This statistic shows the sales of Jersey Mike's Subs in the United States from 2014 to 2021. Jersey Mike's bills itself as "a sub above" and while they may not be as healthy as Subway, the New Jersey-based sandwich chain is clearly doing a lot of things right. Today, there are more than 40,000 locations of the Subway Franchise around the world serving fresh, affordable, made-to-order sandwiches. That is a growth rate of almost 40%. The stores out here in the Bay Area are essentially non profit organizations lmao, they can't keep franchise owners because there's no money to be made, the work load is absurd, and they can't keep employees. All the stats: startup costs, profits, breakeven and more, 5-year financial projections built with the FDD. Mitch Cohen, a Long Island, New York owner, for example, has committed himself and his partners to open five Jersey Mike's locations though he isn't ruling out more. Jersey Mikes does not make any representations about a franchisees future financial performance of the past financial performance of company-owned or franchised outlets. It was founded by brothers Chris and Robin Sorenson, who come from a line of police officers and firefighters and previously served as firefighters themselves. All our financial model templates are built and customised for specific businesses and industries. The average profit of a Jersey Mike's Franchisee is $50,000 - $200,000 per year. Arbys is owned by Inspire Brands and got renamed Arbys Restaurant Group, Inc. (ARG). 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. Their popular menu items include the Barbecue Cuban Sub, Italian Sub, and Hook and Ladder Sub. * Requirements Financial requirements for this franchise: Options RELATED: Jersey Mike's sales help provide health care . But if you're looking for a great fast-food franchise, then Jersey Mike's is a great option. So the owners salary can be less or higher than our prediction; it will depend on the location and managerial skills of the franchisee. Over the last three years, the company has been expanding. A Sub Above, LLC., doing business as Jersey Mike's Subs, is an American submarine sandwich chain headquartered in Manasquan, New Jersey. Breaking even and turning a profit in a business takes time and careful planning. Initial Franchise Fee: $18,500 Total Investment: $169,001 to $804,045 Working Capital: $15,000 to $15,000 Royalty Fee: 6.5% The initial cost of any franchise opportunity includes many fees. The Real Price of Pouring Pints: Beer Bar Startup Costs, From Dreams to Reality: Starting a Boutique Hotel on a Budget , Crunching Numbers: Coal Mining Startup Costs. 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. Locations dont require much space or staffing. In this company Franchise Disclosure Document is included the independent auditors report of Sub Above, LLC ( owner of this brand), so we extracted all information about Jersey Mikes revenue per store from it! The annual growth rate in the industry is around 2% and the EBITDA multiplier is around 3x for a single restaurant. Jersey Mikes operated under the name Mikes Submarines from 1956 to 2002 and then changed its name to Jersey Mikes. It has no duty to award you a franchise. The Franchise Disclosure Document or FDD for Jersey Mike's is a legal document which is presented to prospective buyers of franchises in the pre-sale disclosure process in the U.S. Download the latest FDD for the Jersey Mike's franchise here. At the age of 17, when he graduated high school, he bought the storefront and became the owner of Mike Subs. This is longer than other franchise opportunities. Investors must be aware that by signing a Franchise Agreement, except for paying the Company an initial non-refundable initial franchise fee of $18,500, they will need to pay the Grand Opening Advertising Fee, which is $12,500 + Real Estate / Construction Fee in the amount of $5,000. 9. Moreover, this is an indication that the franchisees were not performing well, especially during the pandemic, when there was a net loss of. Compared to $22.5 million in 2019, they saw an increase of 71% from 2019 to 2021. Multiples can go up to 7x for 5+ restaurants. That is because we do not think a Subway franchise is a good investment at all. JMFS was the former franchisor of the JERSEY MIKE'S franchise system before the closing of the 2019 Securitization Transaction. How much does a Jersey Mike's franchise cost? You are going to upgrade your subscription.This action will proceed the difference in cost of plans and reset subscription period after moneyback. How do we estimate Jersey Mikes franchise owner salary per year? And there are multiple revenue streams available. Although this seems a small investor must be aware that this amount of profit is the standard one for the franchising industry. On the last Wednesday, in March, Jersey Mike's franchisees donate 100% of their day's receipts to charity each market chooses. In 2018, ARG took over the ownership of Buffalo Wild Wings. Theres also a high demand for cleaning services from both residents and businesses. When we know that this franchisor charges approximately 11% ( Royalty 6.5% + 5% Ad Fee) of royalties, we have multiplied $78,092 by 8.9 (89%), and we come to a number of $695,023. Founder and CEO A Message from Peter Cancro: Franchising With Jersey Mike's Share Watch on Call us at 732-292-8272 or email us at franchise@jerseymikes.com Get Started Now Continue Reading Some of these include: In conclusion, restaurant experience is not a prerequisite for owning a Jersey Mike's franchise. By leveraging these resources effectively, you can help minimize costs and maximize profits over the long term. Jersey Mike's states on the company websitethat while it is voluntary, franchise owners are encouraged to donate 100 percent of their store's earnings on an annual day of giving. 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. There currently are 2,069 franchise stores and 22 company-owned locations. In 1987, he began franchising the business and since then he has expanded the Jersey Mikes Franchise to 2000+ locations across the United States. It is classified as operating in the Full-Service Restaurants industry. The exact costs vary by state and circumstances. Franchise around the world serving fresh, affordable, made-to-order sandwiches. Firehouse Subs has seen franchise unit increases over the last three years, and average franchise revenues have increased as well. Description. So potential franchisees will need to find third-party sources to cover initial investment costs! There is a wide range for an individual franchise. Jersey Mikes Franchise Restaurant offers a wide assortment of made-to-order submarine-type sandwiches, other hot sandwiches, and related food products and beverages for on- premises and off-premises consumption. 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. Jersey Mike's Franchise Costs & Fees 2019. Jersey Mike's is an thrilling enterprise alternative that provides an easy and profitable restaurant franchise idea. So far, the program has a 100 percent participation rate and in just three years, Garcia's locations alone raised$350,000 dollars for various community groups. 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. Jersey Mike's is one of the fastest-growing franchises in the United States. The Royalty Fee is 6.5% of Gross Receipts, payable weekly. Franchise owned: 20 Southern California Jersey Mike's Subs locations in Rancho Cucamonga, Fountain Valley . Currently, the following states regulate the offer and sale of franchises: California, Hawaii, Illinois, Indiana, Maryland, Michigan, Minnesota, New York, North Dakota, Oregon, Rhode Island, South Dakota, Virginia, Washington, and Wisconsin. Jersey Mike's Franchise Systems, Inc. - Products and Services Sandwich & Sub Store Franchises in the US Of the 4 core revenue-generating products and services in the Sandwich & Sub Store Franchises in the US industry, Jersey Mike's Franchise Systems, Inc. offers: Full service Meals dispensed without table service for consumption on premise Typically, small businesses take around 2-3 years to break even and start making a profit. The total investment necessary to open a Jimmy John's franchise restaurant is $513,650, including the initial franchise fee of $35,000. They began offering franchises for Jersey Mike's restaurants in December 2019. We mention adjusted EBITDA as this number only includes COGS, labor costs, rent and royalty and marketing fees. Stay up-to-date here on the latest news, announcements and events taking place during the week-long celebration of small business. Please note we used industry average for COGS and labor costs (which the Franchise Disclosure Document doesnt disclose) so its possible that these costs are actually lower. 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