Jersey Mike's Franchise Costs, Fees & Owner Salary (2023)

INVESTMENT

$214,000

-

$1,353,000

OPERATING PROFIT

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Emily

Updated

February 10, 2024

Is

Jersey Mike's

a franchise?

Yes,
Jersey Mike's
is a franchise and
currently
accepts
franchise
applications

Jersey Mike's Subs, a renowned name in the submarine sandwich franchise sector, embarked on its journey in 1956 and commenced franchising in 1987. With its headquarters nestled in Manasquan, New Jersey, the franchise has flourished and enjoys a robust presence in the fast-food industry.

The brand is celebrated for its commitment to quality, offering customers freshly prepared submarine-type sandwiches alongside a variety of other sandwiches and related food products and beverages, ensuring a unique dining experience that stands out in a competitive market. The essence of Jersey Mike's franchise opportunity lies in its straightforward business model, emphasizing the provision of high-quality sub sandwiches made with fresh ingredients, prepared in full view of the customer, and served with genuine energy and enthusiasm.

This customer-centric approach is complemented by the brand's culture of giving back to the community, fostering a strong bond with the localities it serves. Jersey Mike's also offers a balanced lifestyle for its franchisees, providing them with the capacity to support community causes while maintaining a fulfilling family life outside the restaurant.

Jersey Mike's Subs differentiates itself through its unique "Mike's Way" of preparing sandwiches with onions, lettuce, tomatoes, oil, vinegar, and spices, alongside its special focus on giving and making a difference in people's lives, which is deeply ingrained in the company's mission. This philosophy not only enhances customer loyalty but also strengthens the franchise's community ties.

How many

Jersey Mike's

franchises

are there?

In 2022, there were
2250
outlets in the United States, of which
2226
are franchises, and
24
are corporate-owned.

What are the

Jersey Mike's

franchise

fees?

Initial franchise fee

$18,500

Royalty fee

6.5%

Advertising fee

5.0%

Initial Franchise Fee ($18,500)

The initial franchise fee for a Jersey Mike's franchise is $18,500. This fee is payable upon signing the franchise agreement. However, if you are an existing franchisee of Jersey Mike's and apply for a new franchise without an Area Development Agreement, you may be eligible for a reduced initial franchise fee of $8,500, provided you agree to open the new restaurant by December 31, 2024.

Real Estate and Construction Fee ($5,000)

Upon signing a lease for your restaurant, a fee of $5,000 is required for the company's assistance with the real estate and construction processes.

Grand Opening Advertising ($12,500)

A fee of $12,500 is required for the grand opening advertising program to promote the opening of the franchised restaurant. This fee is due in full on the date the franchisee signs a lease for the premises.

Continuing Royalty Fees (6.5% of Gross Receipts)

The continuing royalty fee is 6.5% of the gross receipts for a standard franchise agreement, payable weekly via wire transfer.

Corporate Advertising and Development Fund (1.0% of Gross Receipts)

Franchisees are required to contribute 1.0% of gross receipts to the Corporate Advertising and Development Fund.

How much does

it cost

to start a

Jersey Mike's

franchise?

It costs between
$214,000
and
$1,353,000
to start a
Jersey Mike's
franchise.

The total estimated initial investment ranges from $214,449 to $1,352,580. Below is a detailed table of the estimated costs associated with starting a Jersey Mike's franchise:

Type of Expenditure Amounts
Initial Franchise Fee $18,500
Real Estate and Construction Fee $5,000
Rent/Lease CAM/Taxes/Lease and Utility Security Deposits $0 - $67,709
Architectural Fees $2,389 - $28,796
Leasehold Improvements $110,000 - $762,064
Equipment/Furniture/Small Wares $28,961 - $152,550
Initial Inventory $4,200 - $27,465
Insurance $1,000 - $13,829
Training $2,000 - $86,400
Grand Opening Advertising $12,500
Exterior Signage $2,370 - $53,100
Interior Branding/Graphics $3,074 - $14,684
Uniforms, Office Equipment and Supplies, TVs/Stereo System/Security System $3,258 - $38,531
POS System $2,085 - $17,452
POS System Connection to Private Network $3,000
Professional fees (lawyer, accountant, etc.) $800 - $18,000
Business Licenses and Permits $312 - $18,000
Additional Funds for 3 months $15,000
Total $214,449 - $1,352,580

Note: The table above provides a snapshot of the main costs associated with starting the most common franchise format (as disclosed in the Item 7 of the Franchise Disclosure Document). For a complete overview of all the expenses involved with the various formats offered by the franchisor, please consult the Franchise Disclosure Document.

Does

Jersey Mike's

provide

training

to its

franchisees?

Yes,
Jersey Mike's
provides training to its franchisees.

Jersey Mike's has a thorough training program for its franchisees to ensure they are well-equipped to operate their franchises successfully.

The training program is divided into 3 phases, and the franchisee's Controlling Principal or designated manager, assistant manager, and shift supervisor are required to attend and successfully complete these phases before opening for business.

The initial training program covers both classroom and hands-on in-store training in the material aspects of operating a Jersey Mike's Restaurant.

All expenses incurred by the franchisee and its employees in attending this program, including travel, room, and board expenses, are the responsibility of the franchisee.

Does

Jersey Mike's

provides

territory

protection?

Franchisees are granted the right to operate a Jersey Mike's Restaurant at a specific location, termed the "Designated Area," as described in the Franchise Agreement. The boundaries of this Designated Area are defined by various factors such as zip code boundaries, county boundaries, highways, physical landforms, city or municipality boundaries, and other factors deemed appropriate by the company.

However, franchisees will not receive any territorial protection in their Designated Territory. Furthermore, the company's approval of a site for a Restaurant is based on then-current factors, including site demographics, proximity to other businesses, neighborhood character, and other characteristics and criteria that may periodically change.

Can a

Jersey Mike's

franchise

be run as

a passive

investment?

Jersey Mike's franchised restaurants must at all times be under the direct on-premises supervision of either the franchisee's Controlling Principal or a competent employee acting as a full-time manager or shift supervisor.

This designated individual must have satisfactorily completed the company's initial training program and must be approved in writing by the company.

If the franchisee is a business entity, the Controlling Principal or designated manager is required to attend and satisfactorily complete the franchisor’s initial training program.

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