Dairy Queen vs Jimmy John's
Dairy Queen vs Jimmy John's: Dairy Queen costs $549K to $2.5M to open; Jimmy John's costs $25K to $366K. Dairy Queen has 1,575 units, Jimmy John's has 2,689. SBA loan history: Dairy Queen = 2,005 loans (7.2% default); Jimmy John's = 1,071 loans (4.3% default). The franchise with more SBA funded units, a lower SBA default rate, and a lower royalty load is the safer financing bet; see the comparison below.
Dairy Queen vs Jimmy John's: Capital, Scale & Lending Analysis
Analysis based on FDD filings and SBA 7(a) loan level data. Each pairing reflects a unique combination of capital intensity, system scale, and financing path.
Capital Intensity
Jimmy John's requires the lower minimum capital commitment ($25K vs $549K for Dairy Queen), a 2096% spread. Initial franchise fees come in at $45K for Dairy Queen versus $35K for Jimmy John's, Jimmy John's has the lower entry fee. Ongoing royalty load is 4% for Dairy Queen and 6% for Jimmy John's, giving Dairy Queen the lighter per-unit drag on operating income.
System Scale & Tenure
On scale, Jimmy John's operates 2,689 units to Dairy Queen's 1,575. Dairy Queen has been operating 86 years (founded 1940) versus 43 for Jimmy John's (founded 1983), a 43-year tenure gap that affects unit-economics maturity and FDD revision history.
SBA Lending Profile
Dairy Queen has the deeper SBA lending track record, with 2,005 7(a) approvals compared with 1,071 for Jimmy John's. Dairy Queen's peak SBA year was 2000 (103 loans); Jimmy John's's peak was 2015 (127 loans). Jimmy John's's more recent peak generally indicates fresher lender appetite. Dairy Queen has the most SBA funded units in OH, with 121. Jimmy John's leads in IL, with 92. Borrowers should pick the brand whose strongest SBA state matches their own state for warmer lender introductions. Average SBA loan size on funded Dairy Queen deals is $401K vs $433K for Jimmy John's, useful as a sizing anchor when modeling your own unit.
Risk Signal
SBA default rates are 7.2% for Dairy Queen and 4.3% for Jimmy John's, Jimmy John's has the cleaner SBA loss record by 2.9 points. PeerSense FPI scores come in at 60 (Moderate) for Dairy Queen and 58 (Moderate) for Jimmy John's, giving Dairy Queen the stronger composite signal across SBA performance, lender appetite, and operational consistency.
Health & Performance
FPI Score | 60/100 | 58/100 |
Health Tier | Moderate | Moderate |
Confidence | N/A | N/A |
Lending Trend | Declining | Declining |
SBA Lending
SBA Loans | 2,005 | 1,071 |
SBA Volume | – | – |
Default Rate | 7.2% | 4.3% |
Peer Tier | major | major |
Investment & Costs
Total Investment | $549K to $2.5M | $25K to $366K |
Franchise Fee | $45K | $35K |
Royalty Rate | 4% | 6% |
Ad Fund | 6% | 4.5% |
Liquid Capital | $400K | N/A |
Net Worth Required | $750K | $1.0M |
Financial Performance (Item 19)
Item 19 Status | Disclosed | Disclosed |
System Size & Operations
Total Units | 1,575 | 2,689 |
Franchised Units | 1,575 | 2,647 |
Company Owned | – | 42 |
Term Length | 20 yrs | 10 yrs |
Brand Information
Year Founded | 1940 | 1983 |
Franchising Since | 1944 | 2017 |
Years Franchising | 82 yrs | 9 yrs |
Headquarters | Bloomington, MN | Atlanta, GA |
Category | Limited-Service Restaurants | Limited-Service Restaurants |
Website | ||
FDD Year | 2025 | 2026 |
Which Is Better, Dairy Queen or Jimmy John's?
Lower upfront capital required
Jimmy John's
Dairy Queen: $549K starting · Jimmy John's: $25K starting
More SBA lender confidence
Dairy Queen
Dairy Queen: 2,005 SBA loans · Jimmy John's: 1,071 SBA loans
Lower SBA default rate
Jimmy John's
Dairy Queen: 7.2% · Jimmy John's: 4.3%
Larger system & brand presence
Jimmy John's
Dairy Queen: 1,575 units · Jimmy John's: 2,689 units
Lower ongoing royalty load
Dairy Queen
Dairy Queen: 4% · Jimmy John's: 6%
More lender financing options
Dairy Queen
Dairy Queen: 479 unique lenders · Jimmy John's: 232 unique lenders
Decision matrix uses publicly disclosed FDD and SBA loan data. Not a recommendation. Your best franchise depends on capital, market, operating capacity, and risk tolerance.
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About These Franchises
Dairy Queen vs Jimmy John's: Franchise Funding Comparison
Comparing Dairy Queen and Jimmy John's is about more than brand preference. It's about which franchise fits your financial profile and funding strategy. Investment ranges from $25K to $2.5M.
Dairy Queen has 2,005 SBA loans on record and Jimmy John's has 1,071. Those totals are cumulative history rather than a measure of current appetite. Recent lending activity is trending down for at least one of these brands, so current lender appetite has to be checked deal by deal rather than assumed from the totals.
SBA 7(a) loans are the most common franchise funding vehicle, offering up to $5M with as little as 10% down. PeerSense connects franchise buyers with the specific lenders who have approved loans for these brands, not generic referrals, but lenders with actual franchise lending track records.
Data sourced from SBA loan records, Franchise Disclosure Documents, and public filings. Updated regularly. Not financial advice, consult with a lending professional before making investment decisions.
Dairy Queen vs Jimmy John's, Frequently Asked Questions
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Which has a lower SBA default rate, Dairy Queen or Jimmy John's?
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Page Review
Reviewed by Edward L. Freeman, Founder and Managing Director, PeerSense
- PeerSense is a capital advisory firm that places commercial financing with direct capital sources; it does not lend, fund, or approve loans, and the capital source sets final terms.
- Edward L. Freeman founded PeerSense in January 2020.
- He is a Registered Franchise Consultant with Business Alliance, Inc., a credential issued in March 2022, and worked as a franchise consultant there from March 2022 to May 2023.
- His recorded experience includes a $22 million SBA construction loan, with about $16 million funded on the deal.
- In the 12 months through September 30, 2026, PeerSense tracked 912 publicly announced financings with a disclosed size of $361.32 billion. PeerSense Capital Data Report · Methodology page
Last reviewed LinkedIn profileAbout Edward Freeman