How much does it cost to open a Jersey Mike's franchise?

The total initial investment for a Jersey Mike's franchise ranges from $185,903 to $1,417,592. This includes the franchise fee of $20,000, buildout costs, equipment, and initial working capital.

What are the ongoing fees for a Jersey Mike's franchise?

Jersey Mike's franchisees pay a 6.5% royalty fee and a 1.0% advertising/marketing fund contribution. These are typically calculated as a percentage of gross revenue.

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

Based on Item 19 financial performance data, the median Jersey Mike's franchise generates $1,285,259 in annual revenue. Estimated owner profit is approximately $160,657.

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QSR 2,955 Units

Jersey Mike's Franchise Cost Breakdown

Complete investment analysis based on official FDD data

Total Investment

$185,903 – $1,417,592

Franchise Fee

$20,000

Royalty Rate

6.5%

Initial Investment Range

Low: $185,903 High: $1,417,592

The total initial investment to open a Jersey Mike's franchise ranges from $185,903 to $1,417,592, as disclosed in their Franchise Disclosure Document. This includes the one-time franchise fee of $20,000.

Midpoint estimate: $801,748

Franchise Fee

$20,000

One-time initial fee

The Jersey Mike's franchise fee is a one-time upfront payment made to the franchisor when you sign the franchise agreement. This fee grants you the right to operate under the Jersey Mike's brand and is included in the total initial investment range above.

Ongoing Fees

Royalty Fee

6.5%

of gross revenue

Ad/Marketing Fund

1.0%

of gross revenue

Total Ongoing Fee Burden: 7.5% of gross revenue

Combined royalty and advertising fund contributions before any other fees.

