Dairy Queen vs Jimmy John's
Dairy Queen vs Jimmy John's: Dairy Queen costs $549K–$2.5M to open; Jimmy John's costs $25K–$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, lower default rate, and lower royalty load is the safer financing bet — see the comparison below.
Dairy Queen vs Jimmy John's — Capital, Scale & Lending Analysis
Data-driven differentiation pulled from 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 historical 7(a) approvals versus 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. Geographically, Dairy Queen concentrates in OH (121 SBA-funded units) while Jimmy John's leads in IL (92) — pick the brand whose strongest state matches yours for warmest 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 historical loss profile 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 – $2.5M | $25K – $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 | Not 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 historical 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.
Both brands have active SBA lending histories — Dairy Queen with 2,005 SBA loans and Jimmy John's with 1,071. This means proven lender acceptance and established underwriting paths for franchise buyers.
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.