Jersey Mike’s Franchise Startup Cost, Profit & Opportunities
Ranked among the top 10 (#8) on the prestigious Entrepreneur Magazine’s top 500 franchise listings, this franchise opportunity is one of the best to invest in. Founded in 1956, Jersey Mikes started franchising 31 years later in 1987.
The Jersey Mike’s franchise specializes in the preparation of sub sandwiches. This is prepared right in front of its clients.
This brand has succeeded in warming its way into the hearts of its clients through mouthwatering menu offerings. The main product here is sub sandwiches which are prepared right in front of clients.
To be considered for this franchise opportunity, you’ll need to fulfill all its financial requirements. Such financial requirements consist of an initial investment, net-worth requirement, liquid cash requirement as well as the initial franchise fee in addition to ongoing fees.
We’ll discuss these in addition to other fees which haven’t been mentioned.
Your initial investment constitutes a variety of expenses such as the required working capital, real estate costs, business licenses, and equipment among others. The initial investment starts at $237,419 to $766,971.
Want to still see a breakdown of the initial investment sum? The following details will help.
The initial franchise fee starts at $18,500 and is paid upon signing the franchise agreement. You’ll need to pay a real estate and construction fee of $5,000 upon signing the lease. Rent/lease, and utility security deposits etc starts from $1,073 to $19,978. This is to be paid to the landlord. Architectural fees ranging from $3,000 to $17,800 and leasehold improvements between $136,000 to $384,419.
There are also equipment,furniture & small wares that cost between $20,997 to $132,236. Cost for initial inventory ranges from $5,000 to $15,000 while insurance starts at $2,000 to $6,000. There’s still more! Training will range between $1,500 to $36,785, grand opening and advertising starts at $12,500, exterior signage will range between $4,395 to $45,684.
Interior branding and graphics will gulp anywhere between $1,222 to $10,565. Uniforms, equipment and supplies etc is estimated at $1,122 to $29,496, POS system falls within $9,085 to $14,008, professional fees (accountant & lawyers) ranges from $1,000 to $3,000.
You’ll need to get business permits & licenses which will cost anywhere from $25 to $500, plus additional funds about $15,000 for 3 months.
Jersey Mike’s franchise requires all prospective franchisees to have a net worth of about $300,000. This is a pre-condition all franchisees must meet to be taken seriously. To further explain this, this consists solely of the value of your assets without the inclusion of your liabilities. So, what constitutes assets and liabilities?
Assets include such things as real estate, cash, stocks, and retirement accounts. These do not take away money from you but rather increase your income. Liabilities, on the other hand, do the exact opposite; taking away money from you.
They include credit card debt, mortgages and car payments among other things. The latter cannot be included in calculating your net worth.
Liquid Cash Requirement
Liquid cash is one of those things required by the franchisor. It requires liquid cash of about $100,000. Only when a franchisee has this amount plus other financial requirements do they stand the chance of getting considered or taken seriously.
During your franchise term, you’ll need to pay ongoing fees consisting of the ongoing royalty and ad royalty fees of 6.5 and 5%.
Prospective franchisees stand to benefit from Jersey Mike’s financing arrangement. This is provided through its third-party partners who provide financing covering key areas such as payroll, franchise fee, accounts receivable, startup costs, equipment, and inventory.
However, certain conditions may be set before by the franchisor before qualifying for financing.
Jersey Mike’s provides comprehensive support to its franchisees through a variety of ways. The basic types of support include marketing, ongoing support, and training. This ensures that you won’t have to be stranded as its franchisee.
Ongoing support, marketing support, and training are only broad categories that cover specific areas. Let’s find out by getting the details.
There are lots of areas covered by Jersey Mike’s support. These are critical to the effective operation and the success of its franchisees. Ongoing support covers vital areas such as site selection, online support, the use of its proprietary software, field operations and security/safety procedures.
Others include meetings and conventions, a toll-free line and a grand opening ceremony.
Jersey Mikes helps out its franchisees by giving them all the support required to market their franchise. As its franchisee, you stand to get benefit from cooperative advertising, as well as loyalty programs.
Others include national and regional media advertising, social media advertising, website development, and email marketing. What more? There are ad templates franchisees can use in addition to SEO.
Training is an essential part of Jersey Mike’s support services. Franchisees will need to be well trained to enable them to run their franchises. After investing and signing the necessary documents, the next step involves instruction.
Now, this is done onsite and lasts about 367 hours (approximately 15 days).
That’s not all though. You get an additional 28.75 hours of training at its corporate headquarters. Jersey Mike’s franchise allows for absentee ownership. That means you don’t need to be around as long as there are capable hands to run or operate the franchise.
Such persons will need to be trained too which might incur additional training costs.
Speaking of employees, how many are required to operate a Jersey Mike’s franchise? This ranges from 10 to 15.
If you’ve found this article informative, you can proceed to find out more or get started by proceeding to its online application form. After carefully filling the form with your personal information and submitting, you get contacted by a representative from the franchise for further discussions and a possible meet.
There you have it! The information we’ve included here are factual. However, Jersey Mike’s franchise might decide to make some adjustments to its franchise disclosure document FDD. The franchisor reserves the right to do so. Any such changes will reflect in the FDD handed out to franchises. Try as much as you can to have a full grasp of its content. Legal help is advised.