Jersey Mike’s is one of the biggest pizza chains in the country. The sandwich franchise has nearly 1,800 around the U.S., with thousands of employees. If you are interested in franchising and want to learn how to get involved in the Jersey Mike’s franchise with a location of your own, here is everything you need to know.
A Brief History of Jersey Mike’s Subs
The current CEO of Jersey Mike’s, Peter Cancro started working at Mike’s Subs in 1971 at the age of 14. Upon graduating high school at the age of 17, he bought the storefront and became the owner of Mike Subs. In 1987 he began franchising the business. Since then he has expanded the Jersey Mike’s Franchise to 1800+ locations across the United States.
Currently, there are 1796 franchise stores and 51 company-owned locations.
How much is a Jersey Mike’s Franchise?
The initial Jersey Mike’s Franchise Fee is $18,500. This is the upfront fee that must be paid when opening a Jersey Mike’s franchise. However, the estimated total investment necessary to begin the operation of a Jersey Mike’s Franchise ranges from $144,668 to $786,233.
Here is a breakdown of the costs of opening a Jersey Mike’s franchise, referenced from the company itself.
|Type of Expenditure||Actual or Estimated Amounts||Method of Payment||When Due||To Whom Payment Is To Be Made|
|Initial Franchise Fee||$18,500||Lump Sum||On Signing of the Franchise Agreement||Company|
|Real Estate and Construction Fee||$5,000||Lump Sum||On Signing Lease||Company|
and Utility Security Deposits
|$0 – $38,250||Monthly||Monthly||Landlord|
|Architectural Fees||$4,876 – $16,000||As Incurred||As Arranged||Approved Suppliers|
|Leasehold Improvements||$62,299 – $349,838||As Arranged||As Arranged||Landlord or Contractors|
|Equipment/Furniture/Small Wares||$11,255 – $101,677||As Arranged||As Arranged||Designated and Approved Suppliers|
|Initial Inventory||$966 – $29,044||As Arranged||As Arranged||Designated and Approved Suppliers|
|Insurance||$2,000 – $12,000||As Arranged||As Arranged||Your Insurance Company|
|Training||$2,500 – $56,850||As Incurred||As Incurred||Transportation, Hotels, Restaurants, Staff Salaries|
|Grand Opening Advertising||$12,500||Lump Sum||On Signing Lease||Company|
|Exterior Signage||$2,188 – $46,516||As Arranged||As Arranged||Approved Suppliers|
|Interior Branding/Graphics||$2,689 – $16,000||As Incurred||As Incurred||Approved Suppliers|
|Uniforms, Office Equipment and Supplies, TVs/Stereo|
|$2,260 – $25,361||As Incurred||As Incurred||Designated and Approved Suppliers|
|POS System||$85 – $13,305||As Incurred||As Incurred||Designated Suppliers|
|POS System Connection to Private Network||$2,000||As Incurred||Prior to Opening||Company|
|Professional Fees (lawyer, accountant, etc.)||$525 – $12,642||As Incurred||As Incurred||Accountant, Lawyer|
|Business Licences and Permits||$25 – $15,750||As Incurred||As Incurred||Local Municipality, State|
|Additional Funds for 3 months||$15,000||As Incurred||As Incurred||Approved Suppliers, Employees|
|Total||$144,668 – $786,233|
Will you Make Your Money Back?
Furthermore, in terms of a return on investment, the best-case scenario for a Jersey Mike’s franchise is making your money back in 3 years. If you have lower profitability of 10% it may take 5 years to get a return on your initial capital.