Jersey Mike's like to bill themselves as "a sub above" - and while they may not be as
healthy as some other chains, the New Jersey-based sandwich chain is clearly getting a lot of
things right.
In fact, Jersey Mike's was the fastest-growing sandwich chain in the United States from 2013
through 2019!
The Jersey Mike's story is hardly a new one, since the company has been making sandwiches
since 1956.
But with 2,000 locations open or under development, the chain is now a hot ticket for potential
franchise investors.
Their brand has been highlighted by business publications such as Forbes as one of the
best-franchise restaurants to buy into, and with 16 percent growth between 2010 and 2017,
it's easy to see why.
So just how much money can a franchise owner expect to rake in?
Well, according to Careerbliss, a Jersey Mike's franchisee can expect to earn an annual income
of around $73,000.
That may be less than the six-figure incomes of franchise owners of chains such as McDonald's
and Five Guys, but it's still higher than what Papa John's franchise owners are pulling
in.
And considering that 70 percent of Jersey Mike's new stores come from existing franchisees,
it's reasonable to believe that a good number of them are indeed making over $100,000 a
year.
Mitch Cohen, a Long Island Jersey Mike's owner, has committed himself and his partners to
opening five locations - though he isn't ruling out more.
Cohen told Forbes:
"Jersey Mike's recognized that developing five locations for development is enough to
work on, and they prefer to have a cautious strategy.
It's the right approach."
Opening a franchise of a popular restaurant is often very expensive, however, and per
the company's website, investors in Jersey Mike's might have to invest anywhere between
$237,419 and $766,971.
That's certainly not cheap, but it's still a lot less expensive than it can take to open
other chains - for example, a person might expect to pay $1 to $2.2 million to open their
own McDonald's branch.
Like with every other restaurant franchise, investors have to pay an initial franchise
fee too, though Jersey Mike's isn't actually that steep compared to other chains.
Investors who want to jump on the burger bandwagon and get a piece of the Five Guys action will
have to pony up $25,000.
Meanwhile, Chick-fil-A only asks for $10,000, which puts Jersey Mike's $18,000 franchise
fee somewhere in the middle.
Potential investors will also need to show Jersey Mike's that they have the net worth
to back up the franchise startup costs.
To do this, franchisees are required to have a net worth of at least $300,000, and $100,000
of that should be in liquid assets.
But by far the most expensive part of opening your own Jersey Mike's is going to be the
building of, or renovation of, the restaurant's building.
The leasehold improvements on an existing property are estimated to cost at least $136,000,
but can be hundreds of thousands of dollars more expensive than that.
The bright side is that, once you have the store built, Jersey Mike's corporate is reportedly
very supportive in making sure new locations succeed.
As Mitch Cohen says:
"The support has been exemplary and hasn't changed from the first location to the third."
Of course, Jersey Mike's doesn't go into business with just anybody.
A quick look at their steps to owning a franchise reveals that it could easily take the better
part of a year to open a store.
Besides the financial vetting and training, the company places a lot of emphasis on community
involvement from its franchisees.
Jersey Mike's states on their website that while it is voluntary, franchise owners are
encouraged to donate 100 percent of their store's earnings on the company's annual day
of giving.
So far, the program has a 100 percent participation rate, and some franchisees end up raising
hundreds of thousands of dollars at their locations alone.
"We love to serve people, it's what we do by nature.
So charity is just an extension of that.
It's very fulfilling."
It's clear that opening your own Jersey Mike's location isn't the easiest task in the world,
and it doesn't come cheap, either.
But from the looks of it, the rewards can make it more than worth the investment.
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