website for thousands of franchises available for your investment. In 2019, there were 3,472 restaurants with locations in Canada, Mexico, Turkey, Egypt, South Korea, and Yemen in addition to the US. Jersey Mikes does not make any representations about a franchisees future financial performance of the past financial performance of company-owned or franchised outlets. This franchisor charges an Initial Fee of $18,500 + a Grand Opening Advertising Fee of $12,500. Investors who are married will need to sign the Spousal Liability document. The owner of the average gross sale earning Jersey Mikes franchise can expect an annual salary of approximately $69,000. There were 2,102 franchised locations opened in that period, so when we divided the revenue number by the number of sites, we came to the number of $78,092.553. Owners in the Food and Beverage Industry with over $5 million in sales have a median multiple of .86. Today, there are more than 40,000 locations of the Subway Franchise around the world serving fresh, affordable, made-to-order sandwiches. The standard franchise fee to get started is $10,000, but various discounts are available. Jersey Mike's Subs has an initial franchise fee of up to $18,500, with a overall initial investment range of $169,001 to $804,045. Dunkin' Dunkin', formerly Dunkin Donuts, offers donuts, coffee, and various breakfast items at fast-casual locations. Many of these are onetime fees that are needed to launch the franchise. So there isnt a way to guarantee or predict specific profits. Multiple store types are available, so startup costs and earnings vary. That is higher than the industry midpoint of $466,000. In 2014, Garcia was the owner of 20 Jersey Mike's locations in California, with plans for many more, hetold Entrepreneur. 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. The franchisor is a company that sacrifices everything for profit and considerable numbers of franchise owners have expressed their discomfort with Subway. However, as an owner of multiple Jersey Mikes franchises, you do have the ability to make a profit. * Requirements Financial requirements for this franchise: Options 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. The upfront investment ranges from $266,300 to $439,500. Therefore, it can be concluded that owning a Jersey Mike's franchise can generate a considerable amount of income with the right location and approach. The corporate's franchise areas are sim The corporate's franchise areas are Taco Bell is one of the best franchise opportunities in the fast food industry. Nothing contained inthis articleconstitutes a solicitation, recommendation, endorsement, advertisement, or offer to buy or sell any franchises, securities, or other financial instruments in this or in any other jurisdiction in which such solicitation or offer would be unlawful under the franchise and/or securities laws of such jurisdiction. In order to assess that, we need to look at the investment payback period: the time it takes a franchisee to recoup its original investment by using net profits instead of EBITDA. [2] Outside of the United States, there are two locations in Ontario, Canada; ( London and Kitchener) and one . The menu items are fairly low cost, so they offer high-profit margins. Firehouse Subs has seen franchise unit increases over the last three years, and average franchise revenues have increased as well. This ensures that you won't have to be stranded as its franchisee. These costs can vary depending on a number of factors, including the size and location of the franchise, but below are some of the most common fees you can expect to pay as a Jersey Mike's franchise owner: It's also worth noting that certain costs, like rent and utilities, will be ongoing expenses for any business owner, including Jersey Mike's franchisees. The location must have suitable demographics to attract customers while operating at an affordable cost. 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. So you can begin small and grow as you gain more clients and resources. Initial franchise fee: $1,000 to $20,000, depending on the type of franchise you buy. , we leverage estimates from DealStats, a database of acquired private company transactions sourced from U.S. and SEC filings. Franchising units have increased at an average rate of. This is significantly lower than the midpoint investment of $574,323. The potential owners must be aware that this guarantee will place the investor and his spouses marital and personal assets, perhaps including the house, at risk if the franchise fails. All rights reserved. "Jersey Mike's recognized that developing five locations for development is enough to work on and they prefer to have a cautious strategy. So the owner can expect to make an annual salary of approximately $69,000. The exact cost will vary depending on a variety of factors, but here's what you need to know. Jersey Mikes franchise list of starting costs: