of all manufacturing employment in the country. This network would sell for $9,021,804. Dec 17, 2015, 1:40 PM. 2018 - Present5 years. Franchise around the world serving fresh, affordable, made-to-order sandwiches. Of the franchised outlets, the vast majority (over 1,000) were traditional restaurants, as opposed to end-cap strip mall restaurants with a drive-thru or free-standing restaurants with a drive-thru. The company's locations are small and don't require a huge staff. A few examples include JAN-PRO, Dream Vacations, and Jazzercise. A typical restaurant from this brand operates in a retail shopping center of approximately 1,000 to 2,000 square feet. Just this year, Jersey Mike's raised more than $6 million for more than 170 charities across the nation. However, as an owner of multiple Jersey Mikes franchises, you do have the ability to make a profit. There is a reason Subway is at the bottom of this list, despite being the biggest sub franchise in the world. Indeed, in order to assess whether this sandwich chain is a good investment from a financial standpoint, you must read between the lines in their Franchise Disclosure Document. An example of data being processed may be a unique identifier stored in a cookie. There are many factors to consider when evaluating possible franchise opportunities. Jersey Mikes is a sub shop that is one of the fastest growing franchises in the food service industry. So you can begin small and grow as you gain more clients and resources. In 2014, Garcia was the owner of 20 Jersey Mike's locations in California, with plans for many more, hetold Entrepreneur. There is no way to guarantee profits to prospective franchisees. The following estimated investment information is further explained in our 2020 Franchise Disclosure Document. Other factors such as customer satisfaction, employee engagement and market share are also critical indicators to track. Sunday,Monday,Tuesday,Wednesday,Thursday,Friday,Saturday, January,February,March,April,May,June,July,August,September,October,November,December. The following estimated investment information is further explained in our 2020 Franchise Disclosure Document. Copyright 2023 FinModelsLab. . Such as the Franchised Stores size, geographic location, menu mix, and competition in the marketplace. Here is what you must be aware of: You would need to invest $574,323 on average to become a Jersey Mikes Subs franchisee. But there are other ways to generate revenue as well, like personal training. How Much Jersey Mike's Franchise Owners Really Make Per Year. This is a good indication of high growth as a company's overall. In 2021 the franchisor earned $164,150,548 of revenue from service and royalty fees collected from franchisees. This corresponds to a ~19% adjusted EBITDA margin (as % of total sales). A Sub Above, LLC., doing business as Jersey Mike's Subs, is an American submarine sandwich chain headquartered in Manasquan, New Jersey. So the owner can expect to make an annual salary of approximately $69,000. Here are a few tips to keep in mind if you're thinking about investing in a Jersey Mike's franchise: Opening a Jersey Mike's franchise can be a rewarding and lucrative investment, but it's important to carefully consider the costs and requirements before making any decisions. Assistant Manager ($22-25/hr + 1-3% Profit Sharing) The Jersey Mike's franchise has 1,942 locations open and many more in development across the United States each week. Heres our breakdown from sales to profits: Even though Jersey Mikes has a ~26% adjusted EBITDA margin as per our calculations, it doesnt tell us much about whether its a good investment. Required fields are marked *, Please note, comments must be approved before they are published. The Jersey Mike's story is hardly a new one since they've been making sandwiches since 1956, but with 2,000 locations open or under development, it's obviously a hot ticket for potential franchise investors (via Jersey Mike's). They can change franchise fees and give a discount for veterans. As a Jersey Mike's franchise owner, you can expect to receive comprehensive initial training, on-site training, ongoing support, marketing support, and technology support. Cancro used the money. Banking on Co-Operation? Connect with me: Linkedin | Reddit | Twitter. Here's what he has learned. In summary, as a Jersey Mike's franchise owner, you can expect to receive comprehensive training and ongoing support to help you succeed. 5-year financial projections including profits, breakeven and more, SharpSheets is a trading name of RGMS LLC, registered at 1309 Coffeen Avenue, Sheridan, WY 82801, USA, Copyright 2023 RGMS LLC - All rights reserved. As Jersey Mikes Subs do not disclose sales per restaurant in its Franchise Disclosure Document, we derived the amount by dividing total franchise sales ($2 billion) by the total number of franchises (2,069). Renting or buying a property could cost anywhere from $3,000 to $15,000 per month. Every Jersey Mikes franchised location has paid the franchisor $78,092 for the royalties. These businesses generally provide proven systems that can increase the chance of profitability. The business provides a variety of products to appeal to people across demographics. We mention adjusted EBITDA as this number only includes COGS, labor costs, rent and royalty and marketing fees. When we add up all Jersey Mikes franchise ongoing royalties together, we come to 11.5% of the gross receipts that the franchisee will need to pay. Jersey Mike's provides comprehensive support to its franchisees through a variety of ways. 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. For example, your store may have higher sales due to its location, size, etc. Other Expenses: Advertising, marketing, insurance, and accounting services are expenses that need to be paid by the franchise owner. Jersey Mikes competes in the sandwich market against big brand companies such as Subway. All rights reserved. As per the latest FDD, the investment amount ranges from $194,035 to $954,611. 