the Affiliate-Owned 2018 Fiscal Year ranged from a low of $47,674 to a high of $130,961, with an average of $85,179 and a median of $83,228. Some JIMMY JOHN’S® Restaurants have earned these amounts. Your individual results may differ. There is no assurance that you will earn as much. Written substantiation of all financial performance information presented in this financial performance representation will be made available to you upon reasonable request. This financial performance representation was prepared without an audit. Prospective franchisees or sellers of franchises should be advised that no certified public accountant has audited these figures or expressed his/her opinion with regard to their contents or form. Other than the preceding financial performance representation, we do not make any financial performance representations. We also do not authorize our employees or representatives to make any such representations either orally or in writing. If you are purchasing an existing outlet, however, we may provide you with the actual records of that outlet. If you receive any other financial performance information or projections of your future income, you should report it to the franchisor’s management by contacting the Legal Department, Jimmy John’s Franchisor SPV, LLC, 2212 Fox Drive, Champaign, Illinois 61820, (217) 356-9900, the Federal Trade Commission, and the appropriate state regulatory agencies.