How to Finance a Jersey Mike’s Franchise: Costs and Qualifying
By Chris Cornella
A Jersey Mike’s franchise loan usually pays for far more than the franchise fee. Opening or buying one of these sub shops means financing leasehold improvements in a shopping center space, a deli line built around fresh slicing, signage, a point-of-sale system, opening inventory, training and enough working capital to carry the restaurant until sales settle into a rhythm. How you structure that financing can shape your cash flow for years.
This guide walks through what the brand’s disclosure document says it costs to open, the ongoing fees a lender will build into your projections, the ways to become an owner, the loan programs that may fit and what underwriters look for in a Jersey Mike’s deal. US Professional Funding is not affiliated with, sponsored by or endorsed by Jersey Mike’s; the name is used only to describe the business. Figures below come from the franchisor’s disclosure document and the company’s own public filings, and they can change. Loan programs, terms and eligibility vary by lender and borrower, every loan is subject to underwriting and approval, and nothing here is legal, tax or investment advice.
Jersey Mike’s Franchise Loan at a Glance
The key numbers below come from A Sub Above, LLC’s Franchise Disclosure Document issued in April 2024 and from a 2026 company filing by Jersey Mike’s Subs. Always confirm them against the disclosure document you actually receive.
- Initial franchise fee: $18,500 for a standard franchise agreement under the 2024 FDD; the 2026 filing describes $20,000 per store opened under an area development agreement
- Royalty: 6.5% of gross receipts, paid weekly
- Advertising: a 1.0% Corporate Advertising and Development Fund contribution plus a 4.0% National Media Fund contribution in the 2024 FDD, with combined advertising payments capped at 6% of gross receipts
- Estimated initial investment: $203,583 to $1,317,005 for a typical shopping center restaurant, according to Item 7 of the 2024 FDD
- Franchise term: an initial term of 10 years with a 10-year renewal option, subject to conditions, as described in the 2026 filing
- System size: more than 3,300 locations across all 50 states and Canada, nearly all franchised, as of 2026
- SBA Franchise Directory: listed under code S0901 as “Jersey Mike’s Subs; Jersey Mike’s,” with three notes covering real estate collateral
The materials we reviewed do not publish a single minimum net worth or liquidity figure, so expect the franchisor and your lender to assess your finances directly.
What Is Jersey Mike’s?
Jersey Mike’s traces its roots to a sub shop that opened in 1956. Peter Cancro bought the shop at age 17 with a loan from his football coach, and the company began franchising in 1987. Its headquarters today is in Tinton Falls, New Jersey. Franchises are offered by A Sub Above, LLC, a Delaware company that took over franchising from its parent, Jersey Mike’s Franchise Systems, Inc., in December 2019.
The concept is made-to-order submarine sandwiches for dine-in, carryout, delivery and catering. Deli meats and cheeses are sliced fresh to order and vegetables are cut daily in each store, so the front counter doubles as a prep line. That operating model drives both the equipment list and the labor plan a lender will want to see.
Most restaurants sit in shopping centers. The 2024 FDD bases its cost estimates on a typical restaurant of about 1,000 to 2,000 square feet in a retail center, and the 2026 filing describes the traditional store as an in-line or end-cap space averaging roughly 1,500 square feet, with new builds targeted at 1,200 to 1,400 square feet.
Lenders tend to view the brand as a familiar, small-footprint quick-service concept. Because the store is typically leased rather than owned, a Jersey Mike’s franchise loan is usually underwritten as a business loan secured by equipment, leasehold improvements and the owner’s guarantee, not as a real estate loan.
Jersey Mike’s Franchise Costs
Item 7 of the disclosure document is the starting point for any budget. It estimates what a franchisee spends from signing through the first three months of operation. The wide range reflects real differences in markets, the condition of the space and how much construction the landlord performs.
Initial Franchise Fee
The 2024 FDD lists an initial franchise fee of $18,500 for a standard franchise agreement, paid when you sign. Area development fees in that document range from $50,000 for three franchises to $120,000 for ten. The company’s 2026 filing describes a newer structure of a $10,000 area development fee and a $20,000 initial franchise fee per store opened under the agreement. The disclosure document you receive controls, so confirm the current fee schedule before building your loan request.
The 2024 FDD also describes reduced development and franchise fees for existing franchisees who open additional stores by certain deadlines, which can lower the cash needed for a second or third unit.
Leasehold Improvements and Real Estate
Build-out is the largest and most variable cost. The 2024 FDD estimates leasehold improvements at $101,200 to $586,363, architectural fees at $2,125 to $25,979 and a real estate and construction fee of $5,000 paid to the franchisor. Rent, common area charges, taxes and deposits for the first three months range from $0 to $57,069. The 2026 filing reports an average build cost of approximately $515,000, excluding pre-opening and training costs, which gives a sense of where many new stores land within the range.