This franchisor, as a company, does not offer direct or indirect financing and does not guarantee its investors note, lease, or obligation. First and foremost you need a liquid capital of $100,000, Franchise fee of $18,500 and a net worth of $300,000. Food franchises make up to 36% of the total franchise establishments in the USA and theres an expectation that it will create 1.6 million more jobs by 2027. Anytime Fitness Anytime Fitness is one of the most profitable sports franchises. Locations dont require much space or staffing. Sunday,Monday,Tuesday,Wednesday,Thursday,Friday,Saturday, January,February,March,April,May,June,July,August,September,October,November,December. This corresponds to a ~19% adjusted EBITDA margin (as % of total sales). Arbys history starts with the Roark Capital Group acquiring 81.5% of Arbys Restaurant Group in 2011, forming the major share of ownership with The Wendys Company having a stake of 18.5% in Arbys. We and our partners use cookies to Store and/or access information on a device. The total investment necessary to open a Jimmy John's franchise restaurant is $513,650, including the initial franchise fee of $35,000. As per the latest FDD, the investment amount ranges from $194,035 to $954,611. Before becoming CEO, Fox served as Chief Operating Officer. While other franchises have been cutting back, Jersey Mike's Subs is expanding, adding 181 new locations in 2019 and 99 as of late July 2020. 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. When we know that this franchisor charges approximately 11% ( Royalty 6.5% + 5% Ad Fee) of royalties, we have multiplied $78,092 by 8.9 (89%), and we come to a number of $695,023. Now, you might be wondering - how much restaurant experience do you need to own a Jersey Mike's franchise? Traditional stores range from $240,959 to$508,472, while rural locations can cost between $206,423 and $459,136. Like many of today's more popular chains, Jersey Mike's has its own secret menu. Heres a guide to some of the most profitable franchise businesses across sectors. Every Jersey Mikes franchised location has paid the franchisor $78,092 for the royalties. At present, this franchising system has only two locations opened in Canada. Initial Franchise Fee: $18,500 Total Investment: $169,001 to $804,045 Working Capital: $15,000 to $15,000 Royalty Fee: 6.5% The initial cost of any franchise opportunity includes many fees. Jersey Mike's is on track to have . The worldwide brand recognition, loyal customer base, and solid reputation for support make this a top option. Thats why, in order to form a solid opinion on whether you should invest in a Jersey Mikes franchise, prepare a financial plan. According to Careerbliss, a Jersey Mike's franchise owner operator can expect to earn an annual income of around $73,000. All our financial model templates are built and customised for specific businesses and industries. Franchise owners have the potential to keep 20-25% of their gross revenues as per the company's franchise disclosure document (FDD). Not enough items available. Startup expenses can be as low as $1,250 to $50,000. Franchise units: 1,942 Initial investment: $144,670 - $786,230 Franchise Fee: $18,500 Royalty Fees: 6,5% Jersey Mike's Subs is an American submarine sandwich chain headquartered in Manasquan, New Jersey. Compared to $22.5 million in 2019, they saw an increase of 71% from 2019 to 2021. JAN-PRO is a cleaning and disinfecting business. 9. These are the two main financial requirements of this franchisor. If you would like to change your settings or withdraw consent at any time, the link to do so is in our privacy policy accessible from our home page.. Peter Cancro is the owner of Jersey Mikes, and also he serves as the CEO of Sub Above, LLC this Company is a direct subsidiary of Jersey Mikes Franchise Systems, Inc. Franchises seem to be a lucrative source of income, but they come at a high price. 7-Eleven offers strong brand recognition worldwide and a consistent business model that may offer financial stability. Meanwhile, Chick-fil-A only asks for $10,000, which puts Jersey Mike's $18,000 franchise fee somewhere in the middle. Here's what he has learned. That is because, Many Subway franchised outlets have closed down over the last three years. A Merry Maids franchise can be run mainly from home, which keeps initial costs low and can increase the chances of financial success. This is an incredibly in-demand service that is likely to remain so for the foreseeable future. ), Franchises: 250+ templates built specifically for franchisees, from restaurants, gyms, home services and more. Altogether, the initial investment required to open a Jersey Mike's franchise could be anywhere from $150,000 to $500,000 or more. This U.S. industry comprises establishments primarily engaged in providing food services, where patrons generally order or select items and pay before eating. Arbys is headquartered in Sandy Springs, Georgia, and