Is
Jersey Mike's
a franchise?
How many
Jersey Mike's
franchises
are there?
What are the
Jersey Mike's
franchise
fees?
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.
Note: The fees presented here can be found in the Item 5 of the Franchise Disclosure Document. For a complete list of all the fees borne by the franchisee, please consult the Franchise Disclosure Document.
How much does
it cost
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:
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?
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.
