Buyer Guide
Jersey Mike's Franchise Cost 2026
Quick answer
Jersey Mike's investment range, Item 19 gross sales, unit growth and SBA charge-off rate from its FDD, with a head-to-head QSR comparison.
The data behind this guide
Here is the short version: Jersey Mike's has one of the stronger data profiles in the restaurant category right now. The numbers back it up. A total investment of $436,176 to $1,162,228, average gross sales of $1,367,578, a 4.4% SBA charge-off rate across 667 loans, and net unit growth of +20.9% over the three years of its latest Item 20. Those four figures together make it the benchmark the rest of the sandwich category gets measured against.
What it costs to open a Jersey Mike's
The 2025 FDD Item 7 lays out the full investment range. The $20,000 franchise fee compares with $45,000 at McDonald's and $50,000 at Burger King. The wide range in total investment ($436K – $1.2M) reflects the difference between converting a small inline space versus building out a freestanding location from scratch.
| Cost Category | Low | High |
|---|---|---|
| Franchise fee | $20,000 | $20,000 |
| Equipment | $138,434 | $159,872 |
| Working capital | $17,490 | $32,555 |
| Build-out, signage, inventory and other Item 7 lines | Balance of the total | |
| Total estimated investment | $436,176 | $1,162,228 |
The high end of $1.2M compares with a QSR category average high end of $911K, and with big-box builds like KFC's franchise cost ($1.9M – $3.8M). You are getting a proven sub concept without the capital requirements of a full kitchen buildout.
$1.4M in average gross sales
The FDD discloses average gross sales of $1,367,578. That figure is revenue, not profit, and alone does not tell you what you will pocket, but it gives you a starting point for the math. After the 6.5% royalty ($89K) and 5.0% advertising fund ($68K), you are handing Jersey Mike's about $157K per year before touching food costs, labor, or rent.
Food, labor and occupancy come out of what is left, and the FDD does not disclose them or a net income figure. Owner earnings are yours to model, and the franchisees listed in the FDD are the people to check that model with.
The fee structure: 11.5% is not cheap
The 6.5% royalty on gross receipts is above the QSR category average of 5.5%. Combine it with the 5.0% advertising fund and you are at 11.5% of every dollar going to corporate. That is less than Subway's 12.5% but still significant.
The royalty is calculated on gross receipts, not net. So when your COGS spikes because bread flour prices doubled, you still owe Jersey Mike's the same percentage. This matters during inflationary periods. The 5.0% ad fund is above the QSR category average of 1.7%, but the brand awareness it buys has clearly worked. Jersey Mike's has become the go-to sub franchise while Subway continues to bleed locations.
SBA loan data: 4.4% is strong
This is where Jersey Mike's really separates itself. Across 667 SBA 7(a) loans, the charge-off rate is just 4.4%. The QSR category average is 15.5%. That means Jersey Mike's franchisees default on government-backed loans at well below the rate of the typical QSR brand.
Put differently: out of 667 franchise loans, only about 18 went bad. Compare that to Papa John's at 18.7% or Sonic at 8.3%. The SBA data does not lie, and it points to a system where franchisees are making enough money to service their debt.
3,227 units and still growing
Over the three years of its latest Item 20, Jersey Mike's franchised system shows net unit growth of +20.9%; in the most recent year it opened 259 locations and closed 13, for 3,227 total. In a restaurant category where many legacy brands are flat or shrinking, that kind of expansion signals operator confidence.
Franchisees do not keep buying into systems that do not work. When existing operators open second and third locations, it validates the unit economics better than any Item 19 disclosure.
The red flags you should know about
No franchise is perfect. Jersey Mike's has a few issues worth flagging:
- Territory is radius-based, not exclusive. You get a protected radius around your location, but Jersey Mike's can still sell through other channels (catering, grocery, online) within your area. This is standard for QSR but still a risk.
- The FDD does not disclose net income. The $1.4Min average gross sales is helpful, but without a bottom-line figure, you are estimating margins based on industry benchmarks rather than verified data.
- Washington State no-poach litigation. Jersey Mike's settled allegations about no-poach clauses that restricted employees from moving between franchise locations. This signals employment law compliance gaps.
- 10-year initial term. A McDonald's agreement runs 20 years and a Wendy's agreement 20. A shorter term is good for flexibility, but it means your renewal is negotiated sooner.
How Jersey Mike's compares to the competition
| Brand | Investment | Avg Gross Sales | SBA Charge-Off | Royalty |
|---|---|---|---|---|
| Jersey Mike's | $436K – $1.2M | $1.4M | 4.4% | 6.5% |
| Subway | $239K – $537K | Not disclosed | 6.8% | 8.0% |
| Wingstop | $310K – $1.0M | $2.0M | 8.4% | 6.0% |
| QSR Average | High end $911K | $1.1M | 15.5% | 5.5% |
The verdict
Jersey Mike's is not the cheapest franchise to buy and it is not the cheapest to operate. But the combination of strong unit-level revenue, a low SBA charge-off rate, consistent growth, and a brand that is winning market share from Subway gives it one of the stronger data profiles among QSR franchises. The 4.4% SBA charge-off rate, in particular, is hard to argue with. Check the full Jersey Mike's profile for the complete data picture, or compare it head-to-head with other brands on our comparison tool.
The bottom line
Jersey Mike's posts strong numbers in the sandwich QSR category on most measurable metrics. Average gross sales of $1.4M are a strong top line (gross sales, not profit), while the 4.4% SBA charge-off rate across 667 historical loans compares with a QSR category average of 15.5%. Net unit growth of +20.9% over three years shows where the system is heading. The main cost is the 11.5% combined royalty and advertising fee load, against QSR category averages of a 5.5% royalty and a 1.7% ad fund. What is left after labor and food costs is yours to model with the franchisees listed in the FDD. This is not investment advice.
Related franchise research
Continue your research with our Arby's franchise cost breakdown, Burger King franchise analysis, and best food franchises guide.
Research Jersey Mike's further
- 📄 Get the Jersey Mike's Full FDD Report — $19
- 📞 Get Jersey Mike's FDD-listed franchisee contacts — $49 per brand. Call real owners before you sign.
- 📊 How to read profit in an FDD — free. Most FDDs disclose gross sales, not profit.
Frequently Asked Questions
- How much does a Jersey Mike's franchise cost?
- A Jersey Mike's franchise costs $436,176 to $1,162,228 to open, per the 2025 FDD. The franchise fee is $20,000. Where a location lands in that range depends on the size and buildout requirements.
- How much does a Jersey Mike's franchise make?
- Jersey Mike's reports average gross sales of $1,367,578 per location. That is revenue, not profit: the 6.5% royalty, 5.0% advertising fund, food, labor and occupancy all come out before the owner is paid, and the FDD does not disclose net income.
- How many Jersey Mike's locations closed last year?
- In the most recent year of its latest Item 20, Jersey Mike's opened 259 locations and closed 13. Over three years its franchised system shows net unit growth of +20.9%.
- Is Jersey Mike's better in urban or suburban markets?
- Jersey Mike's performs well in both settings, with average gross sales of $1.4M.
- How fast is Jersey Mike's growing and are territories still available?
- Jersey Mike's FDD reports 3,227 total units and net unit growth of +20.9% over three years. Territory availability varies by market; the franchisor confirms which areas are open.