On October 18th 2019, Inspire Brands announced that they finally completed the acquisition of Jimmy John’s.
After this big purchase, Inspire Brands now holds over 11,200 restaurants in 16 countries. Their holdings make over $14 billion in sales each year. These figures are enough to make them the 4th biggest restaurant company in the United States.
James North, a former employee of JJ’s holds the position of CEO. While Jimmy John Founder of the business now holds the position of advisor on the team.
How They Started
Jimmy John’s had one of the most humble beginnings. The founder only started with a $25,000 investment in 1993 just after graduating from his high school in the second last Sept.
He had initially planned to start a hotdogs stand, but since his capital was not enough to start that, he settled with a sandwich stand. But with a unique business model, he soon made his business a success. Franchises started being sold, and the business reported 2000 franchises in 2014. They are expected to have over 2,800 franchises by now.
Jimmy sold his business to Roark Capital in two phases. In the first phase, he held on to 35% of the shares and sold the rest to Roark, his business was valued at $3 billion. In 2019, he sold the rest of his shares to Roark as well, completing their acquisition of the business.
A Word About Inspire Brands
As already mentioned, Inspire Brands is one of the leading restaurant companies operating in the United States. It is a subsidiary of Roark Capital, and was found in 2018.
Roark Capital Mostly invests in franchise and multi-unit businesses. Roark currently invests 73 different businesses since its inception. All of the holding of Roark make over $37 billion in sales each year.
Their business empire is spread across 81 countries, 50 states and 36,000 locations.