Jersey Mike's franchise

Hassle-free business loans to start your Jersey Mike's franchise.

Jersey Mike’s competes in the fast-growing ‘fast and casual’ dining segment, operating sandwich shops and restaurants that sell a range of quick meals and drinks. They are the fourth largest sandwich chain in the US, behind Subway, Panera Bread and Arby’s.

Jersey Mike's business details

Jersey Mike’s have been in business since 1956 and have offered franchise opportunities since 1987. The company is headquartered in Manasquan, New Jersey. Offering an old-style, simplified menu of made-to-order sub sandwiches and other related foods and drinks, the brand treads a fine line between high quality and high volume. Jersey Mike’s sandwich shops sell an average of 1,200,000 subs per shop per year. That adds up to a lot of bread in more ways than one. Currently, the company has more than 2,700 locations in the US, covering over 1,300 cities and 50 states and territories.

Jersey Mike’s at a glance:

US stores: Approximately 2700
Required Investor net worth: $300,000
Required investor liquid cash: $100,000
Min. investment: $214,000
Max. investment: $1, 352,000
Standard franchise term: 10 years

Can I start a Jersey Mike's franchise?

You can if you have at least $100k in liquid cash, a net worth of $300k and you can meet set-up costs that can be as much as $1.3 million. Jersey Mike’s says that you don’t need previous hospitality experience to own one of their stores, (although it appears that many of their current franchise owners do). Instead, the company says they want franchisees who care about their local community and recognize the value of a proven system. Franchisees should be confident, competitive, outgoing and have a positive attitude about business and life. If this sounds like you, then a business selling sub sandwiches could be on your menu.

How much does a Jersey Mike's franchise cost?

Sandwiches may be low-cost, but getting a franchised sandwich restaurant off the ground can be anything but. Starting a Jersey Mike’s franchise will cost you $214,000 to $1,352,000 depending on if you choose a traditional or non-traditional location and the size of your restaurant. This ranks as moderate to very high.

The initial franchise fee is $18,500. Military veterans may qualify for a discount off this cost.

After opening, you are required to pay an array of ongoing fees and charges. They include:

Royalty fee: 6.5% of gross revenues
Grand opening advertising: $12,500, or $5,000 for transfers or relocations
Real estate construction fee: $5,000
Corporate advertising fund: 1% gross revenues
National media fund: 4% gross revenues
Architect and general contractor approval: $5,000 each
Secure credit card processing network: $31.85 per month
Software fee: $395 per month
Gift card program: $9.50 per month
Online ordering fee: $0.29 per transaction plus 3.74% of each sale
Relocation fee: $5,000
Transfer fee: $5,000

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Estimated key costs to open a Jersey Mike’s franchise:

Key Costs Guide	Low	High
Franchise fee	$18,500	$18,500
Real estate and construction fee	$5,000	$5,000
Rent/lease including security deposits	$0	$67,000
Construction costs/leasehold improvements	$110,000	$762,000
Architect’s fees	$2,300	$28,700
Equipment, furniture, smallwares	$28,900	$152,500
Initial inventory	$4,200	$27,400
Insurance	$1,000	$14,000
Training	$2,000	$42,600
Grand opening advertising	$12,500	$12,500
Signage	$2,300	$53,100
Interior branding/graphics	$3,000	$14,600
Uniforms, technology, TVs, security system, office supplies	$3,200	$38,500
POS system connected to private network	$3,000	$3,000
Professional fees	$800	$18,000
Business licenses and permits	$312	$18,000
Additional costs – first three months	$15,000	$15,000

Are Jersey Mike's franchises profitable?

Yes. Jersey Mike’s sandwich shops have average annual sales of $1,113,000 against an average start-up investment of $784,000. Profit margins in the US fast food business can vary according to style and products sold, but 10% to 15% is typical. With a 15% margin, your average Jersey Mike’s would deliver net profits of $166,000 per year, which ranks as very good and would pay back the typical investment in 4 to 5 years.

What is the failure rate for a Jersey Mike’s franchise?

Very low. The failure rate for a Jersey Mike’s franchise is 1% in the first year, rising to 2% by year three.

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Are Ace Hardware franchises profitable?

Many variables can impact the performance of any store. Your site location, opening hours, range of products, marketing, and other important factors will determine if your Ace Hardware store makes money. However, according to external research, the average Ace location has annual turnover of more than $3,000,000 and your initial investment should be returned within the franchise term.

