Jason’s Deli Franchise Cost Fee Profit Review

Jason’s Deli franchise is a casual fast-food restaurant chain that offers a variety of sandwiches on a pretty conventional deli menu. Each of Deli’s offers a variety of soups, a fresh salad bar, pastas, breakfast dishes, desserts, and a children’s menu in addition to the standard sandwich food. While most customers visit its restaurant directly, it also generates a respectable amount of business by providing catering for private events and business gatherings. For the flavor and excellence of its sandwiches, the company has won numerous honors. The expense of operating its franchise is discussed in more detail below.

Although the restaurant company partners with more than 20 franchisees, the majority of Jason’s Deli outlets are owned by the business itself. As per statistics, the fast-casual restaurant franchises market size is $189.7 billion in the United States in 2022 with a cumulative market growth for 2018 to 2023 anticipated at 11.5%.

What is Jason’s Deli?

In 1976, Joe Tortorice, Pat Broussard, Pete Verde, and Rusty Coco opened Jason’s Deli in Beaumont, Texas. Since it started franchising in 1988, more than 200 more restaurants in 28 states have joined the original restaurant, which is still open for business.

Although the restaurant restricts the number of franchising opportunities, detailed financial details for Jason’s Deli franchisees are not widely disclosed. On behalf of its customers, Jason’s Deli takes action that promotes health. It started the process of removing trans fats from its menu in 2005. Three years later, high fructose corn syrup was likewise removed from the menu at Jason’s Deli. 

Jason’s Deli has ceased using MSG and expanded its menu to include certain gluten-free options. To help customers make wise selections on their own, Jason’s Deli’s menu includes nutritional information including the amount of calories and fat.

Is Jason’s Deli a Franchise Opportunity?

Jasons Deli is a franchise opportunity An entrepreneur who purchases one of its casual fast-food restaurant franchises for sale joins a successful brand, gains access to tried-and-true marketing, management, and menu strategies, and receives training and support.

Facts That Nobody Told You About Jason’s Deli

• The original Jason’s Deli was established in 1976 by Joe Tortorice Jr., an Italian immigrant’s grandson, in the Gateway retail mall in Beaumont, Texas.
• The grandson of Italian immigrants and business founder, Joe Tortorice Jr., wished to extend to his deli his family’s commitment to good food and hospitality.
• According to the staff, several of the first year’s diners are still eating at the old site, which is still open.
• An exclusive group of friends and relatives made up the first crew.

Jason’s Deli Franchise Review and Information
Industry Type	Food Franchise Opportunities
Sub Category	Fast Casual Restaurants
Year Established	1976
Company Name	Deli Management, Inc.
Founder/Management Head	Joe Tortorice, Jr.
Franchising Started	1988
Employees at Company H.O	6000+
Franchise Expansion Plan	Africa, Asia, Middle East, Europe,USA and Canada
Number of Units	166
Number of Franchise Units	82
Social Media Handles	Facebook
	Twitter
	Youtube
	Instagram
Company Office location	3032 John Hawkins Pkwy Birmingham, Alabama 35244

Jason’s Deli Franchise Requirements

Since the company restricts the number of franchise options it offers, particular dollar numbers for Jason Deli franchises are not widely published. Nevertheless, the first franchise fee is reportedly $17,500, with total investments ranging from $680,000 to $905,000.

How much does a Jason’s Deli franchise cost

A Jason’s Deli franchise requires a total startup investment of between $1,126,105.80 and $1,576,444.80. Included in this is the initial franchise fee of $35,000.00, which is due to the franchisor or an affiliate.

How much does it cost to franchise a Jason’s Deli in the United States?

A total startup cost of between $1,126,105.80 and $1,576,444.80 with $17,500 as franchise fee is required to own a franchise of Jasons Deli in the United States.

Jason’s Deli Salad Bar Franchise Price
Jason’s Deli Franchise Fee	$17,500
Jason’s Deli Franchise Cost	$1,126,105.80 – $1,576,444.80
Royalty Fee	4%
Advertising Fee	2%
Term of Agreement	20 years
Is franchise term renewable?	Yes
Renewable Franchise Fees	–

How much do Jason’s Deli franchise owners make?

The Jason’s Deli franchise owners make a average revenue of $2.5 Million annually.

