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How Profitable is a Jersey Mike’s Franchise? 2022 Costs & Profits

With 2,401 stores in the US alone, Jersey Mike’s is one of the most popular sandwich franchises in the US. But should you start a Jersey Mike’s franchise? With an investment of $574,323 and average annual sales of $1,220,586, it does look like it.

Indeed, in order to assess whether this sandwich chain is a good investment from a financial standpoint, you must read between the lines in their Franchise Disclosure Document.

Don’t worry, that exactly what we did here. We’re looking at Jersey Mike’s franchises’ financial performance to assess whether this is a profitable business as a franchisee. Let’s dive in!

Jersey Mike’s franchise: key figures

Franchise fee$18,500
Royalty fee6.5%
Marketing fee5.0%
Investment (mid-point)$574,323
Average annual sales$1,220,586
Investment to sales ratio2.1x
Investment payback*4.7 years (good)
Minimum net worth$300,000
Minimum liquid capital$100,000
* using 10% net profit margin

🔎 How does Jersey Mike’s compare vs. other franchises? Check the ranking

Jersey Mike’s: an introduction

Headquartered in Manasquan, New Jersey, Jersey Mike’s Subs is an American multinational submarine sandwich chain.

The chain offers made-to-order submarine sandwiches in which meat and cheese is sliced as required. Toppings include shredded lettuce, sliced onions, oregano, tomatoes, salts & spices, and mixture of olive oil and red wine vinegar.

According Jersey Mike’s website, there are 2,401 stores operating in the US and a total of 2,403 stores operating worldwide. Another 260 locations will be opened soon.

Jersey Mike’s franchises: pros and cons

Owning a Jersey Mike’s Subs franchise store comes with some pros and cons. Here is what you must be aware of:


  • The company has a very low franchise fee of $18,500
  • Franchisees get support to finance the investment costs, indeed Jersey Mike’s has relationships with 3rd party investors to help franchisees acquire funds
  • A franchisee gets exclusive territory protection
  • The company offers extensive training and ongoing support to help the franchisees succeed


  • They do not allow absentee ownership, which means you must be overlooking and managing the day-to-day operations. In addition, they don’t allow to run the franchise as a part time business
  • They require franchisees to have 10-15 employees minimum, which can increase operational overhead
  • They have rather high royalty and marketing fees vs. similar franchises (6.5% + 5%)

How much does a Jersey Mike’s franchise cost?

You would need to invest $574,323 on average to become a Jersey Mike’s Subs franchisee.

Yes, this investment amount will vary based on the location, size, or type of restaurant you are willing to open. As per the latest FDD, the investment amount ranges from $194,035 to $954,611.

In addition to the initial franchise fee of $18,500, the total investment covers all types of expenses that occur during the opening of a restaurant:

  • Formation costs: real estate and construction fees, rent, leasehold improvements, equipment, furniture, exterior signage, interior branding, licenses and permits, etc.
  • Operating expenses: initial inventory, insurance, training, grand opening advertising, additional funds to cover for the first 3 months of business, etc.
Type of costInvestment amount
Initial franchise fee$18,500
Formation costs$154,535 – $891,111
Operating expenses$21,000 – $45,000
Total$194,035 – $954,611
Source: 2022 FDD

How much can you make with a Jersey Mike’s franchise?

An average Jersey Mike’s Subs franchise makes $1,220,586 in sales per year.

This amount is the estimated median sales of franchises operated in 2021. As Jersey Mike’s Subs do not disclose sales per restaurant in its Franchise Disclosure Document, we derived the amount by dividing total franchise sales ($2 billion) by the total number of franchises (2,069). 

How profitable is a Jersey Mike’s franchise?

As per our analysis, Jersey Mike’s franchisees earn profits of $236,242 per year. This corresponds to a ~19% adjusted EBITDA margin (as % of total sales).

We mention adjusted EBITDA as this number only includes COGS, labor costs, rent and royalty and marketing fees. Therefore, any other expenses (taxes, debt, other non-operating costs) aren’t included in this calculation (more on that latter).

The 19% margin is slightly below the industry average for similar franchises (25-29%). This is due to higher than average rent and royalty and marketing fees. Please note we used industry average for COGS and labor costs (which the Franchise Disclosure Document doesn’t disclose) so it’s possible that these costs are actually lower.

Here’s our breakdown from sales to profits:

Profit-and-lossAmount ($)As % of sales
Royalty + marketing fees$(140,367)11.5%
Adjusted EBITDA$236,242~26%
* industry average

Is a Jersey Mike’s franchise a good investment?

Even though Jersey Mike’s has a ~26% adjusted EBITDA margin as per our calculations, it doesn’t tell us much about whether it’s a good investment.

In order to assess that, we need to look at the investment payback period: the time it takes a franchisee to recoup its original investment by using net profits instead of EBITDA.

As per our analysis, Jersey Mike’s is a great investment: indeed the payback period only is 4.7 years. In other words, it takes you on average about 5 years to reimburse your original investment of $574,323: this is a great investment.

