How Much Does it Cost to Open a Jersey Mike’s Franchise?

Fast-casual sandwich franchise Jersey Mike's has grown well beyond New Jersey in recent years. The beloved chain has won over a loyal following and has even been named one of the fastest-growing franchises by QSR Magazine, making it a popular choice for prospective franchise owners. 

But how much does it cost? Let’s find out.  

The Investment

The total investment required to open a Jersey Mike’s franchise ranges from $144,668 to $786,233. This starting range is notably low compared to other food franchises. 

Here's a detailed breakdown of the associated expenses:

• Initial Franchise Fee: $18,500 (Lump Sum)
• Real Estate and Construction Fee: $5,000 (Lump Sum)
• Rent/Lease CAM/Taxes/Lease and Utility Security Deposits: $0 - $38,250 (Monthly)
• Architectural Fees: $4,876 - $16,000 (As Incurred)
• Leasehold Improvements: $62,299 - $349,838 (As Arranged)
• Equipment/Furniture/Small Wares: $11,255 - $101,677 (As Arranged)
• Initial Inventory: $966 – $29,044 (As Arranged)
• Insurance: $2,000 - $12,000 (As Arranged)
• Training: $2,500 - $56,850 (As Incurred)
• Grand Opening Advertising: $12,500 (Lump Sum)
• Exterior Signage: $2,188 – $46,516 (As Arranged)
• Interior Branding/Graphics: $2,689 - $16,000 (As Incurred)
• Uniforms, Office Equipment, Supplies, TVs/Stereo System/Security System: $2,260 - $25,361 (As Incurred)
• POS System: $85 - $13,305 (As Incurred)
• Professional Fees (lawyer, accountant, etc.): $525 - $12,642 (As Incurred)
• Business Licenses and Permits: $25 - $15,750 (As Incurred)
• Additional Funds for 3 months: $15,000 (As Incurred)

Who is Jersey Mike’s Ideal Owner? 

Of course, opening a Jersey Mike’s is about more than just having the right financial requirements. The ideal operator profile is wide ranging, including everyone from experienced restaurateurs, ex-Fortune 500 executives, those successful with other fast-casual or QSR concepts, former customers, and employees. Successful franchisees share common traits such as passion for the Jersey Mike's concept, community involvement, and recognition of the value of a proven system. They’re described as confident, competitive, outgoing, and positive individuals with a strong attitude toward business and life. While many have restaurant experience, other less tangible traits are also considered critical to success.

The brand takes a firm stance on sticking to this ideal operator profile, for several reasons. 

“Dealing with the public, serving food, handling peak traffic times and being a welcoming host can be exciting and enjoyable to some while harrowing and arduous to others,” the brand explains on its franchising website. “That’s why we want only the right candidates to help us grow our brand. It all happens on the store level at Jersey Mike’s, and our experience tells us that the right operator is absolutely imperative to running a successful and profitable business.” 

The Process and Training

For those who fit the bill, the Jersey Mike's franchise process involves several steps:

• Complete Online Application: 1 day
• Initial Phone Screen: 1 day
• Meet Criteria: 1 day
• Identify Area of Interest: 1 day
• Review Franchise Disclosure Document (FDD): 1 week
• Complete Initial Interview: 1 week
• Conduct Due Diligence: 1-6 months (depends on the candidate's efforts)
• Complete In-store Experience: 1 week
• Meet with an Executive Team Member: 1-3 weeks to set up
• Execute Franchise Agreements: 2 weeks
• Secure Real Estate: 3-6 months (depending upon real estate availability)
• Begin Training & Construction: 12-14 weeks

Jersey Mike's has a comprehensive training program lasting 8-10 weeks, combining classroom training and in-store experience to ensure operational excellence. The commitment to ongoing training, including Back to Basics and Train the Trainer programs, aims to maintain high standards.

How Much Can I Make? 

Jersey Mike’s does not publish franchise earnings directly. However, a review of the brand’s 2023 FDD by finance website SharpSheets found that the average Jersey Mike’s franchise makes $1,113,000 in sales per year (Average Unit Volume). The website estimates that the average Jersey Mike’s franchise makes $161,000 in profits per year, corresponding to a 15% EBITDA margin.

While the financial investment is significant, the potential for success is reflected in the brand's dedication to maintaining high standards. For those with the right mix of passion, business acumen, and a connection to the community, opening a Jersey Mike’s franchise could be a fulfilling and successful endeavor.

To learn more, check out these related articles:

• How Jersey Mike's Was Built to Grow 
• Jersey Mike's Franchise Costs, Fees, Profit and Data