With retained profits of $19.97 million in 2021, the franchisor’s business, Jason’s Deli, is extremely prosperous. This is a strong signal of a solid comeback from COVID as a firm overall compared to a loss of $15 million in 2020.

What is Jason’s Deli franchise profit?

I will analyse the Jasons Deli franchise profit and years to recoup the investment (ROI).

AUV	Estimated Annual Profit (12.5%)	Estimated Annual Profit (15%)	Estimated Annual Profit (18%)
$ 2,500,1000	$312,500	$375,000	$ 450,000
Recoup mid-point $ 1,351,274	4.3  years	3.6  years	3 years

The estimated Jason’s Deli franchise profit is in the range of $ 312,500 to $ 450,000 and it will take 3  to 4.5  years to recoup the cost.

According to industry standards, getting a return on the franchise investment will not take a very long time.

Jason’s Deli Training to Franchises

A 13-week training program is required for franchisees and the other four people who will be actively managing the deli. 50 hours of classroom instruction and 625.5 hours of on-the-job training in several areas are required to become trained to manage the deli. The franchisee contract will be considered to have been broken if the training requirements are not met.

Jason’s Deli Operations to Franchises

• Franchisee will run the Deli in accordance with the Franchise Operations Manual and any other manuals that the Franchisor may occasionally use in order to safeguard the Jasons Deli System and maintain uniform standards of operation under the Licensed Rights.
• Franchisees shall only offer for sale from the Deli those goods and services specified by the franchisor and shall not sell or otherwise make available for purchase any additional goods or services of any kind or nature without the express prior written agreement of the franchisor.
• Franchisees and four other management staff members who passed the training program must personally oversee the Deli. The franchisee and Deli manager must attend and satisfactorily complete the previously mentioned franchisor-provided training.

How is Jason’s Deli Territory Granted to Franchises

In order to prevent anyone other than the franchisee from opening a Jasons Deli in your option area throughout the length of the Development Agreement, the franchisor will not establish or grant a franchise to them. Based on the estimated number of stores a certain market can support, the choice region will be chosen by the franchisee and franchisor. 

The requirement for a Development Agreement transferring an exclusive region arises from the franchisor’s preference to sell franchises in new markets to multi-unit operators. Without a Development Agreement, no exclusive territorial rights are transferred. You shall receive a sole territory inside the options region under the terms of the development agreement.

What is the Franchise Term of Agreement and Renewal?

As soon as Jason’s Deli opens; the term is 20 years. You will receive the remainder of your seller’s franchise if you buy an existing deli.

If everything is in order, you may add more terms of years (10 each). You might be required to sign a contract that differs materially from the one you initially signed in terms of its terms and conditions.

Financial Assistance to Franchises?

Franchisees do not get any assurances or hints that the franchisor or any affiliate, subsidiary, or division would provide financial support to the franchisee.

Pros & Cons of Buying a Jasons Deli Franchise

Pros of owning Jason’s Deli

1. If you have a steady flow of customers entering your restaurant, revenue will normally be relatively high.
2. There is a lot of talk in the neighborhood regarding new eateries.
3. Fast-moving food service
4. Assistance with real estate is offered

Cons of Owning a Jason Deli Franchise

1. There is a lot of employment turnover.
2. You will be required to sign a long-term commercial lease. These agreements are extremely landlord-friendly and frequently complex.
3. Ownership needs a lot of time commitment

What are Jason’s Deli franchise reviews

According to a number of surveys done in the past, Jason’s Deli is a solid choice if you want to work with them because they give you flexibility in terms of time and location to set up your franchise in addition to stimulating job tasks and empowering the capacity to accomplish personal goals. The organization needs to do better in the areas of trusting employees and offering help.

Jason’s Deli Franchise Rankings

The report “25 Best Limited Service Chains in Sales and Satisfaction” was just published by Restaurant Business. Based on financial, customer happiness, and value rankings, Jason’s Deli is ranked as the eighth best nationwide.

Franchise Deck Analysis and Overview

If you’re thinking about opening a franchise, Jasons Deli appears like a successful business to run. Its franchise price is reasonable when compared to other franchises having US sites. Considering its profit and investment recovery, it can undoubtedly be a successful franchise business for you.

