Jersey Mike's Franchise Costs, Fees & FDD

Year Business Began: 1956

Franchising Since: 1987

Headquarters: Manasquan, New Jersey

Estimated Number of Units: 3,130

Franchise Description: The franchisor is A Sub Above, LLC. The franchisor is a subsidiary of Jersey Mike’s Franchise Systems, Inc. (JMFS). The franchisor offers franchises for the establishment, development and operation of restaurant facilities for the on-premises and off-premises consumption of a wide assortment of made-to-order submarine type sandwiches, other sandwiches and related food products and beverages. Restaurants are typically located in retail settings such as strip shopping centers.
Training Overview: The franchisor will train franchisees, if they are an individual, or their controlling principal or designated manager if they are an entity (Trainee 1), the designated assistant manager (Trainee 2), and/or the designated shift supervisor (Trainee 3) before beginning operation of the franchised restaurant. If franchisees are opening their first franchised restaurant, the training requirements are as follows: (1) three individuals (Trainees 1, 2, and 3) must complete Phase 1, (2) one individual (Trainee 1 or 2) must complete Phase 2, and (3) two individuals (Trainees 1 and 2) must complete Phase 3. Additionally, Trainee 1 and Trainee 2 will be required to attend and participate in the grand opening of another restaurant. Phases 1 (180 hours) and 3 (180 hours) consist of on the job training in a restaurant designated by the franchisor for a minimum of eight weeks. If franchisees are a first-time Jersey Mike’s franchisee, they must attend Phase 2 at the franchisor’s training center located in Point Pleasant, New Jersey, or at another location in New Jersey as designated by the franchisor. Phase 2 in New Jersey training consists of a total minimum of 5 days to a maximum of 14 days (5.25 to 10.5 hours per day) of classroom and simulated training. To facilitate the opening of the Jersey Mike’s restaurant, the franchisor will send one of its representatives to the restaurant for a minimum of three calendar days (eight hours per day) during the first month of operation. The franchisor may provide refresher training programs to be conducted at company headquarters or at another location designated by the franchisor.

Territory Granted: Franchisees are granted the right to operate a franchised restaurant at a specific location (“designated area”) described in the Franchise Agreement. As long as the Franchise Agreement is in effect and franchisees are not in default, the franchisor and its affiliates will not enfranchise or operate a company-owned or franchised Jersey Mike’s restaurant, within the franchisee’s designated area as assigned in the Franchise Agreement, with the following exception: The franchisor reserves the right to place company-owned or franchised restaurants at “non-traditional venues,” such as airports, stadiums, and similar locations, within the designated area. The designated area typically comprises a 0.5 to 1 mile radius from the front door of the franchised restaurant. At the franchisor’s sole discretion, the designated area could be smaller if there is a densely populated urban area, a readily definable market area like a resort or boardwalk, a specific facility (stadium, hospital, airport, casino, etc.) or a natural boundary like a body of water, bridge or expressway. Franchisees will not receive an exclusive territory.

Obligations and Restrictions: The Jersey Mike’s franchised restaurant is to be at all times under the direct on-premises supervision of the controlling principal, or a competent employee acting as full-time manager or shift supervisor who has satisfactorily completed the franchisor’s initial training program and has been approved in writing by the franchisor. Franchisees, or the controlling principal (if the franchisee is operating as a business entity), or a manager whom the franchisee has designated and the franchisor has approved, must devote full-time energy and best efforts to the management and operation of the franchised restaurant, unless otherwise approved in writing by the franchisor. Franchisees will offer for sale, use and provide at the franchised restaurant all types of sandwiches and other categories of food products that the franchisor authorizes. Franchisees are prohibited from offering for sale, selling or providing at the franchised restaurant or the premises any other category of products and from using the premises for any purpose other than the operation of a franchised restaurant. Franchisees are prohibited from installing or maintaining on the premises any food racks or other sales and promotional items and materials not authorized by the franchisor, and they are prohibited from installing or maintaining newspaper racks, juke boxes, gum machines, games, rides, vending machines or other similar devices on the premises.

Term of Agreement and Renewal: The length of the initial franchise term is 10 years from the date the Franchise Agreement is signed. If franchisees have complied with all the provisions in the Franchise Agreement, they can renew for one additional term of 10 years.

