Jersey Mike's Franchise
Cost, fees, owner earnings, closure rate and litigation for a Jersey Mike's franchise — pulled from the franchisor's own public FDD (2026), not its sales material.
Disclosure honesty
Jersey Mike's discloses earnings (Item 19) — but the grade is how honestly. We graded it B.
What their own earnings claim actually says
2,606 Traditional Franchised Restaurants; average unit volume $1,367,578; median $1,305,850; 44% met/exceeded average. Historical data only; no assurance of individual results.
What a Jersey Mike's franchise actually costs to run
| Fee | Disclosed | Where it comes from |
|---|---|---|
| Initial franchise fee | $20,000 | Item 5 — paid up front, before you open |
| Royalty | 6.5% of gross sales | Item 6 — charged on revenue, not profit |
| Advertising fund | 5% of gross sales | Item 6 — brand marketing, spent at the franchisor's discretion |
| Total recurring fees | 11.5% of gross sales | Before rent, labor, food or debt service |
| Total initial investment | $436,176 – $1,162,228 | Item 7 — franchisor's own low/high estimate |
6.5% royalty + 5% advertising (1% corporate + 4% national media); $4,500 POS connection + $2,000-$4,000 POS license; $750 credit card software fee.
Royalty and ad-fund percentages are charged on gross sales — an owner pays them whether or not the location is profitable.
Jersey Mike's system size and owner turnover
| Total outlets | 3,227 |
| Ceased operations | 13 |
| Terminated by franchisor | 0 |
| Transferred to new owners | 218 |
| Closure rate | 0.4% of outlets |
13 ceased operations in 2025; 0 terminations; 218 transfers indicate portfolio turnover.
From Item 20 of the FDD 2026. Terminations and ceased operations are the franchisor's own count of owners who stopped — the number the sales pitch leaves out.
Is Jersey Mike's worth it? — how it compares to 22 similar franchises
| Ongoing fees | 11.5% of sales | steeper than 95% of sandwich & sub shops franchises |
| Startup cost | from $436,176 | about average (median $436,176) |
| Disclosure honesty | Grade B | more honest than 70% of sandwich & sub shops franchises |
| Closure rate | 0.4% of outlets | better than most (median 1.2%) |
| Disclosed lawsuits | 3 | more litigious than 61% of peers |
Benchmarked against every sandwich & sub shops franchise we've graded from public FDDs — the context the franchisor's pitch never gives you.
Owner take-home for a Jersey Mike's
The franchisor's framing: 2,606 Traditional Franchised Restaurants; average unit volume $1,367,578; median $1,305,85… We reconstruct what an owner actually keeps, from their own FDD.
- Reconstructed owner P&L — net take-home after royalty, ad fund, rent, labor & debt
- Break-even timeline + cash-on-cash ROI
- Full fee stack + required-purchase markups
- Decoded real failure / closure rate
- How it ranks vs comparable franchises
- Validation-call playbook — the exact questions to ask
See a full sample report → · 30-day guarantee
Jersey Mike's franchise — frequently asked
- How much does a Jersey Mike's franchise cost?
- The FDD lists a total initial investment of about $436,176–$1,162,228, including a $20,000 initial franchise fee.
- How much do Jersey Mike's franchise owners make?
- 2,606 Traditional Franchised Restaurants; average unit volume $1,367,578; median $1,305,850; 44% met/exceeded average. Historical data only; no assurance of individual results. We grade this disclosure B for honesty.
- What are the Jersey Mike's franchise fees?
- Jersey Mike's's FDD discloses a $20,000 initial franchise fee, a 6.5% royalty on gross sales, a 5% advertising-fund contribution, for roughly 11.5% of gross sales in recurring fees before rent, labor, or debt service. 6.5% royalty + 5% advertising (1% corporate + 4% national media); $4,500 POS connection + $2,000-$4,000 POS license; $750 credit card software fee.
- What is the Jersey Mike's franchise profit margin?
- Jersey Mike's does not publish a franchisee net-profit margin — almost no franchisor does. What Item 19 actually shows: 2,606 Traditional Franchised Restaurants; average unit volume $1,367,578; median $1,305,850; 44% met/exceeded average. Historical data only; no assurance of individual results. Recurring fees alone take about 11.5% of gross sales, before rent, labor, food or debt service. Margin has to be reconstructed from the disclosure, not read off it.
- What is the Jersey Mike's franchise failure rate?
- 13 ceased operations in 2025; 0 terminations; 218 transfers indicate portfolio turnover.
- How many Jersey Mike's locations are there?
- Jersey Mike's's FDD reports 3,227 total outlets, with 13 that ceased operations in the most recent reporting year and 218 transferred to new owners. Item 20 is where system health shows up before the marketing does.
- Does Jersey Mike's have complaints or lawsuits?
- Jersey Mike's discloses 3 legal matters in Item 3 of its FDD. Item 3 covers the franchisor's litigation history, which is the closest thing to a public record of how it treats franchisees — read the case descriptions, not just the count.
- Is a Jersey Mike's franchise worth it?
- It depends on the numbers, not the pitch. Jersey Mike's scores B on disclosure honesty, carries about 11.5% of sales in ongoing fees, and discloses 3 legal matters. Get the real owner take-home before you sign.
Own a Jersey Mike's? Add your real numbers (anonymous)
We publish only aggregated benchmarks — never your name. Contribute and we'll show you how your numbers compare.
Compare Jersey Mike's to similar franchises
See all franchises ranked by disclosure honesty →
Source: MN CARDS 35938-202604-11 (Clean FDD 2026). FranchiseValidate is independent and not affiliated with Jersey Mike's or its franchisor. Figures are extracted from the franchisor's own public disclosure document; verify against the current FDD before any decision.