Jersey Mikes
Jersey Mike's offers franchises for making and selling made-to-order submarine sandwiches and related foods. Known for fresh ingredients and thin-sliced meats, it operates in the quick-service restaurant sector.
About Jersey Mikes
A Sub Above, LLC, doing business as Jersey Mike's Subs, is an American multinational submarine sandwich chain headquartered in Manasquan, New Jersey. The Jersey Mike's franchise has about 3,500 locations, with locations in the United States, Canada, and elsewhere.
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Jersey Mikes franchise FAQ
How much does it cost to open one — the total initial investment?
The total initial investment necessary to begin operation of an individual Jersey Mike's Franchised Restaurant ranges from $181,903 to $1,413,592. This includes a mandatory payment of $42,500 to $44,500 to the company [p.1].
What is the initial franchise fee?
The initial franchise fee varies depending on whether you sign a Single-Unit Franchise Agreement or an Area Development Agreement. For single-unit agreements, the initial franchise fee is non-refundable and must be paid in full at the time of execution [p.153]. If you sign an Area Development Agreement for 3 to 9 JERSEY MIKE'S franchises, there is no initial franchise fee due when signing individual Franchise Agreements, but a development fee ranging from $50,000 to $120,000 must be paid upon signing the Area Development Agreement [p.25]. For each additional franchise location under an Area Development Agreement, an initial franchise fee of up to $6,000 per location is due when you sign the franchise agreement for that location [p.28].
What are the ongoing royalty and advertising fees?
The franchisee must pay a weekly continuing service and royalty fee based on gross sales, as defined by the franchisor. Additionally, you must contribute 1.0% of your Gross Receipts to the Corporate Advertising and Development Fund, which can be increased up to 6% upon 90 days' notice. Contributions to the Cooperative Advertising Fund are optional currently but may become mandatory in the future under similar conditions. The total contributions across all funds will not exceed 6% of your Gross Receipts. [p.21, p.23]
How long is the initial franchise agreement, and can I renew it?
The initial term of the franchise agreement is not specified in the excerpts. However, you have the option to renew the franchise for one additional term of ten years upon fulfillment of certain conditions [p.90].
Can I sell or transfer my franchise, and what does that require?
You cannot sell or transfer your franchise without the franchisor's prior written consent, except for certain ownership interest transfers among original principals of a business entity which do not result in a controlling interest change [p.122]. The franchisor may refuse to permit such transfers for good cause [p.5], and any advertisement related to selling or transferring the franchise must be approved by the franchisor in writing [p.119].
On what grounds can the franchisor terminate the agreement?
This isn't specified in the excerpts.
What financial requirements — net worth and liquid capital — do I need to qualify?
The franchisor's most recent financial statements must show a net worth of at least $100,000 if they are unaudited. Additionally, you must maintain sufficient working capital reserves as required by the franchisor from time-to-time [p.104]. The specific amount of liquid capital is not detailed in these excerpts; however, you will need to ensure compliance with any working capital requirements set by the franchisor [p.6, p.104].
Do I get an exclusive or protected territory?
No, you do not receive an exclusive territory. You may face competition from other franchisees and outlets owned by the Company and its affiliates within your Designated Territory [p.51, p.53]. This applies whether or not you sign an Area Development Agreement [p.10].
What training and ongoing support does the franchisor provide?
The franchisor provides initial training for the franchisee or their Controlling Principal, as well as for designated managers and shift supervisors [p.35]. This training occurs at the franchisor's headquarters or designated locations and is provided free of charge, though expenses like travel, room and board, and employee salaries are the franchisee’s responsibility [p.108]. The franchisor also offers ongoing training as deemed necessary and reasonable [p.108].
How many franchised outlets are there, and how many have closed or been terminated?
This isn't specified in the excerpts. The provided FDD does not give a specific number of current franchised outlets or those that have closed or been terminated.
Does the franchisor share any financial performance or earnings information?
The franchisor may provide actual records of an existing restaurant if a franchisee is purchasing one, but it does not make any representations about future financial performance for new franchises. Additionally, written substantiation can be provided upon request [p.66]. However, the franchisor does not authorize its employees or representatives to make such representations either orally or in writing [p.66].
What am I restricted to selling, and where must I buy supplies?
You are not specifically restricted to selling only certain items, but you may be required to purchase certain goods and services from designated vendors. For example, you must offer Pepsi beverages and Frito Lay snacks, and you must purchase private and proprietary items like Company's private-label meats and cheeses from specified suppliers [p.29]. Additionally, you are required to adequately supply the restaurant with an assortment of ingredients and maintain a sufficient inventory as per Company’s requirements [p.29]. This isn't specified in the excerpts for selling restrictions beyond what is mentioned for proprietary items.