9. Anytime Fitness is a popular gym brand with a low-cost investment and high revenue potential. However, initial expenses generally range from $98,350 to $303,000. And the winner, with a founder who isn't named Mike Jersey Mike's Subs is growing like a weed. The estimated initial investment for developing a Jersey Mike's franchise breaks down as follows: Call us at 732-292-8272 or email us at franchise@jerseymikes.com The estimated total investment necessary to begin the operation of a Jersey Mikes Franchise ranges from $194,035$954,611. A solid business acumen and management skills will be necessary to capitalize on the full income potential of a Jersey Mike's franchise. ): Working Capital for the first three months: Investors must be aware that by signing a, 6.5% of the gross receipts an ongoing expense, 4.0% of gross receipts an ongoing expense. Dunkin' Dunkin', formerly Dunkin Donuts, offers donuts, coffee, and various breakfast items at fast-casual locations. The current CEO, Peter Cancro, started working at Mikes Subs in 1971 at the age of 14. Here are a few that offer consistently high revenue. And average gross sales across franchises fall at nearly $2 million. Jersey Mikes does not make any representations about a franchisees future financial performance of the past financial performance of company-owned or franchised outlets. Most McDonalds franchisees start by purchasing an existing location from McDonalds or another franchise operator. . The Food and Beverage industry in the USA accounts for 13% of all manufacturing employment in the country. Tutoring and educational businesses like this have gained significant popularity in recent years. Altogether, the initial investment required to open a Jersey Mike's franchise could be anywhere from $150,000 to $500,000 or more. Breaking even and turning a profit in a business takes time and careful planning. This promotion is in no way sponsored, endorsed or administrated by, or associated with, TikTok. The initial investment varies depending on the location and financial considerations in a given area. Description. Based on the data from 2020, it could take you up to 12 years to recoup your initial Subway franchise investment. Like many of today's more popular chains, Jersey Mike's has its own secret menu. Theres a class owner franchisee, who runs the business side, and a teacher franchise, who buys into the business but simply runs the classes. Jersey Mike's Franchise Restaurant offers a wide assortment of made-to-order submarine-type sandwiches, other hot sandwiches, and related food products and b. Of course, these numbers are based on averages, as we discussed earlier. Jersey Mike's. This is a chain of sub sandwich style restaurants that highlights tasty beefs, bacons, turkey breast and much more. It's important to research the area where you want to open a franchise and speak with a franchise development representative for detailed information. The standard franchise fee to get started is $10,000, but various discounts are available. 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. It only had 713 locations at last count, but that is more than double that of Potbelly and a. As there has been a growth in Arbys presence during the pandemic period, the brand of the company surely has an acceptance. There were 1,360 Jersey Mike's joined in the fundraising campaign this year. So the owners salary can be less or higher than our prediction; it will depend on the location and managerial skills of the franchisee. Many Subway franchised outlets have closed down over the last three years. Mac Tools is a mobile franchise that sells tools out of a truck. * Requirements Financial requirements for this franchise: Options The exact profits of each franchise vary widely by market, location, size, and various other factors. Jersey Mike's has restrictions on where you can open a franchise, including territorial rights, demographics, and site selection. 5. The corporate's franchise areas are simple-to-run, fast-casual sandwich eating places, needing only a restricted variety of staff and a minimal quantity of apparatus. And theres potential to grow your business over time by increasing the size of your team so you can accommodate more clients. This franchisor charges an Initial Fee of $18,500 + a Grand Opening Advertising Fee of $12,500. That gives us an Average Unit Volume of $1,049,047 per location. Those new franchise investors stand to make a good income too if they can make the Jersey Mike's cut. Moreover, this is an indication that the franchisees were not performing well, especially during the pandemic, when there was a net loss of. Jersey Mike's Franchise Costs & Fees 2019. This ensures that you won't have to be stranded as its franchisee. A chain with more than. Another 260 locations will be opened soon. It is a perfect blend of talent, trust, teamwork, and a shared vision. But a franchise owner in the right market can earn that back and more with significant ongoing revenue. Because Sub Above LLC was only given financial data for one single week in 2019 and was no longer the franchisor, there is a significant difference in net incomes between 2019 and 2020. Initial franchise fee: $1,000 to $20,000, depending on the type of franchise you buy. Between 2019 and 2021, Jersey Mikes has seen its total unit count rise from 1492 to 2091. Franchise Disclosure Document (FDD) Database, Rent/Lease CAM/Taxes/Lease and Utility Security Deposits, Transportation, Hotels, Restaurants, Staff Salaries, Uniforms, Office Equipment and Supplies, TVs/Stereo System/Security System, Company owned restaurant and product revenue, Selling, advertising, general and administrative. Estimated initial investment: $1,000 to $768,000. Anytime Fitness Anytime Fitness is one of the most profitable sports franchises. [2] Outside of the United States, there are two locations in Ontario, Canada; ( London and Kitchener) and one . And its likely to be a fairly consistent money maker going forward. This keeps startup expenses and ongoing costs relatively low, increasing the chances of achieving high profitability. "Jersey Mikes Subs," "Jersey Mikes," and "Mikes Way" are registered trademarks of A Sub Above, LLC. Unveiling the Taverna Launch Costs: Ready to Invest? Potential investors will need to show Jersey Mike's that they have the net worth to back up the franchise startup costs. "Small Business Trends" is a registered trademark. Food and drink may be consumed on-premises, taken out, or delivered to the customers location. ). Alvaro Garcia epitomizes the proverbial American dream. 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