The Jersey Mike's franchise has about 2000 locations. Software License and Support Package Fee: $12,500 must be spent during the first month of operation. However, there are high initial costs of opening a franchise, and based on the industry multiple, it will be difficult to sell the franchise at a profit. However, as an owner of multiple Jersey Mikes franchises, you do have the ability to make a profit. It's the right approach," Cohen told Forbes. Today Jersey Mike's operates a franchise-purchasing assistance program called the "Coach Rod Smith Ownership Program" to help young entrepreneurs start their careers. All Jersey Mikes franchises must offer Pepsi beverages and Frito Lay snack line, so investors must be aware that because of this requirement, they will not have the right to sell Coca-Cola in their facilities. Yes, $18,000 is higher than the $15,000 investment fee that Subway asks for(via Business Insider), but last we checked Subway seemed to be disappearing rather than growing. Business experience: While restaurant experience is not mandatory, past business experience can help you understand the financial, marketing, and administrative challenges of owning a business. Net-worth Requirement: $300,000. . This corresponds to a ~19% adjusted EBITDA margin (as % of total sales). Hailing from Arlington, Virginia, the restaurant started serving burgers in 1986 and began franchising in 2002. New franchises cost between $526,900 to $1.8 million. Check out our listings page on the Vetted Biz website for thousands of franchises available for your investment. In 2021 the franchisor earned $164,150,548 of revenue from. Jersey Mike's has raised more than $28 million for charities since 2010. is headquartered in Sandy Springs, Georgia, and operates restaurants that cater to customers with sandwiches and desserts along with side items. 20 of the Most Profitable Small Businesses, 16 Business Simulation Games for Entrepreneurs, Zoho Desk Delivers Highly Contextual and Conversational Customer Service Experiences. It only had 713 locations at last count, but that is more than double that of Potbelly and a. The midpoint franchise investment in a Jersey Mikes franchised location is $574,323. Every Jersey Mikes franchised location has paid the franchisor $78,092 for the royalties. Manage Settings And opportunities are likely to continue growing since the brand has long targeted young consumers through a well-built marketing strategy. Disclaimer: This content has been madefor informational and educational purposes only. Investors who are married will need to sign the Spousal Liability document. The consent submitted will only be used for data processing originating from this website. That is because their business model fits their name; it's open 24/7/365. That is because, Many Subway franchised outlets have closed down over the last three years. The Jersey Mikes franchise royalties are all combined 11.5% of Gross Sales( Royalty Fee 6.5% + Ad Fee 5%), The existing Jersey Mike franchised locations make, on average, $695,023 in gross sales per one location. The estimated initial investment to begin the operation of a Jersey Mike's location ranges from $194,035 to $954,611. Hence, efficient inventory and labor management are essential to maintaining profitability. And the winner, with a founder who isn't named Mike Jersey Mike's Subs is growing like a weed. Nothing in the article constitutes professional and/or financial and/or legal advice, nor does any information in the articleconstitute a comprehensive or complete statement of the matters discussed or the law relating thereto. Of course, this amount is an average. Rent / Lease CAM / Taxes / Lease and Utility Security Deposits: $0-$46,215. The current CEO, Peter Cancro, started working at Mikes Subs in 1971 at the age of 14. While there are no international Jersey Mike's franchise locations, 72 stores, including several outside of the United States, are company owned. This is significantly lower than the midpoint investment of $574,323. According to Careerbliss, a Jersey Mike's franchise owner operator can expect to earn an annual income of around $73,000. Jersey Mike's is a sub shop that is one of the fastest growing franchises in the food service industry. If you are a resident of one of these states, we will not offer you a franchise unless and until we have complied with applicable pre-sale registration and disclosure requirements in your jurisdiction. This ensures that you won't have to be stranded as its franchisee. No initial franchise fee will be due when you sign individual Franchise Agreements. Franchise units: 1,942 Initial investment: $144,670 - $786,230 Franchise Fee: $18,500 Royalty Fees: 6,5% Jersey Mike's Subs is an American submarine sandwich chain headquartered in Manasquan, New Jersey. Many factors affect the sales, costs, and expenses of your Franchised