What is the range of the estimated total initial investment for opening a new Jersey Mikes restaurant?
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 Mike's 2025 Franchise Disclosure Document, the estimated total initial investment to open a new restaurant ranges from $181,903 to $1,413,592. This broad range accounts for various factors that can influence startup costs. These factors include real estate costs, leasehold improvements, equipment, and initial inventory.
The initial investment includes expenses such as the initial franchise fee of $18,500, a real estate and construction fee of $5,000 paid to Jersey Mike's, and grand opening advertising costs of $12,500, also paid to Jersey Mike's. Rent and security deposits could range from $0 to $72,480, depending on the location and lease terms. Leasehold improvements can vary significantly, estimated between $75,172 and $722,422, depending on the condition of the premises and any construction allowances provided by the landlord.
Other significant costs include equipment, furniture, and small wares, estimated between $31,627 and $207,546. Initial inventory costs range from $1,923 to $35,000, while insurance costs are estimated between $1,000 and $24,780. Training expenses can range from $1,000 to $68,000, covering transportation, lodging, meals, and staff salaries during training. Additional expenses include exterior signage ($1,121 to $40,073), interior branding and graphics ($1,610 to $11,208), uniforms, office equipment, and supplies ($900 to $65,507), and POS system costs ($8,250 to $27,509, plus a $2,000-$4,000 license fee and $4,500 for network connection).
Prospective franchisees should carefully review each component of the initial investment with Jersey Mike's representatives and conduct thorough due diligence to understand the potential costs specific to their chosen location. It is also important to note that these estimates do not include financing costs, living expenses, or the franchisee's salary if they manage the restaurant.