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- 2022 Franchise 500 Rank
#4 Ranked #7 last year
- Initial investment
$194K - $955K
- Units as of 2022
2,253 41.5% over 3 years
Here’s what you need to know if you’re interested in opening a Jersey Mike's Subs franchise.
Jersey Mike's Subs is a sub shop that focuses on serving delicious, fresh, authentic sub sandwiches. Started in 1956 on the Jersey Shore, Mike's Subs, as it was then called, took advantage of the new sandwich trend and became a successful business. In 1971, at the age of 17, Peter Cancro purchased the shop from Mike himself and took it to a different level.
After many people commented on how they wished they had Mike's Subs where they lived, Cancro caved and started franchising in 1987. Now called Jersey Mike's Subs, Peter oversees over 1,500 franchise locations. With a huge community initiative, Jersey Mike's Subs has worked to raise over $30 million for local charity partners.
Why You May Want to Start a Jersey Mike's Subs Franchise
Jersey Mike's Subs focuses on quality. It's something that its franchisees can be proud of. They make sandwiches with ingredients that may make your mouth water: red wine vinegar and a special olive oil blend, oven-baked daily bread, store cooked roast beef, in-house cut meats and cheese, and locally-sourced produce when available.
With a limited menu, franchisees may be able to focus on preparing fresh food daily and assembling delicious sub sandwiches. This franchise typically requires less equipment than others. And with smaller staff and location sizes, many report that the franchise can be fairly straightforward to manage.
On the flip side, Jersey Mike's Subs typically requires more training than other franchises. Its robust training system is intended to keep franchisees on their A-game. They don't just teach them how to prepare the food, but also how to run the business.
What Might Make a Jersey Mike's Subs a Good Choice?
The sandwich industry may be considered a fun and family-oriented business. Also, sandwiches may be the healthier and fresher option in the fast-food world. Therefore, you may be providing a great service to your community. When you open a Jersey Mike's Subs, you may be taking your slice of the pie in alternative food choices.
Jersey Mike's Subs has been ranked in Entrepreneur’s Franchise 500 many times in the past decade. This ranking is based on an evaluation of more than 150 data points in the areas of costs and fees, size and growth, franchisee support, brand strength, and financial strength and stability.
To be a part of the Jersey Mike's Subs team, you should make sure you are financially ready for an initial investment made up of a franchise fee and other startup costs. You should also prepare yourself for ongoing fees that will include royalty and advertising fees.
How to Start a Jersey Mike's Subs Franchise
Are you ready to open up your own Jersey Mike's Subs franchise? During the interview process, you're generally able to ask any questions you have. If you pass the interview, you now have to prove to Jersey Mike's Subs that you're serious—this is your period of due diligence. Depending on how you handle it, this process could take multiple months.
Franchisees typically spend multiple days training at an on-site Jersey Mike's Subs location before meeting with an executive team member. Then, you will typically sign your franchise agreement and start searching for franchise locations. Give yourself a few months to secure your area.
After construction begins, many franchisees undergo additional training. When that's all said and done, you can get ready for your Jersey Mike's Subs franchise grand opening.
About Jersey Mike's Subs
- Franchising Since
- 1987 (35 years)
- # of employees at HQ
- Where seeking
This company is seeking new franchisees throughout the US.
This company is seeking new franchisees worldwide.
- # of Units
- 2,253 (as of 2022)
Information for Franchisees
Here’s what you need to know if you’re interested in opening a Jersey Mike's Subs franchise.
Financial Requirements & Ongoing Fees
Here’s what you can expect to spend to start the business and what ongoing fees the franchisor charges throughout the life of the business.
- Initial Franchise Fee
Definition: The initial fee paid to a franchisor to join their system
What you need to know: Found in Item 5 of the FDD, this may be a flat fee, or may vary based on territory size, experience, or other factors.The franchise fee is an up-front (one-time) cost that a new franchisee pays to the franchisor. This fee is usually due at the signing of the franchise agreement and covers the right to use the franchisor's trademarks, name, and related business systems.
- Initial Investment
- $194,035 - $954,611
Definition: The total amount necessary to begin operation of the franchise
What you need to know: The initial investment includes the franchise fee, along with other startup expenses such as real estate, equipment, supplies, business licenses, and working capital. This is outlined in a chart in Item 7 of the FDD, showing a range of possible costs from low to high.
