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Jersey Mike's Franchise Cost, Revenue & Review 2026

Quick-Service RestaurantsNew JerseyFranchising since 1987
AStrongest tierStrongest tier98/100Editorial grade from public filings; not investment advice.
Investment
$436K – $1.2M
Disclosed sales
$1.4M
gross sales, not profit
SBA charge-off
4.4%
on 667 loans

Investment, fees, disclosed sales, units, SBA record and risk, as one PDF. Free; no spam; one click to unsubscribe.

FV-01349FDD 2026Data QualityExcellent91%
Owner-operator requiredNo: No territory protection

Data from FDD filing + SBA 7(a) records

Analysis by FranchiseVerdict Research · Methodology

Jersey Mike's is a fast-casual sub franchise serving made-to-order sandwiches sliced fresh in front of the customer. Franchisees run compact shops for dine-in, takeout, and delivery.

FranchiseVerdict summary · 2026

A Jersey Mike's franchise requires a total initial investment of $436K – $1.2M, including a $9K – $20K franchise fee and an ongoing 6.5% royalty[2]. Per the 2026 FDD, average unit revenue was $1.4M[2]. SBA 7(a) loans show a 4.4% charge-off rate across 667 loans[1]. FranchiseVerdict grade: A (Strongest tier), an editorial assessment, not investment advice. Run a live ROI scan →

Sources, dates and evidence

FDD issued: · Data extracted: · Last cited check: · Staleness risk: low - issued within the last 12 months

Evidence: strong✓ Investment (Item 7)✓ Item 19 status✓ Units and owners (Item 20)✓ SBA loan coverage✓ Litigation (Item 3)✓ Financial statements (Item 21)✓ Franchisor identityhow this is scored8 of 8 headline figures on this page cite a page of the filing.

Overview

Investment
$436K – $1.2M
69th pct Service Resta…
Avg gross sales
$1.4M
26th pct Service Resta…
Royalty
6.5%
89th pct Service Resta…
Units
3,227
95th pct Service Resta…
SBA charge-off
4.4%
% of SBA 7(a) loans not repaid · median varies by category

Quick verdict · Quick-Service Restaurants · color = vs category peers

Total Investment
$436K – $1.2M
Median $486K
above median ↑, worse than category
Franchise Fee
$9K – $20K
Median $35K
below median ↓, better than category
Liquid Capital Req'd
$17K – $33K
Median $33K
below median ↓, better than category
Avg Revenue
$1.4M
Median $975K
above median ↑, better than category
Royalty Rate
6.5%
Median 5.5%
above median ↑, worse than category
Ongoing Fees
11.5% of rev
Median 7.5%
above median ↑, worse than category
SBA Charge-Off Rate
4.4%
667 loans · Median 14.3%
below median ↓, better than category
System Size
3,227 units
Median 18 units
above median ↑, better than category
Turnover Rate
0.4%
Median 0.0%
Territory
None
The franchisor can open or license outlets nearby
Owner-Operator
Required
You must run it yourself
Litigation
3 cases
Some history

Green = favorable by >10% vs Quick-Service Restaurants median · No shading = within ±10% · Red = unfavorable by >10% · Source: FDD filings + SBA 7(a)

Data from public FDD filings and SBA records. Not financial advice. Methodology

Bottom line

  • COSTTotal investment $436K – $1.2M including a $20K franchise fee, 6.5% ongoing royalty.
  • RETURNSAverage unit revenue of $1.4M/year (median $1.3M).
  • RISKVerdict A (Strongest tier), verdict score 98/100 (higher is better). SBA loan charge-off rate of 4.4% across 667 loans (well below the franchise average, based on all SBA 7(a) franchise lending, 2010–2025).
  • GROWTHPositive: net +246 franchised outlets in the latest year (259 opened, 13 closed); 563 signed but not yet open (Item 20).
  • GROWTHSystem growing at 20.6% CAGR over 3 years with 3227 total units. Strong expansion trajectory.

