Jersey Mike’s Franchise Cost: Investment Breakdown & What to Expect in 2025

Entering a Jersey Mike’s sub shop can feel reminiscent of entering a friendly and familiar place. The scent of baked bread, the noise of the sandwich slicers chopping, and the feeling you get when a seemingly cheerful staff member welcomes you give you a sense that you are stepping into something more than just a lunch destination; it is an operation that lives and breathes care, and consistency. If you’ve thought about owning a store, you’re not alone! Jersey Mike’s has increased its in-store count each year, and many aspiring business owners are wondering how much it costs to open a Jersey Mike’s franchise in 2025.

So, let’s get into it – everything you need to know about the various costs to open a Jersey Mike’s franchise, including the initial investment and initial fees, what you can expect in terms of profit, and the support that the franchise will offer its franchisees. This is everything you need to know in plain language, not in technical language. We will tell the story like you are listening to a friend or colleague who has gone through the same process.

Why So Many People Are Interested in Jersey Mike’s

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When considering food franchises, Subway, Jimmy John’s, Firehouse Subs, and, of course, Jersey Mike’s are among the first companies that come to mind. Jersey Mike’s is different, though, because it’s a food franchise that traditionally prepares your food. They slice the meat fresh and prepare the sandwich in front of you, and the service is delivered with a very familiar and friendly tone. There are no gimmicks, just a great product.

Because Jersey Mike’s cares about the quality of their product, it has built a following. The teenagers that stop by for lunch after school and the busy professional on lunch all have an affinity for Jersey Mike’s, and that is an innate reason Jersey Mike’s has real appeal for a broad-reaching consumer base and in terms of the story of that appeal is meaningful in the minds of potential new franchisors.

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So, How Much Does Jersey Mike’s Franchise Cost?

Jersey Mike's Franchise Cost

Let’s get to the main question – what is the total cost to open a Jersey Mike’s franchise in 2025? While the exact cost will depend on your location, space, and whether you lease or buy, most franchisees can expect a range of investments from $215,000 to $790,000 for opening a single location.

And that’s quite a range; some of the variability isn’t entirely due to the sandwiches. A significant portion of your investment is in the property, including renting, building, remodeling, and equipping the store. If you’re in a busy urban location, you likely find yourself toward the higher end of that range. If you’re in a small town or a suburban strip mall, it may have a lower upfront cost, but it may take longer to build foot traffic to the store.

Breaking Down the Investment

The first fee you will need to understand will be the franchise fee, which is currently $18,500. This is a one-time fee that grants access to Jersey Mike’s, including training and all necessary support. Think of this fee as purchasing a key to a fully functioning machine that is proven to work, allowing you to open and operate it.

Upon paying the franchise fee, there are several additional fees or costs to consider. The build and construction typically represent a significant portion of the costs. Most stores will be able to leave with new floors, food service equipment, custom counters, custom signage, and modifications to their layout. This build phase can typically net between $150,000 and $400,000, depending on how clean the location was when someone obtained their lease.

Then there are the items and images—refrigerators, slicers, ovens, grills, point-of-sale systems, prep tables, chairs, and everything a shop needs to get up and running. Equipment image costs typically range from $80,000 to $150,000.

You will also need to account for inventory costs. You cannot just open the doors with nothing in your cooler and shelves. The first order of meats, cheeses, bread, drinks, and any other supplies is probably going to net somewhere between $10,000-$15,000 in inventory to start the life of your store.

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Training, Travel, and Time Commitments

What often astounds first-time franchisees is the amount of time and effort that training consumes. Jersey Mike’s wants its owners to be invested and actively engaged, particularly when opening new stores. Jersey Mike’s offers a comprehensive six- to eight-week training program that encompasses everything from meat slicing and customer service to employee management and business operations.

Training occurs at either a storefront location or corporate headquarters and will require you to budget for travel and accommodation costs. However, it is a distinct advantage to begin your business with an understanding of how to run it, recruit and train employees, and be prepared for customer-facing day-to-day operations.

