Bottom line
- Total investment $182K – $1.4M including a $19K franchise fee, 6.5% ongoing royalty.
- Average unit revenue of $1.3M/year (median $1.3M).
- Rated STRONG with a risk score of 35/100. SBA loan default rate of 0.0% across 709 loans (below the industry average).
- System growing at 2520% CAGR over 3 years with 2989 total units — strong expansion trajectory.
Item 1 · who you're contracting with
The Franchisor
Yale framework · single-unit ROIC
Returns Analysis
Pulls Item 7 (investment) and Item 19 (revenue) from this brand's FDD into the Yale unlevered-ROIC formula. Override any input to stress-test it against your own assumptions.
The model · Yale framework
What would one Jersey Mike's unit return on the cash you put in?
Unlevered ROIC · per unit
19%
Below typical band (30–60%)
Levered LBO scenario · Yale Crease Capital framing
What would 25 Jersey Mike's units return on equity?
Equity IRR · 5-yr
49.9%
7.57× MOIC
Year-1 DSCR
1.88×
EBITDA ÷ debt service
Equity required
$1.2M
on $6.0M purchase
Total debt
$4.8M
SBA $3.0M + senior + seller note
Overview
About
Jersey Mike's franchisees operate quick-service sandwich shops selling fresh, customizable submarine sandwiches and related items. Day-to-day operations include food prep, customer service, inventory management, staffing, and maintaining brand standards across a high-volume, counter-service model.
Item 7 · what it costs
The Vitals
Item 19
Financial Performance
Item 20 · unit dynamics
The Growth Chart
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 22 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).
States derived from franchisee phone area codes (Item 20). Approximate — ported numbers may show the original state, not the franchisee's current location.
Government records
SBA Loan Data
Aggregated from SBA 7(a) loan disclosures, public data unique to FranchiseVerdict.
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
Jersey Mike's shows strong unit growth (11.6% YoY) and reasonable royalty rates, but lacks transparency on profitability, has no territorial protection, and carries prior litigation risk around franchise agreement terms.
Score breakdown · what drove the 35 / 100 rating
- 01MEDNo Item 19 (Average Unit Volume) disclosed — inability to validate the $1.34M average revenue claim or profitability
- 02MINORUnprotected territory creates direct competition risk and cannibalization between franchise units
- 03HIGHWashington State litigation regarding 'no-poach' clauses signals potential employment law compliance issues across the system
- 04MINORWide investment range ($181K–$1.41M) suggests inconsistent unit economics and unclear actual costs
- 05MINOR6.5% royalty on gross receipts (not net) means franchisees pay regardless of profitability
Severity inferred from the FDD text · not a regulatory classification
FDD Items 5, 6, 12, 17 · continued from Risk & Legal
Contract & Territory Detail
Item 11
Training & Operations
Item 20
Franchisee Contacts
Phone numbers extracted directly from this brand's FDD Item 20. After purchase, you'll also receive a list of validation questions tailored to this brand.
Franchisee contacts
50 numbers
One-time purchase · CSV download · Validation questions included
FDD download
Jersey Mike's · FDD (2025) PDF