Item 1 · who you're contracting with

The Franchisor

Corporate structure & franchisor financials
Legal entity
A SUB ABOVE, LLC
Parent company
Jersey Mike's Franchise Systems, LLC (JMFS)
FDD Item 1, page 8 of the 2026 FDD
Ultimate parent
Jersey Mike's HoldCo, LLC (majority owned by investment funds managed by affiliates of Blackstone Inc.)
FDD Item 1, page 9 of the 2026 FDD
Predecessor
Jersey Mike's Franchise Systems, LLC (formerly Jersey Mike's Franchise Systems, Inc.); original concept from The Original Mike's, Inc. d/b/a Mike's Submarines
Prior franchisor entity
CEO title
Chief Executive Officer
Charlie Morrison
CEO experience
18 yrs
Years in role or industry
Incorporated in
Delaware
HQ
1 Commvault Way, Suite 400, Tinton Falls, New Jersey 07724
Auditor
Deloitte & Touche LLP
Audited financials
Franchisor revenue
$309.8M
vs $280.1M prior year

Same owner · FDD Item 1, page 9

Portfolio: Blackstone (private-equity sponsor)

Grouped by the owner's name as each filing prints it (this page: the 2026 FDD). Spelling variants of the same group may be listed apart; a brand is never grouped with an owner its filing does not name.

Overview

About

CEO
Charlie Morrison
Headquarters
New Jersey
FDD year
2026
States available
51

Can you afford it, and what does the money buy?

Entry cost runs 65% above the typical quick-service restaurants franchise.

Total investment (Item 7)$436K – $1.2MCited, not corroborated — printed on page 24 of the 2026 FDD (Item 7). Nothing else in our record independently restates or re-derives it.
Franchise fee$20,000Verified — printed on page 15 of the 2026 FDD (Item 5), and another item of the same filing prints the same figure on a labelled row, which is an independent restatement.
Royalty6.5%Cited, not corroborated — printed on page 16 of the 2026 FDD (Item 6). Nothing else in our record independently restates or re-derives it.
Ad fund5.0%Cited, not corroborated — printed on page 21 of the 2026 FDD (Item 6). Nothing else in our record independently restates or re-derives it.
Working capital$17K – $33K

Source: FDD 2026 · Items 5–7

Full Item 7 breakdown20 line items

Initial investment breakdown

Item 7 initial investment line items
Line itemLowHigh
Development Fee$10K$10K
Initial Franchise Fee$20K$20K
Rent/Lease CAM/Taxes/Lease and Utility Security Deposits$11K$20K
Architectural Fees$8K$30K
Leasehold Improvements$147K$659K
Equipment/Furniture/ Small Wares$138K$160K
Initial Inventory$14K$26K
Insurance$4K$22K
Training$14K$28K
Grand Opening Advertising$10K$10K
Exterior Signage$12K$39K
Interior Branding / Graphics$4K$10K
Uniforms, Office Equipment and Supplies, TVs/Stereo System/Security System$6K$19K
POS System$8K$15K
POS System Connection to Private Network$5K$5K
POS License Fee$2K$4K
Initial Credit Card Processing Software Fee$750$750
Professional fees (lawyer, accountant, etc.)$5K$28K
Business Licenses and Permits$500$25K
Additional Funds for 3 months$17K$33K
Total initial investment$436K$1.2M

Line items extracted from FDD Item 7. Ranges reflect the franchisor's stated low and high per line. Total is the sum of line-item lows / highs — actual costs may fall outside this range depending on market and build-out scope.

Item 7 · what it costs to open + operate

The Vitals

Total investment
$436K – $1.2M
Bottom third — review vs category
Liquid capital req'd
$17K – $33K
Top 40% of category vs category
Franchise fee
$9K – $20K
Top 40% of category vs category
Royalty
6.5%
typical 6–8%
Ad fund
5.0%
typical 3–5%
Total fee load
11.5%
vs 9–13% typical

Ongoing fees · Item 6

Jersey Mike's: Item 6 recurring fees
FeeAmount
Royalty6.5% of gross sales
Marketing / ad fund5.0%
Technology fee$395
Transfer fee$15K
Renewal fee$20K
Inventory (initial)$14K – $26K
Total fee load11.5% of rev

What do units actually make?