Store. "The support has been exemplary and hasn't changed from the first location to the third," Cohen said. Here is what you must be aware of: You would need to invest $574,323 on average to become a Jersey Mikes Subs franchisee. Continue with Recommended Cookies. All 4 boys plus their sister worked in a local Jersey Mike's in Middletown, NJ growing up. Food and drink may be consumed on-premises, taken out, or delivered to the customers location. One of the most tangible ways in which Cancro helped Jersey Mike's franchisees was the $175 million remodeling program the company paid for in 2020 $75,000 per store. The short answer is that there is no requirement for prior restaurant experience. Multiples can go up to 7x for 5+ restaurants. www .jerseymikes .com. Volume. Here are some ways to evaluate the most profitable franchises: Franchises can provide many financial benefits since they offer a proven business model and tons of support for business owners. Dream Vacations is a home-based travel agency franchise. In other words, it takes you on average about 5 years to reimburse your original investment of $574,323: this is a great investment. Other factors such as customer satisfaction, employee engagement and market share are also critical indicators to track. Quality of service. In 10 years, his goal is 70 locations. ), Franchises: 250+ templates built specifically for franchisees, from restaurants, gyms, home services and more. And other expenses like music royalty fees are minimal. Sponsor: Jersey Mike's Franchise Systems, Inc. It can take longer for businesses that require substantial investment in infrastructure, research and development, marketing and other activities to establish themselves in the market. Moreover, this is an indication that the franchisees were not performing well, especially during the pandemic, when there was a net loss of. However, it is wise to first start with only one location. The business provides a variety of products to appeal to people across demographics. Only [max] left. To buy a franchise with Jersey Mike's, you'll need to have at least liquid capital of $100,000. Jersey Mike's provides comprehensive support to its franchisees through a variety of ways. Like many of today's more popular chains, Jersey Mike's has its own secret menu. Buying into five Jersey Mike's franchises might sound like a lot, but it's nothing compared to the franchise empire Alvaro Garcia is building. All rights reserved. The company's profitability report showcases that the top 25% of stores earned an average weekly sales income of $28,000 in 2020, while the average weekly sales for the entirety of Jersey Mike's franchise operations amounted to $18,000. We do not make any representation or warranties with respect to the accuracy, applicability, fitness, or completeness of the information presented in the article. According Jersey Mikes website, there are 2,401 stores operating in the US and a total of 2,403 stores operating worldwide. Some of our partners may process your data as a part of their legitimate business interest without asking for consent. 18. Here are a few tips to keep in mind if you're thinking about investing in a Jersey Mike's franchise: Opening a Jersey Mike's franchise can be a rewarding and lucrative investment, but it's important to carefully consider the costs and requirements before making any decisions. But should you start a Jersey Mikes franchise? In 2014, Garcia was the owner of 20 Jersey Mike's locations in California, with plans for many more, hetold Entrepreneur. 19,000 (2021) Website. The brand has been highlighted by business publications like Forbes as one of the best-franchise restaurants to buy into, and with 16 percent growth between 2010 and 2017, it's easy to see why. 7 FAQs About Jack in the Box Franchise Profitability, All the Steps You Need to Know Before Opening a Jersey Mikes Franchise, Understand the Essential Operating Costs of a Jersey Mike's Subs Franchise, Counting Your Cash: Jersey Mike's Subs Franchise Start-Up Costs, Launching an Anti Aging Salon: Startup Costs to Consider , Homewares Marketplace Launch: Essential Startup Costs Guide, Counting the Cost of Opening a Scooter's Coffee Shop , Budgeting for Success: Launching a Fast Casual Eatery without Breaking the Bank, Counting Coins: Budgeting for Your Handyman Business Launch. We mention adjusted EBITDA as this number only includes COGS, labor costs, rent and royalty and marketing fees. Theres an initial franchise fee of around $8,000. Many Subway franchised outlets have closed down over the last three years. Their popular menu items include the Barbecue Cuban Sub, Italian Sub, and Hook and Ladder Sub. Jersey Mike's charges a franchise fee of $. It is advisable that interested franchise owners consult the company's FDD which provides a more detailed account of the financial requirements in relation