- Net Worth Requirement
Definition: The minimum net worth you must have in order to qualify to become a franchisee of this company
What you need to know: Net worth is the value of a person's assets minus liabilities. Assets include cash, stocks, retirement accounts, and real estate. Liabilities include items like mortgages, car payments, and credit card debt.
- Cash Requirement
Definition: The minimum liquid capital you must have available in order to qualify to become a franchisee of this company.
- Royalty Fee
Definition: A ongoing fee paid to the franchisor on a regular basis.
What you need to know: Most franchisors require franchisees to pay an ongoing royalty fee, which is detailed in Item 6 of the FDD. This fee is typically a percentage of weekly or monthly gross sales, but may also be a flat weekly, monthly, or annual fee.
- Ad Royalty Fee
Definition: An going fee paid to the franchisor on a regular basis to support advertising or marketing efforts.
What you need to know: This may also be called advertising fee, marketing fee, brand fund fee, and more, but the basic purpose is the same-- to support promotion of the brand systemwide. As with the royalty fee, it is detailed in Item 6 of the FDD, and can be a percentage of weekly or monthly gross sales or a weekly, monthly, or annual fee.
- Term of Agreement
- 10 years
Definition: The length of time your franchise agreement will last.
What you need to know: Franchise terms are typically anywhere from 5 to 20 years in length, but are sometimes instead dependent on factors such as the term of your lease. Once your term is up, you may have the option to renew your agreement, typically for a smaller fee than the original franchise fee.
- Is franchise term renewable?
Some franchisors offer in-house financing, while others have relationships with third-party financing sources to which they refer qualified franchisees.
- Third Party Financing
- Jersey Mike's Subs has relationships with third-party sources which offer financing to cover the following: franchise fee, startup costs, equipment, inventory, accounts receivable, payroll
Training & Support Offered
Franchisors offer initial training programs and a variety of ongoing support options to help franchisees run their businesses.
- On-The-Job Training
- 500 hours
- Classroom Training
- 40 hours
- Ongoing Support
NewsletterMeetings & ConventionsToll-Free LineGrand OpeningOnline SupportSecurity & Safety ProceduresLease NegotiationField OperationsSite SelectionProprietary SoftwareFranchisee Intranet Platform
- Marketing Support
Co-op AdvertisingAd TemplatesNational MediaRegional AdvertisingSocial MediaSEOWebsite DevelopmentEmail MarketingLoyalty Program/App
Additional details about running this franchise.
- Is absentee ownership allowed?
Definition: Absentee ownership means that the franchisee does not actively work in the franchise business or manage day-to-day operations.
- Can this franchise be run from home/mobile unit?
Definition: The business can be run from your home and/or a vehicle, and it is not necessary to have a retail facility, office space, or warehouse.
- Can this franchise be run part time?
Definition: This business can be run by the owner on a part-time basis (less than 40 hours per week) and/or as a side business; it is not necessary for the business to be open/run full-time.
- # of employees required to run
- Are exclusive territories available?
Definition: An exclusive territory is a fixed area in which you are given the right to operate and in which no other units of the same franchise may be opened.
What you need to know: Territory size may be based on factors such as radius, population size, zip codes, and more. Details can be found in Item 12 of the FDD.
Interested in franchise ownership like Jersey Mike's Subs? Request a free consultation with a Franchise Advisor now.
Franchise 500 Ranking History
Compare where Jersey Mike's Subs landed on this year’s Franchise 500 Ranking versus previous years.
Curious to know where Jersey Mike's Subs ranked on other franchise lists? Find out below.
Ranked #4 in 2022
Franchise 500 Ranking
Ranked #12 in 2022
Ranked #6 in 2022
Fastest-Growing Franchises (U.S. & Canada)
Ranked #1 in Submarine Sandwiches in 2021
Best of the Best
Ranked #1 in Submarine Sandwiches in 2022
Top Food Franchises
Ranked #1 in 2022
#1 in Sandwiches: Submarine Category
Are you eager to see what else is out there? Browse more franchises that are similar to Jersey Mike's Subs.
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