Average unit sales run 40% above the quick-service restaurants norm.

Avg gross sales$1.4MCited, not corroborated — printed on page 58 of the 2026 FDD. Nothing else in our record independently restates or re-derives it.
Median gross sales$1.3MCited, not corroborated — printed on page 58 of the 2026 FDD. Nothing else in our record independently restates or re-derives it.
Item 19 typegross sales
Sample size2,606 outlets

Source: FDD 2026 · Item 19

Single-unit · not modelled

Returns at a glance

An FDD discloses gross sales, not profit, and the operating costs that turn one into the other are in no filing. We publish no modelled return for Jersey Mike's until someone supplies them — yours, in the models below.

—

Not modelled yet

An FDD discloses gross sales, not profit. We hold no sourced figure for COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.

Total invested capital · disclosed

$824K

Item 7 initial investment plus working capital, as filed — the one figure here that needs no assumption.

ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
Blue values = direct from FDD (Item 7 investment, Item 19 revenue, Item 6 fees)Not set = no filing supplies it and we will not substitute one. Enter your own

What one unit earns on your invested capital

Model A · Single-Unit Return

Computes unlevered return on invested capital (ROIC) for a single franchise unit, read against the 30–60% reference band · Yale SOM, Post-MBA Path Exhibit 2 (2023). Below that band a passive index fund likely outperforms; above it the franchisor has pricing power you're subsidizing.

Note: Item 19 revenue is what the franchisor discloses, and it is the top line only — gross sales are not profit. No FDD discloses the operating costs that turn one into the other, so those fields start empty and nothing is modelled until you supply them from your own lease quote, labor market and build-out budget.

Returns model · single-unit ROIC

What would one Jersey Mike's unit return on the cash you put in?

From FDDNot set — you supply itYou overrode an FDD value
Revenue · per unit, per yearFDD
FDD Item 19 reports $1,367,578 per unit
Franchisor take · royalty + ad fundFDD
typ 6–8%
typ 3–5%
Operating costs · not in any FDDnot set

Illustrative category typicals — not sourced to any filing, survey or sample. Replace them with figures from franchisee validation calls before you rely on the output.

Total invested capital · what you put in to openFDD
FDD Item 7: $436K–$1.2M (midpoint used)
FDD reports $17K–$33K

Unlevered ROIC · per unit

Your modelled return on total invested capital, before any debt financing.

—

An FDD discloses gross sales, not profit. We hold no sourced figure for COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.


Store EBITDA · annual
—
EBITDA margin
—
Total invested
$824K
Payback
—
Single-unit only. A multi-unit portfolio gives up roughly 5–15% of this to shared services (corporate G&A) before reaching the ~10-unit break-even point.

What 25 units return when you use SBA financing

Model B · Return on Equity: Debt-Financed Acquisition

Models a 25-unit portfolio acquisition financed with an SBA 7(a) loan. Shows equity IRR (your return on cash invested), DSCR (how safely the cash flow covers debt service), and the capital stack (SBA + seller + equity breakdown).

This is the “search fund” or “entrepreneurship through acquisition” scenario: you buy an existing multi-unit operator, use leverage to amplify returns, and either operate or hire management. The 25-unit size is the typical minimum for an SBA-backed franchise portfolio acquisition to pencil as a full-time income.

What “return on equity” means here: if you put in $500K of your own cash and the business generates enough EBITDA to pay down debt and grow, your equity IRR is the annual return on that $500K, including the value created when you eventually sell. Target IRR for a search fund is typically 25–35%.

Not modelled yet

An FDD discloses gross sales, not profit. We hold no sourced figure for COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.

A 25-unit return is built on a per-unit EBITDA. Fill in the operating costs in Model A above and this model runs on that figure, or take the whole scenario to the full ROI workbench, where the portfolio and LBO models accept your own per-unit economics directly.

