CLEARFDD

Jersey Mike's Subs FDD Analysis

Risk Score: BQSR / Fast Casual Sandwich~2,800+ (as of 2024) unitsFDD Year: 2024
2Red Flags Identified

Top Findings

Item 19 — Disclosed Revenues Support the Model

Jersey Mike's includes meaningful Item 19 data. Average unit volumes for top-quartile performers hit $900,000-$1.1 million, with median stores doing approximately $700,000-$800,000. These are strong numbers for a sandwich QSR. The brand has shown consistent AUV growth over the past decade.

Item 7 — Investment Range is Wide and Construction-Heavy

Total initial investment runs approximately $194,000-$954,000 depending on site type (inline, end-cap, conversion). Buildout costs are the biggest variable. Many buyers underestimate the time and cost of finding a qualifying location. Jersey Mike's is selective about real estate. That is a quality indicator but can mean development timelines of 12-18 months before opening.

Item 6 — Multi-Layered Fee Structure

Beyond the standard royalty and ad fund, Jersey Mike's franchisees pay fees tied to promotional campaigns and local advertising cooperatives. The national ad fund rate (currently around 6-7% of gross) is one of the higher in the sandwich segment. Combined with royalties, total fees can reach 12-13% of gross. That is meaningful in a margin-sensitive QSR business.

Fee Burden Estimate

Royalty6.5% of gross sales
Ad Fund6–7% of gross sales
Combined~12.5–13.5% of gross
Est. Annual Fees$62,500–$67,500

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