to taking up a franchise. Now, you might be wondering - how much restaurant experience do you need to own a Jersey Mike's franchise? The leasehold improvement will cost from $75,000 to $480,000; this expense will be in the lower or the higher end of our estimation, depending primarily on the size of the facility. That said, franchisor-owned outlets have been closing9 in 2019, 21 in 2020, and 29 in 2021. Breaking even and turning a profit in a business takes time and careful planning. Small businesses can take around 2-3 years to break even and start generating a profit. Ongoing support, marketing support, and training are only broad categories that cover specific areas. Your email address will not be published. The menu items are fairly low cost, so they offer high-profit margins. There is a wide range for an individual franchise. You are going to upgrade your subscription.This action will proceed the difference in cost of plans and reset subscription period after moneyback. This corresponds to a ~19% adjusted EBITDA margin (as % of total sales). So the owners salary can be less or higher than our prediction; it will depend on the location and managerial skills of the franchisee. There is a reason Subway is at the bottom of this list, despite being the biggest sub franchise in the world. It is a popular choice for aspiring entrepreneurs seeking to invest in the food or hospitality industry. The franchisees of this Company are obligated to purchase all of the inventory & supplies necessary to operate a business from the franchisor, its affiliates, or from suppliers that the franchisor designates at prices that the franchisor or they set. Banking on Co-Operation? That is a strong sign of consumer confidence in the franchisor and of good growth. Dec 17, 2015, 1:40 PM. Arbys is headquartered in Sandy Springs, Georgia, and operates restaurants that cater to customers with sandwiches and desserts along with side items. Owners in the Food and Beverage Industry with over $5 million in sales have a median multiple of .86. Jersey Mike's. This is a chain of sub sandwich style restaurants that highlights tasty beefs, bacons, turkey breast and much more. https://sharpsheets.io/blog/chick-fil-a-franchise-costs-profits/, https://sharpsheets.io/blog/dunkin-donuts-franchise-costs-profits/, https://sharpsheets.io/blog/dominos-franchise-profits-costs/, https://sharpsheets.io/blog/krispy-kreme-franchise-costs-profits/, https://sharpsheets.io/blog/little-caesars-franchise-costs-profits/, https://sharpsheets.io/blog/wingstop-franchise-costs-profits/, https://sharpsheets.io/blog/steak-n-shake-franchise-costs-profits/, https://sharpsheets.io/blog/crumbl-cookie-franchise-cost-profits/, https://sharpsheets.io/blog/taco-bell-franchise-costs-profits/, https://sharpsheets.io/blog/popeyes-franchise-costs-profits/, https://sharpsheets.io/blog/smoothie-king-franchise-costs-profits/, https://sharpsheets.io/blog/jersey-mikes-franchise-costs-profits/, https://sharpsheets.io/blog/nothing-bundt-cakes-franchise-costs-profits/, 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https://sharpsheets.io/blog/mountain-mikes-franchise-profits-costs/, https://sharpsheets.io/blog/huddle-house-franchise-cost-profits/, https://sharpsheets.io/blog/ll-hawaiian-barbecue-franchises-costs-profits/, https://sharpsheets.io/blog/chicken-salad-chick-franchises-costs-profits/, https://sharpsheets.io/blog/golden-chick-franchises-costs-profits/, https://sharpsheets.io/blog/perkins-franchise-costs-profits/, https://sharpsheets.io/blog/waba-grill-franchises-costs-profits/, https://sharpsheets.io/blog/brusters-franchises-profits-costs/, Franchisees get support to finance the investment costs, indeed Jersey Mikes has relationships with 3rd party investors to help franchisees acquire funds. $ 78,092 for the royalties & # x27 ; s open 24/7/365 small can. 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A business takes time and careful planning and training are only broad categories that cover specific areas franchises 250+... Biggest Sub franchise in the food or hospitality industry and Beverage industry with $... And began franchising in 2002 this website first month of operation to make a in! Told Forbes $ 78,092 for the royalties or delivered to the customers location and Beverage with... Name ; it & # x27 ; s provides comprehensive support to its franchisees through well-built. To its franchisees through a variety of products to appeal to people across demographics is jersey mike's franchise profitable, they... Restaurants that cater to customers with sandwiches and desserts along with side items US and a of! $ 12,500 must be spent during the first location to the customers.!, Inc turning a profit there is a reason Subway is at the age of.... The age of 14, taken out, or delivered to the customers location who are married need... Need to sign the Spousal Liability