What is the estimated total initial investment range for a Jersey Mikes franchise?
Jersey_Mikes Franchise · 2025 FDDAnswer from 2025 FDD Document
JERSEY MIKE'S RESTAURANT
| Type of Expenditure | Actual or Estimated Amounts | Method of Payment | When Due | To Whom Payment Is To Be Made | |
|---|---|---|---|---|---|
| Initial Franchise Fee1 | $18,500 | Lump Sum | On Signing of the Franchise Agreement | Company | |
| Real Estate and | $5,000 | Lump Sum | On Signing Lease | Company | |
| Construction Fee2 | |||||
| Rent/Lease | $0 – $72,480 | Monthly | Monthly | Landlord | |
| CAM/Taxes/Lease and | |||||
| Utility Security Deposits 3 | |||||
| Architectural Fees | $1,050–$33,142 | As Incurred | As Arranged | Approved Suppliers | |
| Leasehold Improvements4 | $75,172 – $722,422 | As Arranged | As Arranged | Landlord or Contractors | |
| Equipment/Furniture/ | $31,627 – $207,546 | As Arranged | As Arranged | Designated and | |
| Small Wares 5 | Approved Suppliers | ||||
| Initial Inventory6 | $1,923 – $35,000 | As Arranged | As Arranged | Designated and Approved Suppliers | |
| Insurance7 | $1,000 – $24,780 | As Arranged | As Arranged | Your Insurance Company | |
| Training8 | $1,000 – $68,000 | As Incurred | As Incurred | Transportation, Hotels, Restaurants, Staff Salaries | |
| Grand Opening | $12,500 | Lump Sum | On Signing Lease | Company | |
| Advertising9 | |||||
| Exterior Signage10 | $1,121–$40,073 | As Arranged | As Arranged | Approved Suppliers | |
| Interior Branding / | $1,610 – $11,208 | As Incurred | As Incurred | Approved Suppliers | |
| Graphics11 | |||||
| Uniforms, Office Equipment and Supplies, TVs/Stereo System/Security System 12 | $900 – $65,507 | As Incurred | As Incurred | Designated and Approved Suppliers | |
| POS System13 | $8,250–$27,509 | As Incurred | As Incurred | Designated Suppliers | |
| POS System Connection to | $4,500 | As Incurred | Prior to Opening | Company | |
| Private Network13 | |||||
| POS License Fee13 | $2,000-$4,000 | As Incurred | Prior to Opening | Company |
| Type of Expenditure | Actual or Estimated Amounts | Method of Payment | When Due | To Whom Payment Is To Be Made |
|---|---|---|---|---|
| Professional fees (lawyer, | $250 – $21,425 | As Incurred | As Incurred | Accountant, Lawyer |
| accountant, etc.) | ||||
| Business Licenses and | $500 – $25,000 | As Incurred | As Incurred | Local Municipality, |
| Permits | State | |||
| Additional Funds for 3 | $15,000 | As Incurred | As Incurred | Approved Suppliers, |
| months 14 | Employees | |||
| Total15 | $181,903–$1,413,592 |
NOTES TO ITEM 7 CHART:
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 24–28)
What This Means (2025 FDD)
According to Jersey Mikes's 2025 Franchise Disclosure Document, the estimated total initial investment for a new restaurant ranges from $181,903 to $1,413,592. This broad range encompasses various expenditures, including the initial franchise fee of $18,500, real estate and construction fees of $5,000, and rent/lease expenses that could range from $0 to $72,480 depending on the location and lease terms. Leasehold improvements account for a significant portion of the investment, estimated between $75,172 and $722,422, reflecting the variability in construction and renovation costs. Equipment, furniture, and small wares are estimated to cost between $31,627 and $207,546.
Additional costs include initial inventory, ranging from $1,923 to $35,000, and insurance, estimated between $1,000 and $24,780. Training expenses can vary significantly, from $1,000 to $68,000, depending on travel and accommodation choices. Jersey Mikes also requires a grand opening advertising fee of $12,500. Exterior and interior signage costs range from $1,121 to $40,073 and $1,610 to $11,208, respectively. Uniforms, office equipment, and supplies are estimated between $900 and $65,507. The POS system, including connection to the private network and license fees, ranges from $8,250 to $27,509 for the system itself, $4,500 for the network connection, and $2,000 to $4,000 for the license.
Furthermore, prospective franchisees should budget for professional fees, such as those for lawyers and accountants, which can range from $250 to $21,425. Business licenses and permits are estimated to cost between $500 and $25,000. It's also important to have additional funds for the first three months of operation, estimated at $15,000, to cover the gap between revenues and operating expenses. These estimates do not include debt service, living expenses, or the franchisee's salary if they manage the restaurant. The initial cash required may be reduced by utilizing various lending programs or a leasing program for the restaurant equipment.