Jersey Mike’s Franchise Owner Salary, Profit & Failure Rate 2024

Do you love the authentic and delicious tastes of Jersey Mike’s and are thinking about opening its franchise? We got you!

In this guide on how much does a Jersey Mike’S franchise owner make we have shared all the details regarding its profit, revenue and sales figure, investment needed, payback time, etc. So make sure you go through the end so that you do not miss out on anything.

How Much Does A Jersey Mike's Franchise Owner Make

About Jersey Mike’s

Jersey Mike’s is an American Sandwich chain, and it is known for serving top quality Submarine Sandwiches. The company was started In 1956 by Peter Cancro in Point Pleasant, New Jersey.

Originally the restaurant was started in a storefront location and was named Mike’s Subs.

During that time, there were very few hamburgers and restaurant chains, and no one was serving anything like their special “Submarine Sandwiches.”

This, along with their unparalleled quality of food, led them to become one of the fastest-growing fast-food restaurant chains in the world.

Shortly after this, Jersey Mike’s started offering franchising in 1987 to cater to their rising demand. Today, there are more than 2000 Jersey Mike’s locations worldwide, and it continues to thrive.

Jersey Mike’s does not need prior business experience and is willing to offer its franchise to anyone who is passionate and serious enough to get into this business.

The company provides training and support to franchisees in order to help them open Jersey Mike’s.

If you want to learn more about this franchise opportunity, then keep on reading!

Interested In Jersey Mike Franchise?

jersey-mikes-subs-store


How Much Does A Jersey Mike’s Franchise Owner Make?

The money that a Jersey Mike’s Franchise owner makes depends on several factors such as their location, operating expenses, advertisement, management, etc.

As per Careerbliss, after deducting all the expenses and fees, a Jersey Mike’s Franchise Owner makes $70,000-$100,000 annually on average, with the average being $83,923.

Please note that this is just a ballpark number and a Jersey Mike’s franchise owner might make more or less than this average amount.


Jersey Mike’s Investment Breakdown

Type of ExpenditureActual or Estimated Amounts
Initial Franchise Fee$18,500
Real Estate and Construction Fee$5,000
Architectural Fees$4,876 – $16,000
Rent/Lease CAM/Taxes/Lease
and Utility Security Deposits
$0 – $38,250
Leasehold Improvements$62,299 – $349,838
Initial Inventory$966 – $29,044
Equipment/Furniture/Small Wares$11,255 – $101,677
Insurance$2,000 – $12,000
Training$2,500 – $56,850
Exterior Signage$2,188 – $46,516
Grand Opening Advertising$12,500
Interior Branding/Graphics$2,689 – $16,000
POS System$85 – $13,305
Uniforms, Office Equipment and Supplies, TVs/Stereo
System/Security System
$2,260 – $25,361
POS System Connection to Private Network$2,000
Business Licences and Permits$25 – $15,750
Professional Fees (lawyer, accountant, etc.)$525 – $12,642
Additional Funds for 3 months$15,000
Total$144,668 – $786,233

((https://www.jerseymikes.com/franchise/investment))


Jersey Mike’s Other Requirements

Cost Or FeesAmount
Franchise fee$18,500
Royalty fee6.5%
Marketing fee5.0%
Payback period*5.5 years
Minimum net worth$300,000
Minimum liquid capital$100,000

How Much Does Jersey Mike’s Employee Earn?

According to ZipRecruiter, the average salary for Jersey Mike’s crew members ranges from $13.47/hour to $28.19/hour.

If we see this on a yearly basis, then the average lowest salary is of a support team member at $28,026 per year, and the highest average salary is of a General Manager at $58,625 per year.

Please note that this is an average number, and the salary for Jersey Mike’s employees may be more or less than this depending on their department, location, position, skills, etc.


Pros And Cons Of Jersey Mike Franchise

Pros Of Jersey Mike Franchise

  • Provides adequate training 
  • Fastest-growing chain
  • Provide premium quality products
  • Low franchise-fee
  • Offers third-party financing support
  • Provides exclusive territory protection

Cons Of Jersey Mike Franchise

  • Absentee ownership is not allowed
  • Compulsory to employ 10-15 employees
  • Pay $75 per hour plus expenses in case you go default
  • Late fee charges for not paying royalties on time

Jersey Mike’s Franchise Average Revenue & Profit

Jersey Mike's Franchise Average Revenue & Profit

Again, the average revenue and profit of Jersey Mike’s Franchise may vary from owner to owner based on their management skills, advertisement skills, customer service, etc.