Of course, these numbers are based on averages, as we discussed earlier. Your store may have very different numbers instead. For example, your store may have higher sales due to its location, size, etc.

That’s why, in order to form a solid opinion on whether you should invest in a Jersey Mike’s franchise, prepare a financial plan. You can also download our business plan below in which you will find everything you need, from breakeven point to ROI and payback period.

Download the Jersey Mike’s business plan and get your franchise funded

Including a 5-year financial plan built with the latest Franchise Disclosure Document numbers

How does it compare vs. other franchises?

FranchiseInvestment ($)Sales ($)S/I RatioPayback (years)Min. net worth ($)Min. liquid capital ($)
Dunkin' Donuts,0001,056,5211.44.9500,000250,000
Krispy Kreme,0003,400,0004.11.62,000,000300,000
Little Caesars,022,850798,1130.88.5350,000150,000
Steak 'n Shake, Milshakes815,6261,346,3321.74.01,500,000500,000
Crumbl Cookies,2241,582,0903.12.1300,000150,000
Taco Bell,4131,650,0003.61.91,500,000750,000
Smoothie King,108573,2690.88.0300,000100,000
Jersey Mike's,3231,220,5862.14.7300,000100,000
Nothing Bundt Cakes,6501,307,2802.42.7600,000150,000
Jimmy John's,650874,8451.73.9300,00080,000
Texas Roadhouse,209,5002,955,5340.79.5n.a.200,000
Kung Fu Tea tea250,125353,2371.44.7n.a.25,000
Burger King,242,9501,215,9701.06.81,500,000500,000
Sonic Drive-In,467,0831,617,0001.16.01,000,000500,000
Panera Bread,290,5002,599,4321.15.97,500,0003,000,000
Pizza Hut,575906,9111.06.9700,000350,000
Dairy Queen Cream1,404,2201,143,1800.88.2750,000400,000
Jack in the Box,195,8001,755,5030.812.51,000,000250,000
Papa John’s,6951,101,1273.12.1750,000250,000
Five Guys,2251,203,3662.42.8500,000250,000
Carl’s Jr.,860,3351,419,5160.88.71,000,000500,000
Baskin-Robbins Cream465,100316,8150.79.8250,000125,000
Applebee’s American5,137,9662,356,9650.514.51,000,000500,000
Denny's American3,785,4591,639,5490.415.41,000,000500,000
Papa Murphy's,174580,4411.35.0275,000125,000
Auntie Anne's,692343,1351.55.6300,000100,000
Firehouse Subs,186888,3561.44.6350,000100,000
Tropical Smoothie Cafe,500961,9692.23.0350,000125,000
Marco’s Pizza,625895,5232.03.3400,000100,000
Cold Stone Creamery Cream310,956417,5881.35.0250,000100,000
Church’s Chicken,195,1471,395,0881.25.71,000,000300,000
Moe’s Southwest Grill,3701,013,3611.35.21,000,000100,000
Tim Hortons,242,7501,188,2401.07.0500,000100,000
Checkers & Rally's,8471,039,7731.25.4750,000250,000
Charleys Philly Steaks,806786,2331.54.3500,000100,000
Buffalo Wild Wings,546,9002,534,1480.79.31,500,000750,000
Rita's Ice Cream215,839248,3401.25.8300,000100,000
A&W Restaurants,750851,2121.16.2350,000150,000
Hungry Howie’s Pizza,682806,8991.93.5750,000200,000
McAlister’s Deli,424,9631,865,8611.35.11,000,000500,000
Round Table Pizza,2501,037,8161.35.0500,000200,000
Qdoba Mexican Eats,250972,9621.54.5
Taco John’s,119,0001,124,9801.06.61,000,000400,000
Scooter’s Coffee,143,250797,1010.79.6500,000200,000
Einstein Bros. Bagels,075885,0111.25.71,000,000536,500
Great American Cookies,275452,7711.25.7250,000100,000
Wienerschnitzel dogs873,300880,9801.06.6600,000250,000
Blaze Pizza,4501,096,4321.37.9500,000300,000
Wetzel's Pretzels,571748,8572.03.4300,00050,000
Pizza Ranch,268,3001,174,0880.418.61,000,000297,000
Del Taco,406,8501,345,3411.07.02,000,000500,000
Schlotzsky’s, Salads1,102,9331,053,3330.322.21,000,000300,000
Captain D’s,7781,067,8160.419.01,000,000350,000
Biggby Coffee,575648,3520.320.0300,000100,000
Which Wich,375281,8860.322.2500,000150,000
Marble Slab Creamery Cream407,360251,0520.416.7250,000100,000
Mountain Mike's Pizza,900865,7130.320.0300,000100,000
Huddle House,743712,4280.513.3600,000300,000
L&L Hawaiian Barbecue,350612,9210.333.3500,000150,000
Chicken Salad Chick, Salads651,0001,202,0200.320.0750,000250,000
Golden Chick,975917,6092.52.62,000,000425,000
Waba Grill,000466,5361.06.51,000,000250,000
Bruster’s Ice Cream Cream663,925466,6960.79.5375,000150,000