You can open a Jersey Mike’s Subs franchise as a thrilling business opportunity for prospective entrepreneurs who are enthusiastic about the sub sandwich business. Jersey Mike’s was established in 1956 and has developed into a well-known restaurant chain famous for using fresh ingredients and genuine subs. If you’re thinking of investing in a Jersey Mike’s franchise in 2025, it is important to know the financial needs. This article is going to outline the price of opening a Jersey Mike’s Subs franchise in the United States in 2025.
Initial franchise fee
The initial franchise fee is the first significant expense to keep in mind when franchising a Jersey Mike’s store. As of 2025, the initial fee can cost anywhere from $18,500 to $35,000, depending on where you’re going to put it and other details. This fee lets you utilize the name Jersey Mike’s and to utilize their established model, marketing assistance, and training materials.
Startup costs
Aside from the original franchise fee, you will need to pay several startup expenses. The expenses will differ considerably by location, store size, and local property prices. The startup expenses of a Jersey Mike’s franchise are together between $250,000 and $500,000. Below is an explanation of some of the main elements of these expenses:
- Real estate: Preleasing a space is among the most costly. You may need to prepay rent or pay an advance under your agreement.
- Construction and renovation: Based on what condition you leave it in, you’ll be shelling out cash for building-outs or renovation to install in it for the Jersey Mike needs. It can set you back from $100,000 to $200,000.
- Equipment and fixtures: You will also have to purchase kitchen equipment, furniture, and fixtures that will cost you another $50,000 to $100,000 in starting capital.
- Inventory: Filling your store with new ingredients and supplies will also cost you an initial investment. Set aside $10,000 to $15,000 as initial inventory.
Ongoing costs and royalty fees
Once the initial investment, it is crucial to weigh the ongoing expenses of operating a Jersey Mike’s franchise. They are:
- Royalty Fees: Jersey Mike’s usually levies a royalty fee of 6% of your total sales. It finances the brand’s marketing and operational support.
- Advertising Contributions: In addition, you could be required to make an advertising contribution of a percentage (approximately 4%) of your gross sales into a national advertising fund. This is accomplished to promote the Jersey Mike’s name and bring traffic to your establishment.
Working capital
Aside from the initial capital and recurring expenses, you will also require adequate working capital to pay your operating expenses in the initial few months of operations. It is recommended that you put aside $50,000 to $100,000 to fund your payroll, electricity, and other expenses until the business starts yielding profits.
Financing options
If the total investment appears overwhelming, there are several financing alternatives you can use to assist you in raising the capital you require:
- SBA loans: The Small Business Administration (SBA) has loan programs for franchise businesses that can be used to finance startup expenses.
- Traditional financing: Banks and credit unions also provide loans to open a franchise. A well-written business plan will improve your chances of getting funded.
- Franchise-specific financing: Certain franchisors have lending arrangements with banks or provide financing to franchisees. It’s pleasant to ask about these possible sources.
Franchising a Jersey Mike’s Subs in the U.S. in 2025 calls for carefully planning the money and knowing what the money is spent on. With a starting investment which can cost between $250,000 and $500,000 and continuing royalty and advertising costs, the would-be franchisees should be ready for the financial investment. But with the right location, proper operation of business, and dedication to quality subs, such an investment can bring a rewarding and profitable venture.
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