Potential Risks to consider before investing in a Jasons Deli Franchise

• You are required by the franchise agreement and development agreement to resolve any issues with franchisors only in the state of Texas. You can be forced to accept a less favorable settlement for disputes if you choose out-of-state arbitration. Also, arbitration with a franchisor in Texas may be more expensive for you than in your own state. 
• Both the franchise agreement and the development agreement must be governed by Texas law, which might not offer the same protections and advantages as local law. Consider comparing these laws. 

Is Jason’s Deli Franchise Profit Worth the Cost?

The company has been slipping for the past three years. Franchise businesses and company-run retailers have both declined. Franchises have been closing at a pace of 8 units each year for the past three years. This may be a sign that the stores are underperforming or that the franchisees are not renewing their agreements once the current term has expired.

Jasons Deli Franchise Success and Failure Rate

The below table will highlight the Jason Deli franchise success and failure rate for the last 3 years. This will supplement your decision-making process.

Year	Format	Start	End	Change
2019	Franchise Owned	105	97	-8
Company Owned	174	186	+12
2020	Franchise Owned	97	85	-12
Company Owned	186	166	-20
2021	Franchise Owned	85	82	-3
Company Owned	166	166	0

Competition Analysis of Jasons Deli Franchise

	Cost to Franchise	Franchisee Fees	Royalty + Ad fees	Expected Profit	Recoup of Capital	FD Rating
Jason’s Deli	$1,126,105.80 – $1,576,444.80	$17,500	4%+2%	$405.9 million	3-4.5 years/	4.0/5.0
Old Chicago Pizza and Taproom Franchise	$1,399,000 – $2,177,000	$40,000	4%+2%	$40.3 million	–	3.9/5.0
HWY 55 Franchise	$196,055 – $433,055	$25,000	5%+2%	$5.2 million	–	3.6/5.0
Pepe’s Mexican Franchise	$207,000 – $652,000	$15,000	4%+1%	$5.9 million	–	3.7/5.0
Golden Corral Franchise	$2,168,419 – $6,602,5130	$50,000	4%+2%	$195.1 million	–	4.0/5.0
Hooters Franchise	$956,500 – $4,275,000	$75,000	5%+1%	$605 million	–	4.5/5.0

The Franchise Deck rating for the Jason Deli franchise is 4.0/5.0

Conclusion: Should You Buy the Jason’s Deli franchise for Sale?

Since it is a privately held company, Jason’s Deli franchise is not required to disclose its trade secrets. The Chief Branding Officer believes that the brand’s success secrets are not at all hidden, though. They simply have great business judgment. Four factors, according to Jamie Cohen, account for the business’s high ranking

• It concentrates on enhancing and strengthening its key competencies.
• It keeps control of the brand and pays attention to customers.
• It highlights a robust corporate culture.

If you are fortunate enough to join the company as a franchisee, you will have the support of a solid business plan and a committed corporate team.

Entrepreneurs who want to open a franchise in fast-casual restaurant opportunities categories can look at 

1. American Deli Franchise 
2. Schlotzsky’s Deli Franchise
3. Pepe’s Mexican Franchise
4. Hotbox Pizza Franchise 
5. Krispy Kruchy Chicken franchise 
6. Mr Fries Man Franchise
7. Harold’s Chicken franchise
8. Fazoli’s franchise
9. Rascal House Franchise
10. Mr beast Burger franchise

Frequently Asked Questions (FAQs)

1. Is the Jason’s Deli franchise profitable?

Anyone who is interested in starting their own business should consider the Jason’s deli franchise opportunity as it is highly profitable.

2. Can you make money owning a Jason’s Deli?

Jason’s Deli unfortunately does not disclose financials on how much Deli’s franchise owners make  but you can surely make a good amount of money.

3. Is Jason’s Deli a franchise?

Yes, Jason’s Deli offers you franchising opportunities and started franchising in the year 1988..

4. How much is a Jason’s Deli franchises?

The cost to franchise a Jasons Deli is around $1,126,105.80 – $1,576,444.80 with a minimal franchise fee around $17,500.

5. How do Jason’s Deli franchises make money?

Franchises make money by offering a variety of soups, a fresh salad bar, pastas, breakfast dishes, desserts, and a children’s menu in addition to the standard sandwich food.