Owning your own business is the American dream. In today’s economic climate of uncertainty, owning a recognized franchise is one of the safest investments you can make. Investing in franchising requires commitment and investment and is certainly not for everyone. But for those willing to put in the time and take the journey, franchise opportunities like Jersey Mike’s offer a unique opportunity to become part of an established brand, potentially opening the door for a successful investment.
Jersey Mike’s is a popular submarine sandwich franchise that specializes in everything from hot subs to cold subs, salads, sides, desserts, and breakfast. Since 1956, Jersey Mike’s has been providing customers with great-tasting subs with the freshest ingredients. Worldwide, Jersey Mike’s serves more than 2 million customers each year, earning them the trust and loyalty of its customers.
For those who are interested in investing in a Jersey Mike’s franchise, they need to understand the franchising process. There are several questions potential franchisees should consider when determining if purchasing a Jersey Mike’s franchise is right for them.
Questions You Should Ask Before Investing in a Jersey Mike’s Franchise
1. What are the Requirements for Investing in a Jersey Mike’s Franchise?
Investing in a Jersey Mike’s franchise is no small decision. Before making the leap, know what the requirements are.
When looking to invest in a Jersey Mike’s franchise, potential investors should have a minimum net worth of $500,000, with at least $125,000 liquid. Additionally, Jersey Mike’s requires a minimum of three to five investors per franchise, each investing at least a minimum of $50,000. It is important to note that these requirements could vary based on the type of franchise you are seeking.
2. What Training and Support Does Jersey Mike’s Provide?
When investing in a franchise, it is important to know what type of training and support you can expect. When investing in a Jersey Mike’s franchise, franchisees will receive a comprehensive five-week training program, both in classroom and in-store, along with an initial visit from a Jersey Mike’s field consultant. Potential franchise owners should also consider what type of support they can expect from the franchise after the initial training is completed. Jersey Mike’s provides ongoing support for their franchisees including financial analysis, marketing support, and remote access to scores of a franchise operation.
3. What are the Ongoing Costs?
When investing in a franchise, it is important to have an accurate understanding of the ongoing fees and costs associated with franchise ownership.
When investing in a Jersey Mike’s franchise, it is important to understand the cost of goods, royalty fees, advertising fees, and operational costs. The royalty fees are a flat fee of 6% of total net sales, with additional advertising fees of 4% of total net sales being used to promote the company brand.
In addition to the fees and costs, potential franchisees should also consider the working capital needed when opening a Jersey Mike’s franchise. Jersey Mike’s recommends having a total working capital of between $125,000 to $205,000.
4. What are the Benefits?
Now that we’ve gone over the requirements and ongoing costs of investing in a Jersey Mike’s franchise, let’s discuss the benefits. It’s important to know what is in it for you as an investor, other than a potential successful business.
When investing in a Jersey Mike’s franchise, you can benefit from the established trust of the brand and loyal fan base. Working with such a reliable and recognizable brand can help potential owners reduce the risk associated with starting a business.
In addition to this, investing in a Jersey Mike’s franchise can provide potential franchisees with the flexibility to run their business while still spending time with their family. With Jersey Mike’s proven systems and training, combined with the support and guidance from Jersey Mike’s representatives, founder John Geisen made it possible for aspiring investors to run their business without being consumed by it.