Other Ongoing Fees

Fee Type	Rate	Type	Notes
Continuing Royalty Fees	6.5	PCT	Payable weekly via wire transfer. Frequency of payment is subject to change. Gross Receipts includes total sales of food products, beverages, other merchandise and services, less sales/use/service taxes collected and paid, and customer refunds, discounts, and coupons.
Grand Opening Advertising	10000.0	FIXED	$10,000 for new franchises; $5,000 for transfers or relocations. Due when you sign a Franchise Agreement or upon Company approved transfer. To be spent during the first month of operation or re-opening.
Corporate Advertising and Development Fund	1.0	PCT	Currently 1.0% but may increase up to 6%. Total payments to Corporate Advertising and Development Fund, National Media Fund, and Cooperative Advertising Fund will not exceed 6% of Gross Receipts. Payable at same time and manner as Continuing Royalty Fees.
Cooperative Advertising	N/A	PCT	Currently not required but may be required in future. May increase up to 6%. Total contributions to all advertising funds will not exceed 6% of Gross Receipts. Payable at same time and manner as Continuing Royalty Fees if required.
National Media Fund	4.0	PCT	Currently 4.0% but may increase up to 6%. Total payments to all advertising funds will not exceed 6% of Gross Receipts. Payable at same time and manner as Continuing Royalty Fees.
Audit	N/A	VARIABLE	Payable only if audit shows you understated Gross Receipts by at least 2%. Due 30 days after billing. Includes all expenses connected with inspection, including reasonable accounting and legal fees.
Operation of the Franchised Restaurant in Case of Your Default	125.0	FIXED	Charged if Company operates Restaurant after franchisee fails to cure default within 20 days of written notice. Payable weekly at same time as Continuing Royalty Fees.
Late Fees	1.5	PCT	Interest at highest lawful rate not to exceed 1.5% per month. If payments 5+ days late, pay greater of $25 or 5% of amount due. Applies to Continuing Royalty Fees, advertising payments, and amounts due for purchases.
Supplier/Supplies Approval	N/A	VARIABLE	Applies to new suppliers or supplies not already approved by Company. Due at time of inspection.
General Contractor and Architect Approval	5000.0	FIXED	$5,000 each for general contractor and architect not already approved. Due upon commencement of construction build out or relocation. Fee may be waived in Company's sole discretion.
Operation of Franchised Restaurant Upon Your Absence, Incapacity or Death	125.0	FIXED	Rate subject to change. Payable weekly at same time as Continuing Royalty Fees. Prevents interruption/depreciation of Restaurant in case of absence, incapacitation or death.
Monthly Software License Fee and Support Package for Point of Sales System	395.0	FIXED	Currently $395/month but may increase up to $795/month within 12 months following issuance of FDD. Includes software programs, licensing fees, upgrades, and support services. Due 1st day of every month via wire transfer. Fee subject to change based on third-party costs.
Secure Network Fee for Processing of Credit Cards and Transferring of Sales Data	31.85	FIXED	Currently $31.85/month but may increase up to $39.85/month within 12 months following issuance of FDD. Due 1st day of every month via wire transfer. Fee subject to change.
Back-Up Cellular Service	30.0	FIXED	$30/month. Due 1st day of every month via wire transfer. Company will collect via ACH or franchisee may pay designated vendor. Fee subject to change.
Teamworx Software Fee	53.5	FIXED	Optional labor management software fee. Currently $53.50/month; $59.99/month on or before April 1, 2026. Only pay if you choose to use Teamworx. Due 1st day of every month via wire transfer. Fee subject to change based on third-party costs.
Gift Card Program	9.5	FIXED	$9.50/month. Due 1st day of every month via wire transfer. Collected by Company via ACH and paid to designated vendor. Fee subject to change based on direct costs.
Third-Party Delivery Fee	7.5	VARIABLE	$6.00-$9.00 per delivery, varying based on delivery distance. As incurred when customers order delivery via Company's website. Company auto-debits and remits to third-party vendor. Fee subject to change.
Online Ordering Fees	N/A	VARIABLE	Currently $0.2921 per transaction plus 3.74% of each sale. Covers credit card, patent licensing, e-commerce, sales tax software, and authentication fees. Due 1st day of every month via wire transfer. Fee subject to change.
Third-Party Order Fees	0.2921	FIXED	Currently estimated at $0.2921 per third-party transaction (not currently charged). Covers third-party order integration, software development and maintenance. Due 1st day of every month via wire transfer. Fee subject to change.
Text Message Fees	0.025	FIXED	Currently $0.025 per text message. As incurred. Only applies if franchisee chooses to send text messages to customer lists (Company may send messages at no cost to franchisee). Fee subject to change. Currently collected by Company but may be required to pay designated vendor.
Transfer Fee	15000.0	FIXED	$15,000 per Restaurant. Due at closing of transfer transaction. Covers administrative costs, overhead, legal fees, accounting and other expenses. Does not apply to assignment of interest to a corporation under Section 19.6.
Replacement Training	2500.0	FIXED	Up to $2,500 per trainee. Due in advance of training. Initial training is free (franchisee only pays expenses), but replacement training is charged. Currently $2,500 for Phases 1 and 3 (360 hours), may be adjusted pro rata. Fee subject to change.
Additional Assistance	75.0	FIXED	$75 per hour plus expenses. Due at time of assistance. Company provides 3 days of assistance during first month at its cost. Additional training or assistance is at franchisee's cost.
Continuing Education	N/A	VARIABLE	Franchisee pays own and employees' expenses for attending refresher training programs. Due at time of program. Attendance not required more than twice per year and will not exceed 4 days duration.
Maintenance	N/A	VARIABLE	Franchisee must maintain Premises. If franchisee fails to maintain after 30 days notice, Company may enter and effect repairs/replacements at franchisee's cost. Due at time of maintenance.
Cost of Enforcement or Defense	300.0	FIXED	All costs including attorneys' fees. Company's in-house counsel charged at $300/hour. Due on settlement or conclusion of claim or action. Franchisee reimburses Company if Company prevails in enforcement or defense.
Relocation Fee	5000.0	FIXED	$5,000 per relocation request plus reimbursement of Company's costs incurred. Due at time of relocation. Applies if franchisee requests and Company allows relocation of Restaurant.
Bookkeeping/Accounting Fee	150.0	FIXED	Currently estimated at $150 per week. Due within 10 days after end of each month. Applicable only to Coach Rod Smith Program participants, and only if JMFS requires use of JMFS's bookkeeping/accounting services. Fee subject to change. Paid directly to JMFS.
Indemnification	N/A	VARIABLE	Franchisee must indemnify and hold Company harmless against claims arising from operation of business. All costs including attorneys' fees. Due on settlement or conclusion of claim or action.
Liquidated Damages	N/A	VARIABLE	Formula: Average monthly royalty and advertising fees for 12-month period before termination multiplied by lesser of 36 months or number of months remaining in Franchise Agreement. Due upon Company's termination based on franchisee default. In addition to any other damages, costs, and expenses.

What You Get

Financial Performance (Item 19)

Median Revenue

$1,285,259

per year, per location

Profitability Estimate

Estimated Owner Profit

$160,657

per year

Profit Margin

12.5%

of revenue

Estimation method: benchmark

Estimated ROI (Simple Payback): 5.0 years

Based on midpoint investment of $801,748 and estimated annual owner profit of $160,657.

Unit Growth & Failure Rate

Avg. Annual Closure Rate

0.1%

Low risk — below industry average

Net Unit Growth

+886 units

From 2022 to 2024

Unit Activity History

Year	Start	Opened	Closed	Transfers	End
2022	2069	+301	—	—	2361
2023	2361	+296	—	—	2647
2024	2647	+318	-5	—	2955

Is a Jersey Mike's Franchise Worth It?

Based on the FDD data, here is a data-driven snapshot of the Jersey Mike's franchise opportunity:

Overall Score

100/100

Strong opportunity

Est. Payback Period

5.0 yrs

Average payback

Risk Level

Low

0.1% annual closure rate

Jersey Mike's scores well across our evaluation criteria, indicating a strong franchise system. With median unit revenue of $1,285,259 and a combined fee burden of 7.5% of gross revenue, prospective franchisees should model their own financial projections carefully. For a complete analysis including risk factors, deal-breaker flags, and detailed financial modeling, see the full report.