Also, Jersey Mike’s has not provided any official representation regarding their franchise sales and revenue data.

However, according to our calculation, the sales figure of 2,100 Jersey Mike’s active franchised units in 2021 was $2.203 billion.

This means the Average Unit Volume per Jersey Mike’s franchised location is $1,049,047. And we assume a profit margin of 8% as per the industry standard, then we can calculate that a Jersey Mike’s franchise owner makes estimated net profits of $83,923 on average.

Financial OverviewPercentage of RevenueAmount ($)
Individual Franchise Annual Revenue100%1049047.00
Rent11.50%(120640.40)
Insurance5.75%(60320.20)
Salaries23.00%(241280.81)
Franchise Royalty Fees5.75%(60320.20)
Utilities2.30%(24128.08)
Cost of Goods Sold (COGS)28.75%(301601.01)
Labor (Variable)14.95%(156832.53)
Total (Expenses)92.00%(965123.24)
Net Profit8.00%83923.76

Note: The displayed expenses are estimates based on industry averages and standard costs. Actual expenses may vary due to factors like location, business size, and market conditions. We recommend conducting detailed research or consulting with a financial advisor for a tailored financial analysis.

If you are purchasing Jersey Mike’s franchise and want to know the exact revenue and profit figure, then you can request the same from them.


Jersey Mike’s Franchise Failure Rate

To calculate the Jersey Mike’s franchise failure rate, let us have a look at the following data:

Franchised Outlets:

YearOutlets at the Start of the YearOutlets at the End of the YearNet Change
201914111585+174
202015851796+211
202117962069+273

For the Franchised outlets:

  • In 2019, the growth rate was (174)/1411×100≈12.33%
  • In 2020, the growth rate was (211)/1585×100≈13.31%
  • In 2021, the growth rate was (273)/1796×100≈15.20%

Company-Owned Outlets:

YearOutlets at the Start of the YearOutlets at the End of the YearNet Change
20198172-9
20207251-21
20215122-29

For the Company-Owned outlets:

  • In 2019, the failure rate was (9)/81×100≈11.11%
  • In 2020, the failure rate was (21)/72×100≈29.16%
  • In 2021, the failure rate was (29)/51×100≈56.86%

Total Outlets:

YearOutlets at the Start of the YearOutlets at the End of the YearNet Change
201914921657+165
202016571847+190
202118472091+244

For Total outlets:

  • In 2019, the growth rate was (165)/1492×100≈11.05%
  • In 2020, the growth rate was (190)/1657×100≈11.46%
  • In 2021, the growth rate was (244)/1847×100≈13.21%

According to the above-mentioned data, we can see that the franchised outlets for Jersey Mike’s grew from 2019 to 2021, showing a growth rate between 12.33% and 15.20%.

On the other hand, for company-owned outlets, the failure rate of Jersey Mike’s was lying in the range between 11.11% and 56.86% for the same period of time.

Overall, when we combine the data of franchise and company-owned outlets, we can see that the Jersey Mike’s franchise has expanded in the years 2019-2021, showing a total growth rate between 11.05% and 13.21%.


Jersey Mike’s Franchise Payback Period

Let us have a look at the average profit, revenue and sales figure to calculate Jersey Mike’s franchise payback period

AVERAGE INVESTMENT$465,450
AVERAGE REVENUE PER OWNER$1,049,047
AVERAGE PROFIT PERCENTAGE8%
AVERAGE PROFIT PER YEAR$83,923
AVERAGE PAYBACK PERIOD5.5 years

PAYBACK PERIOD = TOTAL INVESTMENT / PROFIT PER YEAR
= 465450/83,923 = 5.5 = 5.5 Years based on median

The average investment for the Jersey Mike’s franchise is $465,450 and the average revenue per owner is $1,049,047.

With an average profit percentage of 8%, the average profit per year is $83,923.

This means that the average payback period for the Jersey Mike’s franchise is approximately 5.5 years, as the total investment of $465,450 would be recouped within this period.


Facts About Jersey Mike’s

  • Jersey Mike’s big sub called “Big Kahuna” is 24 inches long and is one of the longest subs available in any sandwich store.
  • Jersey Mike’s has been titled “one of the best places to work” by companies such as Glassdoor, Fortune, etc.
  • This restaurant chain runs a loyalty program by the name “Jersey Mike’s Shore Points,” which allows customers to collect reward points and redeem them for free subs and sandwiches.
  • Jersey Mike’s follows eco-friendly practices and use sustainable and recyclable materials, and even supports local farming.
  • Jersey Mike’s also does catering and offers Boxed Lunches and Platters for any events or meetings.
  • Jersey Mike’s runs a blog called “Mike’s World,” where you can find recipes, behind-the-scenes and other fun stories.
  • The restaurant runs something called the “Subs in a Tub” program, where customers can order food in reusable containers and get discounts on future purchases for returning the containers.
  • Jersey Mike’s is quite active in charity work and has raised millions for various social causes.

