Jersey Mike’s Franchise FDD, Profits & Costs (2025)
Jersey Mike’s Subs, founded in 1956 in Point Pleasant, New Jersey, started as Mike’s Subs, gaining popularity for its fresh submarine sandwiches. Its coastal location attracted both locals and tourists, thanks to its high-quality food and friendly service.
In 1971, Peter Cancro, a high school employee, purchased the shop at just 17 with a loan from his football coach. By 1987, Peter began franchising the business, rebranding it as Jersey Mike’s Subs to emphasize its New Jersey roots. The company is now headquartered in Manasquan, New Jersey.
Known for premium ingredients and freshly baked bread, Jersey Mike’s prepares sandwiches in front of customers using the famous “Mike’s Way” method, with lettuce, onions, tomatoes, oil, vinegar, and spices.
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Jersey Mike’s Franchise Initial Investment
It costs on average between $214,000 – $1,353,000 to start a Jersey Mike’s franchised restaurant.
This includes costs for construction, equipment, inventory, and initial operating expenses. The exact amount depends on various factors, including the type of restaurant you choose, the location, and whether the franchisee chooses to lease or purchase the property.
| Expenditure | Actual or Estimated Amounts |
|---|---|
| Initial Franchise Fee | $18,500 |
| Real Estate and Construction Fee | $5,000 |
| Rent/Lease CAM/Taxes/Lease and Utility Security Deposits | $0 – $67,709 |
| Architectural Fees | $2,389 – $28,796 |
| Leasehold Improvements | $110,000 – $762,064 |
| Equipment/Furniture/Small Wares | $28,961 – $152,550 |
| Initial Inventory | $4,200 – $27,465 |
| Insurance | $1,000 – $13,829 |
| Training | $2,000 – $86,400 |
| Grand Opening Advertising | $12,500 |
| Exterior Signage | $2,370 – $53,100 |
| Interior Branding/Graphics | $3,074 – $14,684 |
| Uniforms, Office Equipment and Supplies, TVs/Stereo System/Security System | $3,258 – $38,531 |
| POS System | $2,085 – $17,452 |
| POS System Connection to Private Network | $3,000 |
| Professional fees (lawyer, accountant, etc.) | $800 – $18,000 |
| Business Licenses and Permits | $312 – $18,000 |
| Additional Funds for 3 months | $15,000 |
| Total | $214,449 – $1,352,580 |
Jersey Mike’s Franchise Average Revenue (AUV)
A Jersey Mike’s franchised restaurant makes on average $1,113,000 in revenue (AUV) per year.
Here is the extract from the Franchise Disclosure Document:
This compares to $838,000 yearly revenue for similar restaurant sandwich franchises. Below are 10 Jersey Mike’s competitors as a comparison:
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We have compiled the list of the top 400 franchises across 9 industries. Download the report below.
Jersey Mike’s Franchise Disclosure Document
Frequently Asked Questions
How many Jersey Mike’s locations are there?
As of 2023, Jersey Mike’s operates 2,647 locations, with 2,623 being franchise-owned and 24 being company-owned. This franchise-driven growth model has contributed significantly to its rapid expansion across the United States.
What is the total investment required to open a Jersey Mike’s franchise?
The total investment required to open a Jersey Mike’s franchise ranges from $214,000 – $1,353,000.
What are the ongoing fees for a Jersey Mike’s franchise?
Jersey Mike’s franchisees are required to pay a 6.5% royalty fee on gross receipts for all locations. Additionally, there is a 5.0% advertising fee on gross receipts, which includes both national and local marketing efforts.
What are the financial requirements to become a Jersey Mike’s franchisee?
To become a Jersey Mike’s franchisee, you must meet the following financial requirements: Minimum Net Worth of $300,000 and at least $100,000 in Liquid assets.
How much can a Jersey Mike’s franchise owner expect to earn?
The average gross sales for a Jersey Mike’s franchise are approximately $1.11 million per location. Assuming a 15% operating profit margin, $1.11 million yearly revenue can result in $166,500 EBITDA annually.
Who owns Jersey Mike’s?
Jersey Mike’s is owned by Peter Cancro, who purchased the original Mike’s Subs in Point Pleasant, New Jersey, in 1975 when he was just 17 years old. He used a loan, backed by his high school football coach, to buy the shop where he had worked since he was 14. Cancro transformed Mike’s Subs into Jersey Mike’s Subs and has since grown the brand into a national franchise.
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