Franchises are one of the most lucrative business opportunities that will provide you with a high return on investment in a short time.
When you franchise, you get to use an already proven system with a brand name that most people know.
This makes it easier for franchisees to succeed because you don’t need to take the risk of creating a new brand from scratch.
If you are thinking about owning a franchise, you probably heard of Jersey Mike’s Subs as one of the popular fast-food sandwich stores.
They have been in operation for decades now with a solid and proven track record.
We will explore Jersey Mike’s Subs franchise, its costs, details, and any other thing that you should know before owning one.
About Jersey Mike’s Subs
Jersey Mike’s Subs is a fast-casual sandwich chain that specializes in submarine sandwiches, commonly known as subs.
The company prides itself on using fresh ingredients and preparing each sandwich to order.
The menu features a variety of cold and hot subs, as well as wraps, salads, and sides. Jersey Mike’s Subs have been in operation since 1956 and was first founded as Mike’s Subs.
With about 2,400 stores across different states, Jersey Mike’s Subs is one of the big and popular fast sandwich chains.
They are popular not only for their food but also for their involvement in the communities they serve. One example is the catering services they give to certain events.
Also Read: How Much Does Subway Franchise Owner Make?
Jersey Mike’s Subs History
Jersey Mike’s Subs was founded in 1956 by Mike with the original name Mike’s Subs in New Jersey. Mike’s Subs was offering something very unique at the time, a submarine sandwich.
It attracted a lot of attention and helped with the success. It wasn’t until 1971 that Peter Cancro, a 17-year-old who worked at the shop, bought the business when Mike wanted to sell.
They shortly opened more stores after the acquisition, and in 1987, he wanted to explore the opportunity to franchise and started doing it.
He also changed the name to Jersey Mike’s Subs to keep the name of the place where they were born.
Today, they have over 2,000 locations across the United States, and they keep expanding.
Jersey Mike’s Subs Franchise Model
| Initial Investment | $194,035-$954,611 |
| Franchise | YES |
| Franchising Since | 1987 |
| Franchise-Fee | $18,500 |
| Royalty-Fee | 6.5% |
| Liquidity | $100,000 |
| Estimated Outlets | 2,449 |
How Much Does It Cost To Open A Jersey Mike’s Subs Franchise?
The initial investment to open a Jersey Mike’s Subs franchise ranges from $194,035 to $954,611.
This includes the franchise fee, which is $18,500, and other costs, such as equipment, signage, and inventory.
The costs could be even higher than the expected ones depending on the size of your branch, the number of employees, and the equipment you are going to buy.
According to the FDD of Jersey Mike’s Subs, these numbers are an estimate and what their other franchisees have spent so far.
You ideally should have a higher amount of cash ready to spend in case you go out of the expected amount.
The highest costs are improvements to the property, which could be as high as $481,266, and the equipment could be $123,000 in total.
Jersey Mike’s Subs Franchise Requirements
There are two types of requirements Jersey Mike’s Subs expects from potential franchisees. The first one is the financial requirement.
You need to have a net worth of $300,000 and $100,000 in cash which is liquidity. Once you complete these, then you need to move on to the personal requirements.
There are personal qualifications you must meet to become a Jersey Mike’s Subs franchisee.
You must have a previous restaurant or retail management experience, as well as strong leadership and communication skills.
You should also be willing to commit to the hands-on management of your franchise and follow Jersey Mike’s Subs’ standards for customer service, food quality, and cleanliness.
Jersey Mike’s Subs Profit & Revenue
The profit and revenue numbers for the company are not publicly available because the company is privately owned.
That’s why we don’t have concrete numbers as to how much the company makes in a given year.
However, we do know the average revenue numbers for a Jersey Mike’s Subs franchise store.
The potential for profit and revenue by store varies depending on a number of factors, including location and competition.
That’s why it’s hard to give an average number, but according to the statistics, the average revenue for a Jersey Mike’s Subs franchise is about $800,000 per year. However, this is not guaranteed and could be lower or even higher.