((https://www.amazingfactshome.com/fun-facts-about-jersey-mikes/))


What Is Jersey Mike’s Known For?

Jersey Mike’s is very popular for its Submarine sandwiches and lip-smacking subs

And what makes Jersey Mike’s stand out from its fellow competitors, such as Subway, Papa Murphy’s, etc., is their top quality products.

The restaurant prepares its authentic jersey bread daily on the premises and sources the best quality meat cuts and fine, aged cheese to offer the best taste.

Here are some of the best menu items at Jersey Mike’s:

  • Big Kahuna Cheese Steak
  • Chipotle Cheese Steak
  • Club Sub
  • BLT
  • Club Supreme
  • Tuna Fish
  • Ham and Provolone
  • Roast Beef and Provolone
  • Roast Beef and Provolone, etc.

((https://www.jerseymikes.com/about))


Is the Jersey Mike’s franchise Profitable?

Jersey Mike’s requires a high initial investment cost, and generally, a high investment is expected to bring in high profits too.

However, in the case of Jersey Mike’s, you are required to put in anywhere between $144,668 – $786,233, and in return, you can make a net profit of $83,923 annually easily on average.

So yes, Jersey Mike’s is definitely profitable. And also, in an average of five years, you can recover your initial investment amount.

So if the profit and investment figure seems good to you, then you can go for this franchise opportunity. 


Jersey Mike’s Franchise Earning Potential

Jersey Mike’s has been growing rapidly, and between 2020 and 2021, 246 new stores were also added.

If we talk about the sales figure, then according to Statista, Jersey Mike’s generated sales of 2.2 billion U.S. dollars in 2021, and since 2014 there has been continuous growth their sales figure.

Now sales are directly proportional to profits, and the more sales Jersey Mike’s franchise makes, the more it will increase the profit earning potential.

As of now, Jersey Mike’s franchise owner can expect to make a net profit between $70,000-$1,00,000 annually.

And the continuous growth in sales figures makes us believe that Jersey Mike’s franchise earning potential is high and in the coming years, one can expect to make even more net profit.


Wrap Up

After learning about the nitty gritty of Jersey Mike’s franchise, here’s what we think:

Jersey Mike’s is a high-investment business; it charges heft royalty and marketing fees.

However, the company has been growing rapidly, and there has been a constant increase in sales that also increases its profit-earning potential.

The qualification criteria of this franchise are not very stringent, and the company offers training and additional support too.

Overall, Jersey Mike’s definitely looks like a safe and future-proof investment owning to their taste and popularity. However, as of now, it generates an annual net profit of only $70,000-$100,000.

So now it is for you to decide if you like the numbers and want to invest in this business.


Frequently Asked Questions

How much royalty fee does Jersey Mike's charge?

Jersey Mike’s charges royalty fees of 6.5% along with a marketing fee of 5%.

What is Jersey Mike's investment cost?

Jersey Mike’s requires an initial investment amount ranging between $144,668 – $786,233 annually.

How long will it take befor I open my Jersey Mike's?

Here is what their selection process looks like and the number of days required for each thing:

  1. Complete Online Application – 1 day
  2. Initial Phone Screen1 day
  3. Meet Criteria – 1 day
  4. Identify Area of Interest – 1 day
  5. Review Franchise Disclosure Doc – 1 week
  6. Complete Initial Interview – 1 week
  7. Conduct Due Diligence – 1-6 months
  8. Complete In-store Experience – 1 week
  9. Meet with an Executive Team Member – 1-3 week to set up
  10. Execute Franchise Agreements – 2 weeks
  11. Secure Real Estate – 3-6 months
  12. Begin Training & Construction – 12-14 weeks

Who founded Jersey Mike's?

Peter Cancro is the founder and Chief Executive Officer of Jersey Mike’s Franchise Systems Inc.

Where is Jersey Mike's headquartered?

Jersey Mike’s is an American Submarine sandwich chain which is based in Manasquan, New Jersey.

How many locations does Jersey Mike's has?

There are currently 2617 locations in the United States. The state with the most locations is California, which has around 357 locations of Jersey Mike’s.

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