Ike’s Franchise FDD, Profits & Costs (2025)
Ike’s Love & Sandwiches, often referred to simply as Ike’s, is a well-known franchise celebrated for its gourmet sandwiches and inventive culinary twists. Launched in 2007 by Ike Shehadeh in San Francisco, California, the brand has gained recognition for revolutionizing the sandwich industry with bold and creative flavor combinations.
Operating out of its San Francisco headquarters, Ike’s expanded into franchising in 2014. The franchise boasts a varied menu packed with distinctive sandwiches, highlighted by signature elements like the famous “Ike’s Dirty Sauce.”
With options designed to accommodate a wide range of dietary preferences, Ike’s ensures there’s something for everyone. What sets Ike’s apart is its unwavering focus on using fresh, high-quality ingredients paired with an extensive menu of innovative, customizable sandwich choices.
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Initial Investment
How much does it cost to start a Ike’s franchise? It costs on average between $141,000 – $614,000 to start a Ike’s franchised restaurant.
This includes expenses for construction, equipment, initial inventory, and operating costs. The total investment can vary based on several factors, such as the type of Ike’s location, its geographic area, and whether the franchisee opts to lease or purchase the property.
Type of Expenditure
| Type of Expenditure | Amount |
|---|---|
| Initial Franchise Fee | $80,000 |
| Delayed Opening Fee | $0 to $9,000 |
| Leasehold Improvements & Construction Cost | $5,000 to $150,000 |
| Licenses and Permits (Not Including Beer & Wine License) | $500 to $4,000 |
| Rent – 3 months | $3,000 to $54,000 |
| Security Deposits | $200 to $20,000 |
| Blueprints | $250 to $20,000 |
| Furnishings, Fixtures & Equipment | $4,000 to $100,000 |
| Signage – Interior and Exterior | $450 to $20,000 |
| POS Computer System | $1,000 to $15,000 |
| Travel & Living Expenses While Training | $500 to $5,000 |
| Manager/Leadership Training | $2,000 to $6,000 |
| Insurance – 3 Months | $900 to $3,000 |
| Professional Fees | $1,000 to $5,000 |
| Grand Opening Advertising Campaign | $15,000 |
| Opening Inventory & Supplies | $2,500 to $15,000 |
| On-Site Location Evaluation | $0 to $500 |
| Delivery Vehicle | $0 to $2,500 |
| Ancillary Real Estate Costs | $5,000 to $50,000 |
| Additional Funds – 3 Months | $20,000 to $40,000 |
| Total | $141,300 to $614,000 |
Average Revenue (AUV)
How much revenue can you make with a Ike’s franchise? A Ike’s franchised restaurant makes on average $475,000 in revenue (AUV) per year.
Here is the extract from the Franchise Disclosure Document:
This compares to $832,000 yearly revenue for similar pizza franchises. Below are a few Ike’s competitors as a comparison:
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Ike’s Franchise Disclosure Document
Frequently Asked Questions
How many Ike’s locations are there?
As of the latest data, Ike’s Love & Sandwiches operates 105 locations across the United States. The majority are in California, which hosts 78 locations, accounting for approximately 74% of the total. The company predominantly owns these establishments, with franchising opportunities currently closed to new applicants.
What is the total investment required to open a Ike’s franchise?
The total investment required to open a Ike’s franchise ranges from $141,000 to $614,000.
What are the ongoing fees for a Ike’s franchise?
Ike’s Love & Sandwiches requires franchisees to pay an 8% royalty fee on gross sales, contributing to ongoing support and brand development. Additionally, franchisees are obligated to allocate 2% of gross sales to a worldwide creative fund for marketing efforts, with an extra 1% designated for local store marketing initiatives.
What are the financial requirements to become a Ike’s franchisee?
To qualify as a franchisee for Ike’s Love & Sandwiches, candidates should possess a minimum net worth of $1 million and have at least $500,000 in liquid capital available for investment. These financial prerequisites are essential to ensure that franchisees have the necessary resources to support the development and operation of multiple units within the franchise.
How much can a Ike’s franchise owner expect to earn?
The average gross sales for a Ike’s franchise are approximately $0.48 million per location. Assuming a 15% operating profit margin, $0.48 million yearly revenue can result in $72,000 EBITDA annually.
Who owns Ike’s?
Ike’s Love & Sandwiches is owned by founder Ike Shehadeh and led by CEO Michael Goldberg as of the latest information.
Disclaimer
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