These models are for research and scenario planning only. Not investment advice. Actual results depend on your specific location, management, and market conditions. Consult a franchise attorney and accountant before signing any franchise agreement.

Item 19 · Source: 2026 FDD

Financial Performance

Avg gross sales
$1.4M
Per unit, per year
Median gross sales
$1.3M

Gross sales are revenue before expenses — not profit. Actual owner earnings depend on rent, labor, royalties, marketing fees, and debt service.

Item 19 type
gross sales
Sample size
2,606 outlets
vs category median 19 · large
Range (low → high)
$512K→$3.2MCited, not corroborated — printed on page 58 of the 2026 FDD. Nothing else in our record independently restates or re-derives it.
Cohort dispersion (min → max)
Reporting year
2025
Fiscal year the figures cover
Source filing
FDD 2026
Disclosed in the 2026 filing, covering 2025
Transparency
4 / 10
vs category median 4 / 10 · typical
Gross sales rank26th
Item 19 reporting methods vary across brands
Investment cost rank69th
Lower investment ranks lower (better)
Royalty rate rank89th
Lower royalty = lower percentile (better)
Unit count rank95th
vs Quick-Service Restaurants peers
Risk score rank0th
Lower risk = lower percentile (better)

Compared against 781 Quick-Service Restaurants brands

Showing the headline figures — all 155 extracted fields are in the Full FDD Report · $19 →

Operator outlook

What the numbers say

Data-driven interpretation of this brand's financial disclosures, fee structure, and system trajectory.

Unit economics

Average unit generates $1.4M/year in gross sales. Revenue-to-investment ratio: 1.7x.

Fee burden

Total ongoing fee load of 11.5% — above the Quick-Service Restaurants median of 7.5%.

Disclosure

Transparency score 4/10 — this franchisor discloses detailed breakdowns (quartiles, segments, or cohort data). Buyers can model unit economics with higher confidence.

Operator retention

System expanding at 20.6% CAGR over 3 years across 3,227 units — operators are staying and new ones are joining.

Multi-unit rate

Only 20% of franchisees own multiple units. Could indicate challenging economics or a young system where operators haven't had time to expand.

Source: FDD Item 19 financial performance representations and publicly filed FDD data. Past performance is not indicative of future results. Verify all figures with the franchisor and current franchisees before making any investment decision.

vs Quick-Service Restaurants medians

How Jersey Mike's Compares

Metric
Jersey Mike's
Category median
vs median
Investment
$799K
$486Kmiddle half $342K–$748K · n=780
Above median, worse than category
Revenue
$1.4M
$975Kmiddle half $664K–$1.4M · n=284
Above median, better than category
Unit Count
3,227
18middle half 5–79 · n=755
Above median, better than category

Category median of published Quick-Service Restaurants brands that report the figure; the middle half spans the 25th to 75th percentile and n counts the brands behind it. Medians are used because a few very large systems pull an average far from the typical brand. Revenue is disclosed gross sales, not profit.

Is the system healthy?

Total units3,227Cited, not corroborated — printed on page 59 of the 2026 FDD. Nothing else in our record independently restates or re-derives it.
3-yr growth+20.6% (favorable vs category)
Turnover rate0.4% (favorable vs category)

Source: FDD 2026 · Item 20

Unit growth

Item 20 · unit dynamics

The Growth Chart

Total units
3,227
Opened
259
Last reporting year
Closed
13
Terminated
0
Franchisor ended the franchise (per Item 20)
Non-renewed
0
Term expired, not renewed (per Item 20)
Turnover rate
0.4%
Company-owned
26
Corporate units in the system
% franchised
99%
vs corporate-owned
Multi-unit owners
20.0%
Net growth (3-yr)
+20.6%
Net unit change over 3 years
3-yr CAGR
+20.6%
Compounded over last 3 years

Last fiscal year · Item 20 exits and transfers

Terminated
0
Not renewed
0
Transferred
218
Reacquired
0
Franchisor bought back
Signed, not yet open
563
0.17 per open outlet · Item 20 Table 5
Projected new
261
Franchisor's next-year forecast
Transfer rate
2.6%
Owners selling to other franchisees
Continuity rate
99.7%
Units that stayed open
Ceased ops
0.2%
Units that stopped operating
2023
2,647
Franchised units
2024
2,955+308
Franchised units
2025
3,201+246
Franchised units

Year-over-year franchised unit counts and net change. Source: FDD Item 20.

