Jimmy John's
Jimmy John's
Loan failure rate: 1.7%
Number of loans: 121
Number of failed loans: 2

John Liautaud's recipe for a good food franchise: fresh ingredients, fast delivery and an irreverent sense of humor.

At 19, he started Jimmy John's gourmet sandwich shop with used equipment. His monthly rent at the time was just $200 a month. To drum up business, Liautaud gave out sandwiches for free. That was 1983. Today, there are more than 1,000 Jimmy John's shops.

He won a following in the college crowd for his cheap prices, delivery and sense of humor. An example of the company's wit? It sells boxer shorts emblazoned with the company logo and the phrase ''free smells.''

Franchisees took out 122 SBA-backed loans between 2005 and 2010, and only two loans failed.

The company estimates that annual sales can reach $1.2 million and net profits average about $280,000.

The startup costs -- not including real estate -- are between $305,500 and $485,500. Franchisees also need $80,000 in cash and a net worth of about $300,000.

Source: Loan data is from the Small Business Administration, covering loans made from October 2005 through September 2010. Only those franchises for which the SBA backed 70 or more loans were included. A loan was counted as "failed" if the franchisor stopped repaying the loan and the SBA had to purchase -- or take over -- the loan.
Last updated June 16 2011: 12:24 PM ET

This list features the most popular franchises over the past decade -- and how well their owners have done at repaying startup loans backed by the SBA. More

Here are the 10 most affordable cities for doing business, according to PricewaterhouseCoopers and the Partnership for New York City. More

Market indexes are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer Morningstar: © 2014 Morningstar, Inc. All Rights Reserved. Disclaimer The Dow Jones IndexesSM are proprietary to and distributed by Dow Jones & Company, Inc. and have been licensed for use. All content of the Dow Jones IndexesSM © 2014 is proprietary to Dow Jones & Company, Inc. Chicago Mercantile Association. The market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. FactSet Research Systems Inc. 2014. All rights reserved. Most stock quote data provided by BATS.