What is the range of development fees for a Jersey Mikes Area Development Agreement?
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 |
|---|---|---|---|---|
| Development Fee1 | $50,000 - $120,000 | Lump Sum | On Signing of the Area Development Agreement | Company |
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 development fee for an Area Development Agreement ranges from $50,000 to $120,000. This fee is paid to Jersey Mike's when the Area Development Agreement is signed. The specific amount depends on the number of Jersey Mike's franchises the developer commits to establish.
For example, the development fee for three Jersey Mike's franchises under an Area Development Agreement is $50,000. Similarly, the development fee for five Jersey Mike's franchises is also $50,000. However, for an agreement to develop ten Jersey Mike's franchises, the development fee increases to $120,000.
It's important to note that the development fee is non-refundable. Depending on the Area Development Agreement, an initial franchise fee may also be due when signing individual Franchise Agreements. For example, if developing 5 Jersey Mike's franchises, an initial franchise fee of $6,000 per franchise is due when you sign the franchise agreement for each location.