Item 20 · 51 states with active franchisees

The Territory Map

Derived from franchisee contact records. Shows states with at least one current operator. Not where the franchisor is registered to sell new units (that data is re-extracting in a future refresh).

AK
ME
VT
NH
MA
RI
CT
NY
NJ
PA
DE
MD
DC
WA
OR
CA
NV
ID
MT
WY
UT
CO
AZ
NM
ND
SD
NE
KS
OK
TX
MN
IA
MO
AR
LA
WI
IL
MS
TN
MI
IN
KY
AL
OH
WV
GA
VA
NC
SC
FL
HI
Active operators · 51 states
No contacts on file

States derived from franchisee contact records (FDD Item 20). Shows states with at least one current operator on file. Full state registration data (Item 12) will appear on a future FDD refresh.

Where the owners are · Item 20 owner list

3,075 current owners across 51 states; 9 former (terminated, transferred or not renewed) listed separately.

  • CA 393
  • TX 245
  • FL 243
  • NC 212
  • NJ 139
  • GA 123
  • OH 122
  • NY 114
  • IL 106
  • VA 105
  • SC 95
  • PA 89
  • +39 more states

Counts only, from the list the franchisor prints in Item 20. Names and phone numbers are for your own due diligence and are not shown here.

SBA loan performance

Government records

SBA Loan Data

Aggregated from SBA 7(a) and 504 loan disclosures, public data unique to FranchiseVerdict.

A
SBA Lending Health
Excellent SBA lending record · 4.4% charge-off
Total loans
667
Loan volume
$223.3M
Median loan
$350K
50th percentile
Charge-off rate
4.4%
on 667 loans · rates vary by category · see methodology

Historical SBA 7(a) lending data, not predictive of future performance. How SBA charge-off rates are calculated

Repayment rate (PIF)
95.6%
5-yr charge-off
1.1%
Loans approved 2021+
Active lenders
153
Defaults
18
Typical loan rate
6.8%
avg rate to borrowers
Franchised industry avg
10.8%
brand beats franchise avg ↓
Jobs supported
9,443
5.5 per loan
Lender concentration
7%
top lender's share

Borrower mix: 77% went to startups / new businesses, 23% to established operators

Franchise vs independent — in limited-service restaurants, franchised businesses charge off at 10.8% vs 10.0% for independents — franchising is associated with 8% higher SBA default risk in this category.

Vintage analysis

Jersey Mike's charge-off rate by loan vintage

BrandNational avg
Jersey Mike's charge-off rate by loan vintage. Showing 10 vintages from 2013 to 2022. Rates range from 0.0% to 11.1%.0%5%10%15%'13'15'17'19'21'22

Top lenders financing Jersey Mike's franchisees

Live Oak Banking Company30 loans0.0%
Citizens Bank27 loans0.0%
Bank of the Pacific26 loans0.0%

Showing 3 of 153 lenders. The full breakdown — every lender, state distribution, interest rates & risk ratings — is in the SBA Lending Report below.

Explore lender portfolios on Bank Reports or regional data on State Reports.

Total loans
3
Loan volume
$849K
Charge-off rate
N/A
Jobs created
52

Historical SBA 504 lending data via CDCs, not predictive of future performance.

Explore lender portfolios on Bank Reports or regional data on State Reports.

Lender network · 7(a) + 504

SBA Lending Report

Full lending analysis for Jersey Mike's from SBA 7(a) FOIA data.

