Starting a business can be an exciting and rewarding venture, especially in the food industry. If you have a passion for sandwiches and dream of owning your own restaurant, opening a Jersey Mike’s franchise might be the perfect opportunity for you. However, before diving into the world of submarine sandwiches, it’s important to understand the costs involved. In this article, we will break down all the possible expenses associated with opening a Jersey Mike’s in the United States.
Franchise Fee
One of the initial costs you will encounter when opening a Jersey Mike’s franchise is the franchise fee. The franchise fee for a single unit is $18,500. This fee grants you the right to operate a Jersey Mike’s restaurant and gain access to their established brand, recipes, and support system.
Build-Out and Equipment
Once you have secured a location for your Jersey Mike’s restaurant, you will need to invest in the build-out and equipment. The costs of construction, leasehold improvements, and equipment can vary depending on the size and condition of the space you choose. On average, you can expect to spend around $150,000 to $400,000 on build-out and equipment.
Inventory and Supplies
Stocking up on inventory and supplies is another cost that you need to account for. This includes all the ingredients needed to make Jersey Mike’s signature subs, as well as paper goods, cleaning supplies, and other operational necessities. The estimated cost for initial inventory and supplies is around $20,000 to $50,000.
Training and Support
Jersey Mike’s provides comprehensive training and ongoing support to help you succeed as a franchise owner. The cost for this training program is $9,000, which covers both initial training and continuous support from their experienced team.
Marketing and Advertising
Building brand awareness and attracting customers is crucial for any business. Jersey Mike’s requires franchisees to contribute to a national marketing fund, which is 3% of gross sales. Additionally, you should allocate a budget for local advertising and promotions to drive traffic to your specific location.
Additional Costs
It’s essential to consider other expenses that may arise during the process of opening a Jersey Mike’s franchise. Some of these costs include permits and licenses, insurance, professional fees (such as legal and accounting services), and ongoing royalty fees, which are 6.5% of gross sales.
Summary of Costs
Opening a Jersey Mike’s franchise can require a significant investment, but it provides the opportunity to be part of a well-established brand in the fast-casual dining industry. Here is a summary of the potential costs involved:
Franchise Fee | $18,500 |
Build-Out and Equipment | $150,000 – $400,000 |
Inventory and Supplies | $20,000 – $50,000 |
Training and Support | $9,000 |
Marketing and Advertising | 3% of gross sales |
Additional Costs (permits, insurance, etc.) | Varies |
Royalty Fees | 6.5% of gross sales |
It’s important to note that these figures are estimates and can vary based on various factors such as location, size, and market conditions. To get a personalized budget tailored to your specific circumstances, it is recommended to contact Jersey Mike’s franchise development team.
Opening a Jersey Mike’s franchise can be a fulfilling and profitable business venture. By understanding the costs involved and conducting thorough research, you can make an informed decision and take the first step towards becoming a successful franchise owner. Good luck!