What is the failure rate for an Ace Hardware franchise?

Very low. According to Ace Hardware, new ground-up stores have a nearly 99% success rate, and the average store yields sales of $138 per square foot in their first year.

What are the franchise territory policies for Jersey Mike's?

Franchisees may operate the franchised restaurant only at the location specified in the franchise agreement. As long as franchisees are not in default of their agreement, the company promises not to operate another company-owned or franchised Jersey Mike’s restaurant within the franchisee’s designated area. However, the company reserves the right to place company-owned or franchised restaurants at ‘non-traditional venues’, such as airports, casinos, arenas, hospitals, hotels, malls, military installations, national parks, schools, stadiums and theme parks, within the designated area. The designated area typically comprises a 0.5 to 1 mile radius from the front door of the franchised restaurant. Franchisees do not receive an exclusive territory.

What franchise resources does Jersey Mike's offer?

Jersey Mike’s support for franchisees includes:

Training: Jersey Mike’s trains franchisees or their designated manager at the company’s training center in Point Pleasant, New Jersey. Trainees must complete and pass a series of phased training programs. Additionally, trainees are required to attend and participate in the grand opening of another restaurant. This consists of a mix of on-the-job, classroom and simulated training. To facilitate the opening of their Jersey Mike’s restaurant, the franchisor sends one of its representatives to the restaurant for a minimum of three calendar days during the first month of operation. Jersey Mike’s may also provide refresher training programs to be conducted at company headquarters or at another location designated by the franchisor.
Marketing support: Jersey Mike’s provides promotional and other marketing support for their franchisees.
Third-party financing: Jersey Mike’s provides limited financial support for investors seeking franchise funding. Alternatively you may be able to obtain more economical and flexible funding solutions from the many independent funders who provide business loans to franchise operators.

Why should you start a Jersey Mike's franchise?

If you can get past the high start-up costs, there’s not much to dislike about owning a Jersey Mike’s restaurant: Almost zero failure rate, good profits and a fast repayment of investment should be exactly what you’re looking for. Add in the size of the US market for sandwiches and related foods – $45.2 billion in 2022 – and market growth of 1.8% year on year, and this franchise opportunity looks even better. The only downside is the need for active involvement in the business. Jersey Mike’s expects their franchisees to play a hands-on role in the running of the restaurant. This is not a franchise for passive investment.

What is the process for starting a Jersey Mike's franchise?

It begins with an application. Start the process here.

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Starting a new franchise can be an exciting opportunity, but it’s easy to get lost in a maze of business loan applications that can make funding your new sandwich and snacks business like too much hard work. Instead, cut out the hassle and cut to the chase. Swoop has the best lenders for the best franchises across the US. Just tell us what you need and leave the rest to us.

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Written by

Chris Godfrey

Chris is a freelance copywriter and content creator. He has been active in the marketing, advertising, and publishing industries for more than twenty-five years. Writing for Wells Fargo Bank, Visa, Experian, Ebay, Flywire, insurers and pension funds, his words have appeared online and in print to inform, entertain and explain the complex world of US consumer and business finance.

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At Swoop we want to make it easy for SMEs to understand the sometimes overwhelming world of business finance and insurance. Our goal is simple – to distill complex topics, unravel jargon, offer transparent and impartial information, and empower businesses to make smart financial decisions with confidence.

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Swoop requires writers to use primary sources to support their work. These include white papers, government data, original reporting, and interviews with industry experts. We also reference original research from other reputable publishers where appropriate.

Franchise funding: https://swoopfunding.com/us/blog/funding-your-franchise-a-guide-for-franchisees/

Profitability: https://sharpsheets.io/blog/jersey-mikes-franchise-costs-profits/

Jersey Mike’s franchise application: https://www.jerseymikes.com/franchise/get-started

Jersey Mike’s: https://www.jerseymikes.com/culture/history

Volume: https://www.jerseymikes.com/franchise

Failure rate: https://www.vettedbiz.com/franchises/jersey-mikes/

Set-up costs: https://www.franchisedirect.com/jersey-mikes-franchise-costs-fees

US market: https://www.ibisworld.com/united-states/market-research-reports/sandwich-sub-restaurants-industry/

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