Principal loss rate
0.8%
Avg SBA guarantee
74%
Avg interest rate
6.77%
Avg chargeoff amount
$257K
Lender concentration
7.1%
Job velocity
5.5 per $100K
Startup risk premium
-7.4pp
NAICS benchmark
8.7%
NAICS 722513
Jobs supported
9,443

Top SBA lendersTop lender holds 7% of loans

#LenderLoansVolumeDefault %
1Live Oak Banking Company30$14.9M0.0%
2Citizens Bank27$11.5M0.0%
3Bank of the Pacific26$8.1M0.0%
4The Huntington National Bank26$8.9M0.0%
5United Community Bank19$10.1M0.0%
6Manufacturers and Traders Trust Company14$4.6M0.0%
7Stearns Bank National Association13$4.1M0.0%
8The Bancorp Bank National Association10$4.2M10.0%
9Wells Fargo Bank National Association9$3.3M0.0%
10SouthState Bank, National Association9$5.0M0.0%

Geographic failure vector

StateLoansDefaultsRate
TXTexas6000.0%
CACalifornia40310.0%
WAWashington3700.0%
ILIllinois2500.0%
OHOhio2200.0%
FLFlorida1900.0%
MOMissouri1900.0%
MIMichigan1600.0%
GAGeorgia13250.0%
MNMinnesota1300.0%

SBA 7(a) lending trend

2011
1
2013
3
2014
36
2015
38
2016
25
2017
21
2018
37
2019
31
2020
32
2021
69
2022
38
2023
30
2024
20
2025
33
2026
6

Borrower profile

Startup200 (68%)
Existing (2+ yr)45 (15%)
New (< 2 yr)26 (9%)
Ownership change12 (4%)
Unanswered9 (3%)
New (< 1 yr)2 (1%)
2-3 years1 (0%)
Less than 4 years old but at least 31 (0%)

Source: SBA 7(a) + 504 FOIA loan-level data, matched by FranchiseVerdict

What could kill this investment?

SBA loans charge off at 4.4% — 73% below the 16.0% national norm, i.e. lower lender-observed risk.

SBA charge-off4.4% · 667 loans
Verdict score98/100 (higher is better)
Litigation3 cases
Auditor going-concern doubtNo (favorable vs category)

Source: SBA 7(a) FOIA · FDD Items 3, 21

Risk analysis

FranchiseVerdict rating + FDD Items 3, 4, 8, 16, 21

Risk & Legal

AStrongest tier98Verdict score 98/100
High confidence±4 pts
94100

Litigation (Item 3)

Subject: the franchisor is a named party (defendant).

2 concluded cases (WA AG no-poach clause settled for $150,000; Tsou gift-card class action settled for $25,000) and 1 pending class action (Brewer v. JMFS re: mobile app service fees, California consumer protection claims).

Largest disclosed settlement: $150,000

Bankruptcy (Item 4)

None disclosed

Audited financials (Item 21)

Yes · Deloitte &amp; Touche LLP

Franchisor revenue (Item 21)

Yr 1: $309.8MYr 2: $280.1MNon-royalty: $3.6M

Franchisor entity revenue (not unit-level)

Supplier relationship · Items 8 & 16

  • Franchisor sells you products: No
  • Kickbacks from required suppliers: No
  • Must buy proprietary products: Yes
  • Restricted to system-approved products: Yes
  • Can negotiate own supplier terms: No

Score breakdown · what drove the 98 / 100 verdict

  1. 01MINORUnprotected territory creates direct competition risk and cannibalization between franchise units
  2. 02MINORWashington State litigation regarding 'no-poach' clauses signals potential employment law compliance issues across the system
  3. 03MINOR6.5% royalty on gross receipts (not net) means franchisees pay regardless of profitability

Severity inferred from the FDD text · not a regulatory classification

Showing the headline figures — all 155 extracted fields are in the Full FDD Report · $19 →

Full litigation history from the FDD (Items 3 and 4) →

Litigation case detail3 matters · Item 3

Litigation cases

The franchisor

Concluded (1)

