Starting a business can be an exciting and potentially lucrative venture. If you’re considering opening a sub sandwich franchise in the United States, Jersey Mike’s is a popular choice. However, before taking the plunge, it’s important to understand the costs involved. In this article, we’ll break down all the possible expenses associated with opening a Jersey Mike’s franchise in the USA.
Franchise Fee and Initial Investment
When opening a Jersey Mike’s franchise, the first major cost you’ll encounter is the franchise fee. As of 2021, the franchise fee is $18,500. This fee grants you the right to use the Jersey Mike’s brand, business model, and support system. Additionally, you’ll need to consider the initial investment, which typically ranges from $193,204 to $398,768. This investment includes various expenses like leasehold improvements, equipment, signage, and more.
Breakdown of Initial Investment Costs:
| Category | Estimated Cost |
| Leasehold Improvements | $50,000 – $100,000 |
| Equipment and Fixtures | $100,000 – $150,000 |
| Signage and D̩cor | $20,000 Р$30,000 |
| Initial Inventory | $10,000 – $15,000 |
| Prepaid Expenses and Deposits | $5,000 – $10,000 |
| Insurance | $2,000 – $4,000 |
| Professional Fees | $5,000 – $15,000 |
| Training Expenses | $2,000 – $5,000 |
| Additional Funds (3 months) | $40,000 – $100,000 |
| Total Estimated Investment | $193,204 – $398,768 |
Ongoing Fees and Royalties
Apart from the initial investment, you’ll also need to consider the ongoing fees and royalties associated with owning a Jersey Mike’s franchise. These fees include a royalty fee of 6.5% of gross sales and a national advertising fee of 4% of gross sales. These percentages are based on your monthly sales and are paid to the franchisor.
Additional Costs to Consider
In addition to the initial investment and ongoing fees, there are a few other costs to keep in mind. These include rent or lease payments for your location, utility bills, employee wages, marketing expenses, and other operational costs. It’s crucial to have a detailed business plan and budget in place to estimate these ongoing costs accurately.
Summary
Opening a Jersey Mike’s franchise in the USA involves several costs. The franchise fee itself is $18,500, and the initial investment ranges from $193,204 to $398,768. Ongoing fees include a 6.5% royalty fee and a 4% national advertising fee based on gross sales. Additionally, there are various other expenses such as rent, utilities, wages, and marketing. It’s essential to conduct thorough research and consult with Jersey Mike’s representatives to get a personalized budget for your specific location and circumstances.
For a personalized budget and more detailed information about opening a Jersey Mike’s franchise, contact the Jersey Mike’s corporate team. They will guide you through the process, answer your questions, and provide you with the necessary resources to make an informed decision about your business venture.
