Jersey Mike's franchise cost: investment, fees and the SBA default rate
Items 5, 6 and 7 · Jersey Mike's FDD 2026 · Updated 2026
A Jersey Mike's franchise costs $436,176–$1,162,228 in total initial investment, according to Item 7 of the brand's FDD (2026), including an initial franchise fee of $20,000 (Item 5); the ongoing royalty is 6.5% of sales (Item 6). Jersey Mike's splits its advertising contributions between two funds: 1% of Gross Receipts to the Corporate Advertising and Development Fund and 4% to the National Media Fund. On the lending side, Jersey Mike's franchisees defaulted on 2.2% of SBA 7(a) loans approved FY2010–FY2019 (5 of 226), and the average SBA loan to a Jersey Mike's franchisee in that cohort was $287,266.
| Total initial investment (Item 7) | $436,176–$1,162,228 |
|---|---|
| Initial franchise fee (Item 5) | $20,000 |
| Royalty (Item 6) | 6.5% of sales |
| Fee notes (Item 6) | Jersey Mike's splits its advertising contributions between two funds: 1% of Gross Receipts to the Corporate Advertising and Development Fund and 4% to the National Media Fund. |
| SBA 7(a) default rate, FY2010–FY2019 | 2.2% |
| Average SBA loan, 2010s cohort | $287,266 |
| Average SBA loan since 2020 | $510,883 |
| Industry | Limited-Service Restaurants |
How much does it cost to open a Jersey Mike's franchise?
Item 7 of the FDD estimates the total initial investment at $436,176–$1,162,228. It is the franchisor's own estimate of what a new franchisee spends to open one unit, typically the franchise fee, equipment, premises or vehicle costs, opening inventory and an initial working-capital reserve. The low and high ends usually reflect different unit sizes, leasing versus buying, and local costs. Range is for a standard leased Jersey Mike's restaurant in a shopping center; it excludes international, non-traditional, standalone and drive-thru locations.
What does the SBA data add?
The federal loan record adds what the FDD cannot: Jersey Mike's franchisees defaulted on 2.2% of SBA 7(a) loans approved FY2010–FY2019 (5 of 226 resolved loans), against the Limited-Service Restaurants industry average of 10.3%, according to U.S. Small Business Administration data with statuses as of June 30, 2026. Since 2020 they have taken 248 new SBA loans, of which 0 have already charged off.
Set the investment range against the loans: an average SBA loan of $287,266 against the $436,176–$1,162,228 investment range says roughly how much of a typical Jersey Mike's opening was debt-financed in the 2010s. The brand page has the year-by-year record and the industry comparison.
What would Jersey Mike's's royalty and ad fund cost at your sales level?
From Item 6: royalty 6.5% of sales. Royalty and ad fund only · illustration. Other Item 6 fees, fixed or percentage, are not included.
| Annual sales | Royalty |
|---|---|
| $250,000 | $16,250 |
| $500,000 | $32,500 |
| $1,000,000 | $65,000 |
| $2,000,000 | $130,000 |
Most SBA default figures published online use loans approved since 2020 — loans that have had six years or less to fail — so those rates are floors, not outcomes. Every rate on this site is computed from the matured FY2010–FY2019 cohort: loans that have been paid in full or charged off, so the result is settled. Loans approved since 2020 are shown as counts so early charge-offs are visible without being mistaken for a rate.
Frequently asked
How much does a Jersey Mike's franchise cost?
A Jersey Mike's franchise costs $436,176–$1,162,228 in total initial investment, according to Item 7 of the brand's FDD (2026), including an initial franchise fee of $20,000 (Item 5); the ongoing royalty is 6.5% of sales (Item 6). Jersey Mike's splits its advertising contributions between two funds: 1% of Gross Receipts to the Corporate Advertising and Development Fund and 4% to the National Media Fund. On the lending side, Jersey Mike's franchisees defaulted on 2.2% of SBA 7(a) loans approved FY2010–FY2019 (5 of 226), and the average SBA loan to a Jersey Mike's franchisee in that cohort was $287,266.
What is the Jersey Mike's franchise fee?
$20,000, per Item 5 of the FDD.
What royalty does Jersey Mike's charge?
6.5% of sales, per Item 6. Jersey Mike's splits its advertising contributions between two funds: 1% of Gross Receipts to the Corporate Advertising and Development Fund and 4% to the National Media Fund.
What is Jersey Mike's's SBA loan default rate?
2.2%: 5 of 226 SBA 7(a) loans approved FY2010–FY2019 to Jersey Mike's franchisees were charged off.
Source
Sources: Jersey Mike's Franchise Disclosure Document (2026, Minnesota CARDS file 37192-202608-03); U.S. Small Business Administration, 7(a) loan program charge-off data, FY2010–FY2019. Franchise data is matched on the SBA's franchise code / brand name. "Failure rate" here means the share of approved loans (resolved: paid in full or charged off) that were charged off; it is not a measure of unit closures. Last updated September 30, 2026.
Cite this page
Franchise Failure Rates (2026). Jersey Mike's franchise cost, Items 5–7, and SBA 7(a) default rate. From the Jersey Mike's FDD and U.S. SBA FOIA data, loan statuses as of June 30, 2026.
https://franchisefailurerates.com/franchise/jersey-mikes/cost/ · Data & methodology