  • Sam Tsou v. A Sub Above, LLC and Does 1-10

    settled

    Third-party plaintiff · filed 2025 · Superior Court of California, County of Los Angeles · 25STCV28811

    “On September 29, 2025, Sam Tsou (“Tsou”) filed a class action lawsuit against Company, alleging that Company violated California Civil Code §1749.5 et seq., the California False Advertising Act, and the California Unfair Competition Law after Tsou’s request for cash redemption of an unused balance on a gift card had been denied at a franchised JERSEY MIKE’S Restaurant.”Page 14 of the 2026 FDD, Item 3

    Outcome:“Company denied all allegations, but to resolve the dispute without admitting any fault or liability, Company and Tsou, on an individual basis, entered into a Settlement Agreement on March 27, 2026, which required Company to pay Tsou $25,000 in exchange for a full release from Tsou and related parties.”

Parent, affiliates and predecessor

Pending (1)

  • Justin Brewer v. Jersey Mike’s Franchise Systems, Inc. et al

    pending

    Third-party plaintiff · Jersey Mike’s Franchise Systems (“JMFS”) - former franchisor (predecessor) and indirect parent of the franchisor A Sub Above, LLC · filed 2026 · United States District Court, Central District of California · 5:26-cv-535-SSS

    “Justin Brewer v. Jersey Mike’s Franchise Systems, Inc. et al, Case No. 5:26-cv-535-SSS (United States District Court, Central District of California, Feb. 6, 2026). On February 6, 2026, Justin Brewer (“Brewer”) filed a class action lawsuit against JMFS, purporting that JMFS violated the California”Page 14 of the 2026 FDD, Item 3

Concluded (1)

  • The State of Washington v. Jersey Mike’s Franchise Systems, Inc.; Auburn JM, LLC; BCG-Northwest, LLC, Berry Investment Group, Ltd.; Elsterly, LLC; FM Restaurants, Inc.; Food Adventures, Inc.; Golden Springs, LLC; JM Northtown, LLC; JM Puyallup, Inc.; JM Restaurants, Inc.; JM Silverdale, LLC; JM Spok

    concluded

    Government or regulatory action · Jersey Mike’s Franchise Systems (“JMFS”) - franchisor at the time (predecessor); now indirect parent of A Sub Above, LLC · filed 2018 · State of Washington King County Superior Court · 18-2-25822-7

    “On October 15, 2018, the State of Washington, through its Attorney General, sued JMFS, and each of its franchisees owning restaurants located the State of Washington (“Washington Franchisees”), alleging that JMFS and Washington Franchisees violated the Washington Consumer Protection Act based on the former inclusion in legacy franchise agreements of a so-called ‘no-poach’ provision”Page 14 of the 2026 FDD, Item 3

    Outcome:“Further, JMFS agreed to pay the State of Washington $150,000 without admitting to any fact, liability, misconduct or wrongdoing on JMFS’s part.”

Item 3 lists the litigation the franchisor must disclose; a matter against a parent, an affiliate or a named officer is not a matter against the franchisor, and pending claims are allegations, not findings.

What are you signing up for?

Ongoing fees run about 11.5% of sales (royalty + ad fund), before rent and labor.

Initial term10 yrs
Renewal term10 yrs
TerritoryNone (caution)
Initial training388 hrs

Source: FDD 2026 · Items 11, 12, 17

FDD Items 12, 15, 17 · continued from Risk & Legal

Contract & Territory Detail

Initial term10 years
Renewal term10 years
Allowed renewalsℹ1
Territory typeNo territory protection
Protected territoryNo
Exclusive territoryℹNo
Territory radius1 mi
Online sales rightsℹRestricted
Franchisor can competeYes
Hire a manager?Allowed
Owner-operatorRequired
Non-compete (years)ℹ2 years
Non-compete (miles)ℹ10 mi
Right of first refusalℹYes
RoFR response window15 days
Transfer requires consentYes
Termination notice30 days
Termination groundsℹ22
Curable defaultsℹ6
Mandatory arbitrationYes
Arbitration locationMonmouth County, New Jersey
Jury trial waiverYes
Governing lawNew Jersey
Litigation count3
View Item 3 litigation summary

2 concluded cases (WA AG no-poach clause settled for $150,000; Tsou gift-card class action settled for $25,000) and 1 pending class action (Brewer v. JMFS re: mobile app service fees, California consumer protection claims).

