Do you love the authentic and delicious tasts 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.
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?
Also Read: How Much Does A Jimmy John’s Owner Make?
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.
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 Expenditure | Actual 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
| Franchise fee | $18,500 |
| Royalty fee | 6.5% |
| Marketing fee | 5.0% |
| Payback period* | 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
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 after deducting all the expenses and fees, Jersey Mike’s franchise owner makes $70,000-$1,000,000 on average.
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:
| Outlet Type | Year | Outlets at the Start of the Year | Outlets at the End of the Year | Net Change |
|---|---|---|---|---|
| Franchised | 2019 2020 2021 | 1411 1585 1796 | 1585 1796 2069 | +174 +211 +273 |
| Company-Owned | 2019 2020 2021 | 81 72 51 | 72 51 22 | -9 -21 -29 |
| Total Outlets | 2019 2020 2021 | 1492 1657 1847 | 1657 1847 2091 | +165 +190 +244 |
If we look at the data in the table, we can see that Jersey Mike’s Franchising units have been increasing at the rate of 220 units a year which is good for you.
However, a few company-owned outlets closed during this time period.
Overall, the total Jersey Mike’s units have increased from 1492 to 2091, and there has been a 41% growth of this company which is a good sign for those interested in investing in Jersey Mike’s.
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 |
| AVERGAGE PROFIT PERCENTAGE | 15% |
| AVERGAGE PROFIT PER YEAR | $100,000 |
| AVERAGE PAYBACK PERIOD | 5 years |
PAYBACK PERIOD = TOTAL INVESTMENT / PROFIT PER YEAR
= 465450/100000 = 4.65 = approximately 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 15%, the average profit per year is $100,000.
This means that the average payback period for the Jersey Mike’s franchise is approximately 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 $70,000-$100,000 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.
Also Check Out Jimmy John’s Franchise
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 marekting 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:
- Complete Online Application – 1 day
- Initial Phone Screen – 1 day
- Meet Criteria – 1 day
- Identify Area of Interest – 1 day
- Review Franchise Disclosure Doc – 1 week
- Complete Initial Interview – 1 week
- Conduct Due Diligence – 1-6 months
- Complete In-store Experience – 1 week
- Meet with an Executive Team Member – 1-3 week to set up
- Execute Franchise Agreements – 2 weeks
- Secure Real Estate – 3-6 months
- Begin Training & Construction – 12-14 weeks
Amit Gupta is the founder of DrFranchises – a digital marketing agency that helps brands rank better on Google Maps through local SEO strategies. Amit has over 11 years of experience in digital marketing, SEO, email marketing, and social media marketing. He’s also the owner of multiple franchises and has helped countless brands achieve success online. When he’s not working, Amit can be found playing with his dog.