The Jersey Mike's franchise requires a total investment of $186K – $1.42M with a 6.5% royalty fee and operates 2,955 units in the QSR category. This report analyzes the full Franchise Disclosure Document including unit economics, fee structure, growth trends, and risk indicators to help you evaluate the cost of investing in Jersey Mike's.
Composite quality score based on growth, stability, efficiency, fees, transparency, and system size.
Estimated initial investment range as disclosed in the most recent FDD.
| Line Item | Low Estimate | High Estimate |
|---|---|---|
| Franchise Fee | $10,000 | $10,000 |
| Franchise Fee | $20,000 | $20,000 |
| Real Estate | $0 | $72,480 |
| Other | $1,050 | $33,142 |
| Buildout | $75,172 | $722,422 |
| Equipment | $31,627 | $207,546 |
| Inventory | $1,923 | $35,000 |
| Insurance | $1,000 | $24,780 |
| Training | $1,000 | $68,000 |
| Other | $10,000 | $10,000 |
| Signage | $1,121 | $40,073 |
| Signage | $1,610 | $11,208 |
| Other | $900 | $65,507 |
| Technology | $8,250 | $27,509 |
| Technology | $4,500 | $4,500 |
| Technology | $2,000 | $4,000 |
| Legal Accounting | $250 | $21,425 |
| Other | $500 | $25,000 |
| Working Capital | $15,000 | $15,000 |
| Total | $185,903 | $1,417,592 |
Ongoing fees as disclosed in the FDD.
| Fee Type | Rate | Type | Basis | Frequency |
|---|---|---|---|---|
| Continuing Royalty Fees | 6.5% | PCT | Gross Receipts | weekly |
| Grand Opening Advertising | $10,000 | FIXED | One-time fee per new franchise | one_time |
| Corporate Advertising and Development Fund | 1.0% | PCT | Gross Receipts | weekly |
| Cooperative Advertising | N/A | PCT | Gross Receipts | weekly |
| National Media Fund | 4.0% | PCT | Gross Receipts | weekly |
| Audit | N/A | VARIABLE | Cost of audit plus interest on underpayment | one_time |
| Operation of the Franchised Restaurant in Case of Your Default | $125 | FIXED | Per hour plus expenses | weekly |
| Late Fees | 1.5% | PCT | Per month on late payments; also 5% charge on late Continuing Royalty Fee | monthly |
| Supplier/Supplies Approval | N/A | VARIABLE | Reasonable cost of inspection and actual cost of test | one_time |
| General Contractor and Architect Approval | $5,000 | FIXED | Per contractor or architect | one_time |
| Operation of Franchised Restaurant Upon Your Absence, Incapacity or Death | $125 | FIXED | Per hour plus expenses | weekly |
| Monthly Software License Fee and Support Package for Point of Sales System | $395 | FIXED | Monthly fee | monthly |
| Secure Network Fee for Processing of Credit Cards and Transferring of Sales Data | $32 | FIXED | Monthly fee | monthly |
| Back-Up Cellular Service | $30 | FIXED | Monthly fee | monthly |
| Teamworx Software Fee | $54 | FIXED | Monthly fee | monthly |
| Gift Card Program | $10 | FIXED | Monthly fee | monthly |
| Third-Party Delivery Fee | $8 | VARIABLE | Per delivery | one_time |
| Online Ordering Fees | N/A | VARIABLE | $0.2921 per transaction and 3.74% of sale | monthly |
| Third-Party Order Fees | $0 | FIXED | Per third-party transaction | monthly |
| Text Message Fees | $0 | FIXED | Per text message | one_time |
| Transfer Fee | $15,000 | FIXED | Per Franchised Restaurant being transferred | one_time |
| Replacement Training | $2,500 | FIXED | Per trainee | one_time |
| Additional Assistance | $75 | FIXED | Per hour plus expenses | one_time |
| Continuing Education | N/A | VARIABLE | Franchisee and employees' expenses | one_time |
| Maintenance | N/A | VARIABLE | Cost of maintenance | one_time |
| Cost of Enforcement or Defense | $300 | FIXED | Per hour for in-house counsel plus all costs | one_time |
| Relocation Fee | $5,000 | FIXED | Per request plus Company's costs | one_time |
| Bookkeeping/Accounting Fee | $150 | FIXED | Per week | weekly |
| Indemnification | N/A | VARIABLE | All costs including attorneys' fees | one_time |
| Liquidated Damages | N/A | VARIABLE | Average Monthly Royalty and Advertising Fees × lesser of 36 or months remaining | one_time |
Financial performance data as disclosed in FDD Item 19.
| Metric | Value | Unit | Cohort | Period |
|---|---|---|---|---|
| Unit Volume | $1,338,874 | USD | All Traditional Franchised Restaurants | Jan-Dec 2024 |
| Unit Volume | $1,285,259 | USD | All Traditional Franchised Restaurants | Jan-Dec 2024 |
| Unit Volume | $4,131,736 | USD | All Traditional Franchised Restaurants | Jan-Dec 2024 |
| Unit Volume | $472,525 | USD | All Traditional Franchised Restaurants | Jan-Dec 2024 |
Estimated using industry benchmarks for the QSR category. Actual costs vary significantly by location, operator, and market.
| Line Item | Amount | % of Revenue |
|---|---|---|
| Gross Revenue | $1,285,259 | 100% |
| COGS | $-385,578 | 30% |
| Labor | $-359,873 | 28% |
| Occupancy | $-128,526 | 10% |
| Marketing | $-51,410 | 4% |
| Other Costs | $-102,821 | 8% |
| Royalty Fee (franchisor) | $-83,542 | 6.5% |
| Ad Fund Fee (franchisor) | $-51,410 | 4.0% |
| Owner's Profit | $122,100 | 9.5% |
Model your personal financial scenario by adjusting the assumptions below.
Automated risk indicators based on FDD data analysis.
Franchise unit trajectory based on FDD Item 20 data.
| Year | Start | Opened | Closed | Transferred | End | Closure Rate | Net Growth |
|---|---|---|---|---|---|---|---|
| 2022 | 2069 | +301 | -- | 105 | 2361 | -- | +292 |
| 2023 | 2361 | +296 | -- | 96 | 2647 | -- | +286 |
| 2024 | 2647 | +318 | -- | 79 | 2955 | -- | +308 |
How Jersey Mike's compares to peer brands in the QSR category.
Ratio = Investment midpoint ÷ median annual revenue. Lower is better. A 0.5x ratio means the initial investment equals half of one year's gross revenue. Does not account for operating costs, margins, or time value of money.
| Brand | Total Units | Investment Range | Median Revenue | Royalty | Inv/Rev Ratio |
|---|---|---|---|---|---|
| Subway | 19502 | $3K – $630K | No Item 19 | -- | -- |
| McDonald's | 12772 | $1.47M – $2.64M | No Item 19 | 5.0% | -- |
| Dunkin' | 8499 | $527K – $1.83M | $1.43M | -- | 0.8x |
| Domino's Pizza | 7043 | -- | $24K | 5.5% | -- |
| Burger King | 6701 | -- | No Item 19 | -- | -- |
| Wendy's | 5552 | $393K – $2.99M | $2.23M | 4.0% | 0.8x |
| Little Caesars | 3705 | $446K – $1.82M | No Item 19 | 6.0% | -- |
| KFC | 3558 | $135K – $3.77M | $1.27M | 5.0% | 1.5x |
| Papa John's | 3291 | $261K – $853K | No Item 19 | 5.0% | -- |
| Popeyes Louisiana Kitchen | 3177 | $505K – $3.92M | No Item 19 | 5.0% | -- |
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