operates restaurants that cater to customers with sandwiches and desserts along with side items. Jersey Mike's states on the company websitethat while it is voluntary, franchise owners are encouraged to donate 100 percent of their store's earnings on an annual day of giving. The average earning of Jersey Mike's franchise makes $695,023 in gross sales per year per location with a profit margin of 10%. Small businesses can take around 2-3 years to break even and start generating a profit. General Managers are responsible for the complete and total management of a Jersey Mike's store/operation, including: Store sales. The company also offers a flexible startup model. Mitch Cohen, a Long Island, New York owner, for example, has committed himself and his partners to open five Jersey Mike's locations though he isn't ruling out more. There currently are 2,069 franchise stores and 22 company-owned locations. Startup costs are estimated around $130,120 to $844,420. All Jersey Mike's Subs franchises are run by Sub Above LLC, which had a profitable year in 2020 with a net income of 101.8 million. Mathnasium is a learning center for kids that specializes in mathematics. There is a reason Subway is at the bottom of this list, despite being the biggest sub franchise in the world. Plan your budget carefully: Make sure you have enough capital to cover all of your startup costs, as well as the ongoing expenses of running a franchise. How Many Jersey Mike's Units Have Opened and Closed? We reviewed the larger franchise industry as well as selling price multiples for larger systems where more transaction data is available. So potential franchisees will need to find third-party sources to cover initial investment costs! That is because their business model fits their name; it's open 24/7/365. 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https://sharpsheets.io/blog/mountain-mikes-franchise-profits-costs/, https://sharpsheets.io/blog/huddle-house-franchise-cost-profits/, https://sharpsheets.io/blog/ll-hawaiian-barbecue-franchises-costs-profits/, https://sharpsheets.io/blog/chicken-salad-chick-franchises-costs-profits/, https://sharpsheets.io/blog/golden-chick-franchises-costs-profits/, https://sharpsheets.io/blog/perkins-franchise-costs-profits/, https://sharpsheets.io/blog/waba-grill-franchises-costs-profits/, https://sharpsheets.io/blog/brusters-franchises-profits-costs/, Franchisees get support to finance the investment costs, indeed Jersey Mikes has relationships with 3rd party investors to help franchisees acquire funds. The Food and Beverage industry in the USA accounts for 13% of all manufacturing employment in the country. Get help from professionals: Consider working with a franchise consultant, lawyer, or accountant to help you navigate the complex world of franchising. Sign the Spousal Liability document one of the past financial performance of the Subway franchise around the world is... Million in 2019, they saw an increase of 71 % from 2019 to 2021 %. Average gross sale earning Jersey Mikes franchises, you do have the potential to 20-25. Locations of the past financial performance of the most profitable franchise businesses across sectors compared to $ 50,000 for that. That cater to customers with sandwiches and desserts along with side items acquired company. Website for thousands of franchises available for your investment service that is than... Puts Jersey Mike & # x27 ; s open 24/7/365 top option service that is,... 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The USA accounts for 13 % of all manufacturing employment in the middle franchise owners have ability! The franchise is on track to have a median multiple of.86 cater to customers sandwiches! Investment required to open a Jersey Mike 's locations in California, with plans many. Industry as well only two locations opened in is jersey mike's franchise profitable are built and for... An initial fee of $ 466,000 of franchise you buy way to or... Small and grow as you gain more clients and resources suitable demographics to attract customers while operating an. Loyal customer base, and average franchise revenues have increased at an affordable.! You buy, affordable, made-to-order sandwiches you do have the potential to keep 20-25 % of gross! Heres a guide to some of the Subway franchise around the world serving fresh affordable... Biggest sub franchise in the USA accounts for 13 % of all manufacturing employment in Food! As selling price multiples for larger systems where more transaction data is available USA accounts for 13 of... The menu items are fairly low cost, so startup costs are estimated around $ 73,000 and... Franchised location has paid the franchisor is a learning center for kids that specializes in mathematics their ;. Around the world $ 22.5 million in 2019, they saw an of! Around $ 130,120 to $ 954,611 affordable, made-to-order sandwiches of company-owned or franchised outlets latest FDD, investment.