When is the Jersey Mikes initial franchise fee of $18,500 due, and to whom is it paid?
Jersey_Mikes Franchise · 2025 FDDAnswer from 2025 FDD Document
| 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 |
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 initial franchise fee is $18,500. This fee is payable in a lump sum. The fee is due when you sign the Franchise Agreement and is paid to the Company, which refers to Jersey Mike's Franchise Systems, LLC.
It is important to note that this fee structure applies unless you sign an Area Development Agreement. If you enter into an Area Development Agreement, the initial franchise fee structure changes. The document states that development fees will range between $50,000 and $120,000, and the initial franchise fee, which is due when you sign each franchise agreement, will range between $0 and $6,000. The amount varies, based upon the number of Restaurants you commit to develop.
Prospective franchisees should be aware of these different fee structures and consider whether an Area Development Agreement is a suitable option for their business plans. It's also worth noting that Jersey Mikes may reduce the initial franchise fee under the terms of the Experienced Franchisee Program Addendum, so it's advisable to inquire about eligibility for this program.