Franchise Deep Dive: Jersey Mike’s Franchise Costs, Fees, Profit and Data

LAST UPDATED: January 20th

FRANCHISE WEBSITE: https://www.jerseymikes.com/franchise

NUMBER OF LOCATIONS: over 2,300

REPORTED COST TO GET IN: $194,035 to $954,611

REPORTED ROI (Item 19): $1.17 million average

Jersey Mike’s has had rapid growth over the past several years and is on its way to becoming an American fast-casual staple. This sub sandwich franchise has gained a large following and been recognized as one of the fastest growing franchises by QSR Magazine. As a franchise opportunity, Jersey Mike’s competes in a crowded industry. So when looking at business opportunities in this industry, is franchising with Jersey Mike’s the right choice?

How Many Jersey Mike’s Are There?

As of December 31, 2021, Jersey Mike’s had 22 company-operated locations and 2,069 franchisee-owned locations. According to Entrepreneur Magazine, that number has increased to over 2,400 total locations.

The fast-casual sub sandwich concept opened in 1956 but didn’t start offering franchises until 1986. In 2021, the brand totaled 1,796 franchisee-owned locations and ended the year by adding 273 more to the map. According to Jersey Mike’s 2022 Franchise Disclosure Agreement, there were 60 transfers from one franchisee to a new one. The brand also discloses that there were 598 franchise agreements signed in 2021, which were not open at the time of the document’s publishing.

What Is Jersey Mike’s Business Model?

Jersey Mike’s Business model requires franchisees to purchase specific brands and products for restaurant use, including types of food and beverage preparation, dispensing, storage and display equipment, cash registers, fixtures, interior and exterior signs, and decorating accessories. 

The brand’s website also lists real estate requirements for franchises:

• Size: 1200–1800 square feet
• Frontage: 20’ minimum
• Parking: 12 spots per 1000 square feet, 15 minimum
• Signage: Jersey Mike’s standard sign to max size per code. For end cap locations, two signs preferred
• Outside Seating: Outside seating strongly preferred, shared space is acceptable
• Store Location: Shared pads or outparcels and end-caps preferred; in-line with good visibility from the street is acceptable
• Accessibility: Full turn access from both main and side arteries
• Co-tenancy: Dominant grocer in market, office supply and convenience users, full-price retailers, other quick casual and high-end QSR users a plus

How Much Can Jersey Mike’s Franchise Owners Make?

The Jersey Mike’s Franchise Disclosure Document did not include profits earned by the brand’s franchisees. However, according to Visa Franchise, franchise revenues in 2020 were $120.8 million. The 2020 estimated total franchise sales were $1.85 billion, and the estimated average franchise sales were $1.17 million. 

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

The estimated initial investment to begin the operation of a Jersey Mike’s location ranges from $194,035 to $954,611. The following costs are included in the initial investment:

• Initial Franchise Fee: $18,500
• Real Estate and Construction Fee: $5,000
• Rent / Lease CAM / Taxes / Lease and Utility Security Deposits: $0–$46,215
• Architectural Fees: $750–$29,897
• Leasehold Improvements: $75,000–$481,266
• Equipment / Furniture / Small Wares: $44,963–$123,233
• Initial Inventory: $6,000–$30,000
• Insurance: $1,863–$13,563
• Training: $1,640–$53,000
• Grand Opening Advertising: $12,500
• Exterior Signage: $2,922–$27,300
• Interior Branding / Graphics: $2,637–$15,000
• Uniforms, Office Equipment and Supplies, TVs / Stereo System / Security System: $900–$39,425
• POS System: $2,585–$17,403
• POS System Connection to Private Network: $3,000
• Professional Fees (lawyer, accountant, etc.): $475–$7,598
• Business Licenses and Permits: $300–$16,711
• Additional Funds for Three Months: $15,000

Ongoing costs and fees include:

• Continuing Services and Royalty Fees: 6.5% of gross receipts for a standards franchise agreement
• Corporate Advertising: Currently 1% of gross receipts
• National Media Fund: 4% of gross receipts

What Is the Franchise Fee for Jersey Mike’s?

The Jersey Mike Franchise Fee, according to the brand’s 2022 FDD, is $18,500. This is the upfront fee that must be paid upon signing. 

Who Is the Leadership of Jersey Mike’s?

• Peter Cancro—CEO / Founder
• Mike Manso—COO
• Walter Tombs—CFO
• Hoyt Jones—President
• Richard Hope—CMO

What Helpful Articles Can I Read to Learn More About Jersey Mike’s?

• Jersey Mike’s FDD
• Entrepreneur Magazine—Jersey Mike’s
• QSR—Culture Fuels Jersey Mike’s Rise to the Sandwich Elite
• QSR—The 25 Fastest-Growing Fast-Food Chains in America