Ongoing Fees: What You’ll Pay After You Open

Once your store is open and operational, the monthly overhead doesn’t stop. As a Jersey Mike’s franchise, you’ll be required to pay a 6.5% royalty fee on the gross sales of your store. This money is allocated to the corporate team, franchise support, and overall brand and operational improvements.

Rather than a direct benefit to your bottom line, the royalty fee helps cover the overhead at the corporate office, allowing the brand to continue operating. Additionally, you’ll need to pay a royalty fee, as well as 5% of sales to the marketing fund. The national marketing fund pays for all national marketing efforts, including ads, TV ads, digital ads, and social media materials, to keep the brand in the eyes of the consumer every day. Jersey Mike’s has a practical approach to keeping its name in the media, which benefits franchisees like you.

In addition to the costs listed, you may also incur expenses for local advertising, such as sponsoring a local youth sports team or promoting your grand opening in the local neighborhood. Those costs vary, but you will want to allocate some funds for some of these initiatives if you want to start building a customer base from day one.

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How Much Can You Make?

Naturally, everyone will want to investigate the return on investment. According to the available financial data provided by franchise disclosure documents and industry reports, the average Jersey Mike franchise generates between $700,000 and $1 million in annual sales. Some stores located in areas with optimal foot traffic can reach sales of over $1.2 million.

If we deduct the rent, payroll, inventory, fees, and other expenses, many franchisees claim they see profit margins of 10% to 15%. If your store earns $900,000 per year, you can expect to earn anywhere from $90,000 to $135,000.

That is a decent income; however, it is essential to understand that success does not come automatically. The location of your franchise, your staffing decisions, and the extent to which you are involved as the owner will all factor into the success of your franchise.

Support That Helps You Succeed

A significant reason why many owners opt to open a franchise instead of an independent sandwich shop is the built-in support. Jersey Mike’s has thorough training before opening and continues to provide support long after you’ve cut the ribbon.

They have resources to help with hiring and training employees, supply chain, point-of-sale technology, and local marketing. Many owners have found that the company is more like a partner than just another corporate machine. You are not left to figure it out on your own.

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Is This the Right Franchise for You?

Jersey Mike’s seeks franchisees who take ownership—not just investors who sit back and essentially collect a paycheck. They envision owners who want to be involved, have a passion, and believe in giving back to their community—ultimately wishing to impact the community in which they do business positively.

However, prior restaurant experience isn’t required, and it is beneficial to have experience in managing a team or have had some form of customer service experience. More than anything, the ideal Franchisee is someone who shows up, engages in the business, and takes pride in every sandwich made.

What’s Ahead in 2025

The future looks optimistic for Jersey Mike’s in 2025. The brand continues to open hundreds of locations every year as it shifts focus to smaller markets and new suburban (underdog) markets. They have also stepped up their investment in mobile ordering, loyalty rewards, and delivery to ease the burden on franchisees while creating sales opportunities and increased convenience for customers.

Even in difficult economic periods, people will spend money on food, and everyone loves to eat, especially when that food takes the form of fast, affordable meals. And Jersey Mike’s has built a reputation (correctly) as a cut above typical sub-chains. Accompanied by ease of delivery, this brand will continue to differentiate itself from competing sub-players.

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Conclusion

Opening a Jersey Mike’s franchise isn’t a get-rich-quick scheme–it’s a real business with real challenges. But for the right person, it can be an enriching experience. You get to build something, serve your community, and become part of a growing brand with a proven track record of success. The franchise fee for Jersey Mike’s isn’t small, but neither is the opportunity.

If you have the financial means, the time, and the desire to operate a great sandwich shop, you need to weigh your options. Just be prepared to work hard, maintain the quality of your product, and connect with guests, as Jersey Mike’s has been opening its doors, one sub at a time.

About Carson Derrow

My name is Carson Derrow I'm an entrepreneur, professional blogger, and marketer from Arkansas. I've been writing for startups and small businesses since 2012. I share the latest business news, tools, resources, and marketing tips to help startups and small businesses to grow their business.