What does the estimated rental expense figure for Jersey Mikes represent?
Jersey_Mikes Franchise · 2025 FDDAnswer from 2025 FDD Document
Rent expense to operate the Franchised Restaurant will vary, based on location, square footage, age and condition of the structure, lease arrangements and other factors.
It is anticipated that the typical JERSEY MIKE'S Restaurant will operate from a retail shopping center of approximately 1,000 to 2,000 square feet.
The figure given represents an estimate of the rental expense for the first three months of operation, including lease and utility security deposits.
Landlords and utility companies may require that you place a deposit before occupation of the Premises and before installing telephone, gas, electricity, water, sewer, and related utility services.
These deposits may be refundable in accordance with the agreements made with the landlord and utility companies.
The low end of the estimate accounts for situations where franchisees have received periods of free rent and no required security deposits, because landlords have been unable to provide a tenant improvement allowance.
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 24–28)
What This Means (2025 FDD)
According to Jersey Mike's 2025 Franchise Disclosure Document, the rental expense figure represents an estimate of the rental expense for the first three months of operation, including lease and utility security deposits. The FDD anticipates that a typical Jersey Mike's restaurant will operate from a retail shopping center of approximately 1,000 to 2,000 square feet. The actual rent expense will vary based on location, square footage, age and condition of the structure, and lease arrangements.
The estimated range for rent/lease, CAM/property taxes/lease, and utility security deposits is between $0 and $72,480. The low end of this estimate accounts for situations where franchisees have received periods of free rent and no required security deposits, potentially because landlords have been unable to provide a tenant improvement allowance. Landlords and utility companies may require a deposit before occupation of the premises and before installing telephone, gas, electricity, water, sewer, and related utility services. These deposits may be refundable based on agreements with the landlord and utility companies.
Prospective franchisees should carefully consider the factors that can influence rental expenses and conduct thorough market research to estimate realistic costs for their specific location. Understanding the terms of the lease agreement, including security deposit requirements and potential for free rent periods, is crucial for accurate financial planning. Franchisees should also factor in potential fluctuations in utility costs and property taxes, which can impact overall rental expenses.