Financial Assistance: In most cases, the franchisor does not offer direct or indirect financing and does not guarantee a franchisee’s note, lease or obligation. However, as part of the Coach Rod Smith Program, JMFS will provide participants with loans to pay for the capital costs associated with the development of the restaurants. The total amount of financing will vary by location. Candidates for the Coach Rod Smith Program will be managers of existing Jersey Mike’s restaurants nominated by senior management of JMFS. Not all nominees will be granted the right to participate in the Coach Rod Smith Program. JMFS will select individuals in its sole discretion. If franchisees are selected by JMFS for the Coach Rod Smith Program, and they choose to participate, the repayment term for the financing will be five years.

Estimated Initial Investment

Name of Fee	Low	High
Development Fee	$10,000	$10,000
Initial Franchise Fee	$20,000	$20,000
Rent/Lease CAM/Taxes/Lease and Utility Security Deposits	$10,579	$19,848
Architectural Fees	$8,412	$29,827
Leasehold Improvements	$147,495	$658,581
Equipment/Furniture/Small Wares	$138,434	$159,872
Initial Inventory	$13,805	$25,797
Insurance	$4,125	$21,670
Training	$14,299	$27,879
Grand Opening Advertising	$10,000	$10,000
Exterior Signage	$12,087	$38,838
Interior Branding/Graphics	$3,507	$10,419
Uniforms, Office Equipment and Supplies, TVs/Stereo System/Security System	$6,116	$19,458
POS System	$7,500	$15,000
POS System Connection to Private Network	$4,500	$4,500
POS License Fee	$2,000	$4,000
Initial Credit Card Processing Software Fee	$750	$750
Professional Fees (lawyer, accountant, etc.)	$4,577	$28,234
Business Licenses and Permits	$500	$25,000
Additional Funds for 3 Months	$17,490	$32,555
ESTIMATED TOTAL	$436,176	$1,162,228

Other Fees

Type of Fee	Amount
Continuing Royalty Fees	6.5% of gross receipts for a standard franchise agreement.
Grand Re-Opening Advertising	$5,000 for a franchisor-approved location.
Corporate Advertising and Development Fund	Currently 1% of gross receipts.
National Media Fund	4% of gross receipts.
Audit	Cost of audit plus interest on underpayment.
Management Fee	5% of gross receipts collected, plus the franchisor's costs and expenses.
Interest	Highest applicable lawful rate, not to exceed 1.5% per month.
Late Fees	The greater of $25 per instance or 5% of the late payment.
Approval of Alternative Supplier or Product	Actual costs of inspection and testing.
General Contractor and Architect Approval	$5,000 each.
Monthly Software License Fee (POS)	Currently, $395/month (may increase up to $795/month).
Secure Network Fee for Processing of Credit Cards and Transferring of Sales Data	Currently, $39.85/month.
Teamworx Software Fee	$59.99/month (optional).
Gift Card Program	$9.50/month.
Third-Party Delivery Fee	$6.00 - $9.00 per small-order delivery; $29 – $41 per large-order delivery.
Online-Ordering Fees	Currently, $0.2921 per transaction and 3.74% of the sale of each such transaction.
Third-Party Order Fees	Currently, $0.2921 per third party transaction.
Text Message Fees	Currently, $0.025 per text message.
Transfer Fee	$15,000 to transfer the franchised restaurant.
Successor Franchise Fee	$20,000
Replacement Training	Up to $2,500 per trainee.
Additional Assistance	$75 per hour, plus expenses.
Maintenance	Actual cost of maintenance.
Insurance	Cost of premiums paid by the franchisor, plus expenses.
Cost of Enforcement or Defense	All costs including attorneys’ fees. The franchisor’s in-house counsel fee shall be charged at a rate of $300 per hour.
Relocation Fee	$5,000 per request, plus the franchisor's costs.
Indemnification	All costs including attorneys' fees.
Liquidated Damages	Average monthly royalty and advertising fees for the 12 month period before termination multiplied by the lesser of 36 or the number of months remaining in Franchise Agreement.

The above information has been compiled from the FDD of Jersey Mike’s. Year of FDD: 2026.
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