Items 10, 11

Training & Operations

Classroom training
22 hrs
On-the-job training
365 hrs
Training location
Certified Training Restaurant (Phase 1 and 3, on-the-job); Company's training center in Manasquan, New Jersey or other designated location (Phase 2, classroom)
Ongoing training
Required
Site selection
franchisee (with approved real estate broker), subject to Company approval of site and Designated Territory/Area
Franchisor financing
Offered
Item 10
POS system
ReSource Point of Sale, LLC
Operating tech stack

Items 5 & 11

Franchisor Support

✓Site selection assistance
✓Grand opening support
✗Lease negotiation help

Technology: ReSource Point of Sale, LLC

Item 20 · call current owners

Franchisee Contacts

3,084 owners to call

Name · phone · city · state. Extracted from FDD Item 20

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(570) 822-••••PA
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(469) 848-••••TX
(951) 845-••••CA
(208) 650-••••ID
(440) 565-••••OH

Frequently asked questions

Frequently Asked Questions

How much does it cost to open a Jersey Mike's franchise?

The total investment to open a Jersey Mike's franchise ranges from $436K – $1.2M, with an initial franchise fee of $20K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).

What do Jersey Mike's franchise owners earn?

According to Item 19 of the Jersey Mike's FDD, the average gross sales per unit is $1.4M. The median is $1.3M. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.

Who owns Jersey Mike's?

Jersey Mike's is franchised by A SUB ABOVE, LLC. Its parent company is Jersey Mike's Franchise Systems, LLC (JMFS). The ultimate parent named in the FDD is Jersey Mike's HoldCo, LLC (majority owned by investment funds managed by affiliates of Blackstone Inc.). Source: FDD Item 1, 2026 filing.

What is Item 19 in the Jersey Mike's FDD?

The FDD section where a franchisor may disclose financial performance of its outlets. Disclosure is optional and formats vary; figures are typically gross sales, which is revenue before expenses, not profit. FranchiseVerdict extracts these figures directly from the Jersey Mike's FDD and qualifies whose outlets they describe.

What is Jersey Mike's's franchise failure rate?

Based on SBA 7(a) loan data, Jersey Mike's has a charge-off rate of 4.4% across 667 loans, meaning 4.4% of franchise loans were charged off. Charge-off rates are one proxy for franchise risk, though they do not capture all closures. This data comes from FOIA-sourced SBA lending records.

How many Jersey Mike's franchise locations are there?

As of their most recent FDD filing, Jersey Mike's has 3,227 total units in the United States, including 3,201 franchised units and 26 company-owned units. 259 new units were opened in the latest reporting year.

Is Jersey Mike's a good franchise to buy?

FranchiseVerdict rates Jersey Mike's as a A-grade franchise with a verdict score of 98 out of 100 (higher is better). The grade is a deterministic score built from six weighted dimensions — financial health, unit economics, unit growth, scale, legal, and transparency — then calibrated against SBA loan charge-off rates and FDD age. Transparency is one of the six, so a filing that discloses less scores lower on that dimension than one that discloses more. Our rating is based solely on publicly available FDD and government data; we recommend speaking with current franchisees before making any investment decision. This is not investment advice.

Data sourced from public FDD filings and SBA 7(a) FOIA records. Not financial advice.

For franchisors

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Data extracted from public FDD filings and SBA 7(a) loan disclosures (FOIA). This information is provided for research purposes only and does not constitute financial, legal, or investment advice. Verify all figures with the franchisor's current Franchise Disclosure Document before making any investment decision.