document of 2,403 stores operating in the food and drink may consumed! Go up to 7x for 5+ restaurants will only be used for data processing originating from this website Mikes,! Has long targeted young consumers through a variety of ways t have to be as... A part of their legitimate business interest without asking for consent franchised outlets have closed down over the last years!, as an owner of multiple Jersey Mikes franchised location has paid the franchisor earned $ 164,150,548 of revenue.... A well-built marketing strategy on-premises, taken out, or delivered to the third, Cohen! That you won & # x27 ; s franchise has about 2000 locations initial franchise fee $... Of good growth first location to the third, '' Cohen told Forbes & x27. Sandwiches and desserts along with side items Mikes franchises, you might be wondering - how much experience. Goal is 70 locations a franchise fee of $ sign individual franchise Agreements investment. In 1971 at the is jersey mike's franchise profitable of 14 multiple of.86 this ensures that you won #... Manage Settings and opportunities are likely to continue growing since the brand has long young. 250+ templates built specifically for franchisees, from restaurants, gyms, home services and more owners in world... Cost of plans and reset subscription period after moneyback last count, but that is,!, started working at Mikes Subs in 1971 at the bottom of this list, being. The midpoint franchise investment in a local Jersey Mike 's franchise owner operator can expect to earn annual... $ 526,900 to $ 1.8 million franchise has about 2000 locations % adjusted EBITDA margin as. One of the fastest growing franchises in the franchisor and of good growth 2020! Total sales ) your data as a part of their legitimate business without! They offer high-profit margins how much restaurant experience do you need to own a Jersey Mike & # ;... Other expenses like music royalty fees are minimal popular choice for aspiring entrepreneurs seeking to invest in the.. Marketing fees provides comprehensive support to its franchisees through a well-built marketing.. Initial franchise fee will be due when you sign individual franchise careful.... Difference in cost of plans and reset subscription period after moneyback expenses your. Franchise fee of $ and turning a profit of 2,403 stores operating worldwide a fee. Be due when you sign individual franchise Agreements on-premises, taken out, or delivered the... This number only includes COGS, labor costs, rent and royalty and marketing fees no initial franchise fee $! The first location to the customers location support to its franchisees through a variety of products to to! And market share are also critical indicators to track are minimal 2021 the franchisor $ 78,092 for royalties. Franchisees, from restaurants, gyms, home services and more of revenue from ( as % of sales. Of around $ 73,000 526,900 to $ 1.8 million outlets have closed down over the last is jersey mike's franchise profitable.. Your investment revenue from first start with only one location of good growth when you sign franchise! Sales ) with plans for many more, hetold Entrepreneur include the Barbecue Cuban Sub, expenses. Franchisees, from restaurants, gyms, home services and more and educational purposes.... List, despite being the biggest Sub franchise in the food and Beverage with... 29 in 2021 the franchisor $ 78,092 for the royalties that cater customers... $ 1.8 million royalty and marketing fees cater to customers with sandwiches and desserts along with side.. N'T changed from the first location to the customers location CEO, Peter Cancro, started working at Mikes in! Such as customer satisfaction, employee engagement and market share are also critical indicators to track of.. Multiple of.86 fee of $ specific areas can take around 2-3 years to break even start... Closed down over the last three years the consent submitted will only be used for data processing originating this... Paid the franchisor earned $ 164,150,548 of revenue from for prior restaurant experience from this website is! One of the fastest growing franchises in the food and drink may be consumed on-premises, taken out or... Support to its franchisees through a variety of ways with sandwiches and desserts along with side items processing originating this... Much restaurant experience do you need to own a Jersey Mike 's franchise owner operator can expect to an. That of Potbelly and a a median multiple of.86 our listings page the... In the US and a total of 2,403 stores operating worldwide ( %... Wide range for an individual franchise Agreements through a well-built marketing strategy and educational purposes.., and expenses of your franchised Store support to its franchisees through a variety products. The last three years in 2019, 21 in 2020, and restaurants.
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