Jersey Mike’s Subs Franchise Training and Support
Jersey Mike’s Subs is known to provide extensive training and support for their franchisees, and you receive them once you get approved.
The training part includes a 5-day classroom training program at Jersey Mike’s Subs. They teach you the company’s systems and procedures.
Then, you must get on-the-job training for 180 hours at a restaurant designated by the franchisor.
The support includes proprietary software, marketing, and other necessary things to keep the daily operations going.
Jersey Mike’s Subs also send a representative to oversee the operations for three days in the first month of operation.
Depending on the situation, they might provide extra training after this visit by the representative.
Jersey Mike’s Subs Franchise Terms of Agreement and Renewal
When you sign the FDD with Jersey Mike’s Subs, your agreement will have a set term for the ending of the rights to use the name.
The initial term of a Jersey Mike’s Subs franchise agreement is 10 years. This agreement has the option to renew for additional 10-year terms.
To be able to renew your agreement, you have to meet the criteria of Jersey Mike’s Subs.
If you do not meet these requirements, they have the right to deny the renewal of the agreement. They can also deny it if they weren’t satisfied with you during your initial term.
Jersey Mike’s Subs Franchise Obligations and Restrictions
When you become a Jersey Mike’s Subs franchisee, you must follow many obligations and restrictions.
These help the brand to keep their quality and for you to deliver the same quality just like in all their stores.
Jersey Mike’s Subs has its own operational and marketing guidelines, and you will be obligated to follow them, like purchasing supplies and ingredients from approved vendors.
You also must keep the restaurant under constant supervision by the manager or a competent employee who is on-premises all the time.
You will be restricted from selling products that are not approved by Jersey Mike’s Subs or opening additional franchises without permission.
In addition, you can’t use the premises for any other purpose than to operate the franchise.
Also Check Out Jersey Mike’s Subs Franchise
Jersey Mike’s Subs Franchise Financial Assistance
In almost all cases, they do not offer direct or indirect financial assistance to prospective franchisees.
However, they are part of the Coach Rod Smith Program, and they might provide loans to the participants to help with the development of the restaurants. The exact amount of loan you can get varies by location.
Additionally, the company offers discounts on the franchise fee for military veterans and encourages franchisees to explore financing options such as Small Business Administration loans.
This means that even if you are not a part of the Rod Smith Program, they still encourage you to explore other options and help you in the process.
Jersey Mike’s Subs Comparison
| Company | Franchise Fee | Royalty Fee | Initial Investment |
|---|---|---|---|
| Jimmy John’s | $30,000-$35,000 | 6% | $355,900-$671,400 |
| Subway | $15,000 | 8% | $182,550-$506,900 |
| Jersey Mike’s Subs | $18,500 | 6.5% | $194,035-$954,611 |
Conclusion
It is no doubt that Jersey Mike’s Subs is a very popular franchise brand with high brand awareness.
Owning a franchise branch could be very lucrative if you can operate it well.
However, there are certain requirements you need to meet and obligations and restrictions you need to follow.
If you think you can cover all these needs, you should definitely consider applying to Jersey Mike’s Subs franchise.
Their popularity could help you achieve success in the short run and expand even further.
FAQ
Who is the CEO of Jersey Mike’s Subs?
Peter Cancro is the current CEO of Jersey Mike’s Subs. He has been running the company since he bought it in 1971.
Is Jersey Mike’s Subs the best franchise?
There are many different franchise businesses out there. Whether in the same industry or not, the choices are unlimited.
That’s why saying Jersey Mike’s Subs is the best franchise is hard because every situation is different, and there might be better suitable franchises for some. For some, Jersey Mike’s Subs could be a perfect fit.
Can you fail with a Jersey Mike’s Subs franchise?
Yes. Just like running any other business, if you can’t operate the store well, you might fail.
The chance of failing is lower than running your own business, but it is a possibility.
Sources
https://www.jerseymikes.com/franchise/investment
https://www.jerseymikes.com/history
https://www.jerseymikes.com/about
https://www.subway.com/en-LI/OwnAFranchise/FranchisingFAQs#a3
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.