Tenant improvement allowances and landlord work can reduce what you finance, so read the lease and work letter carefully.
Equipment, Furniture and Technology
Equipment, furniture and small wares are estimated at $27,991 to $243,152, the second-largest swing in the table. Technology adds a required POS system, a connection to the franchisor’s private network and a POS license fee, all of which a lender can fold into the loan.
Opening Costs and Working Capital
Pre-opening items include grand opening advertising, opening inventory, insurance, training travel and wages, professional fees and permits. The FDD sets additional funds at $15,000 for the first three months. Many owners and lenders prefer a larger cushion, because ramp-up rarely follows a straight line.
Total Estimated Investment
According to the 2024 FDD, the total estimated initial investment for a single shopping center restaurant is $203,583 to $1,317,005. The estimate excludes freestanding, drive-thru, international and non-traditional locations. The line items are:
- Initial franchise fee: $18,500
- Real estate and construction fee: $5,000
- Rent, common area charges, taxes and security deposits for three months: $0 to $57,069
- Architectural fees: $2,125 to $25,979
- Leasehold improvements: $101,200 to $586,363
- Equipment, furniture and small wares: $27,991 to $243,152
- Initial inventory: $2,698 to $37,850
- Insurance: $1,000 to $9,800
- Training: $1,000 to $68,000
- Grand opening advertising: $12,500
- Exterior signage: $2,145 to $52,978
- Interior branding and graphics: $1,610 to $14,470
- Uniforms, office equipment, TVs, sound and security: $1,000 to $70,639
- POS system: $5,064 to $29,598
- POS connection to private network: $4,000
- POS license fee: $2,000 to $4,000
- Professional fees: $250 to $34,107
- Business licenses and permits: $500 to $28,000
- Additional funds for three months: $15,000
Ongoing Fees and How They Affect Your Loan
Lenders do not stop at the opening budget. They project whether the restaurant can cover its operating costs, its franchise fees and its loan payments with room to spare. Fees paid as a percentage of sales come off the top before any debt service.
Royalty. The royalty is 6.5% of gross receipts under both the 2024 FDD and the 2026 filing, and the FDD calls for weekly payment.
Advertising funds. The 2024 FDD lists a Corporate Advertising and Development Fund contribution of 1.0% of gross receipts, which the franchisor may raise, and a National Media Fund contribution of 4.0%, with combined advertising payments capped at 6%. The 2026 filing describes a total advertising fund contribution of 5.0% of gross receipts.
Technology fees. The 2024 FDD lists POS software and support at $395 per month, which may rise to $795, a secure network fee of $31.85 per month, which may rise to $39.85, a gift card program fee of $9.50 per month and an optional scheduling software fee of $53.50 per month.
Transfer fee. A $5,000 fee applies to transfer a franchise agreement, which matters on resales.
Remodels and upgrades. Expect equipment and appearance updates over a 10-year term and at renewal. Ask the franchisor what is required and build a reserve, or plan to finance it when the time comes.
When a lender models a store, percentage fees reduce the cash available for debt service, and fixed technology fees act like rent. A projection that ignores the combined royalty and advertising load can look affordable on paper and tight in practice.
Franchisor Requirements for New Owners
The materials we reviewed do not publish a single minimum net worth or liquid capital requirement for U.S. franchisees, so treat any figure you see elsewhere with caution and ask the franchisor directly. What the company’s filings do make clear is how the system grows: more than 630 unique franchise owners operated stores as of late 2025, and more than 90% of the development pipeline was held by existing franchise owners as of mid-2026. Much of the brand’s growth comes from operators who already own stores.
Expect the franchisor to review your finances, management background and commitment to running the restaurant. New franchisees typically sign an area development agreement for a set number of stores within a designated area on a set timeline, plus a separate franchise agreement for each restaurant. The 2024 FDD notes that the territory under a development agreement is nonexclusive.
Coordinate franchisor approval with your financing, since each side will want evidence of the other.
Ways to Own a Jersey Mike’s
Opening a new restaurant. Most owners enter by signing a development agreement and building new stores. Financing covers build-out, equipment, fees and working capital, and lenders underwrite projections rather than history. Our page on financing a new franchise location outlines that process.
Buying an existing restaurant. A resale comes with sales history, trained staff and equipment in place, which lets a lender underwrite actual results. The franchisor must approve the buyer, a transfer fee applies and the landlord usually must consent to a lease assignment. Learn more about franchise acquisition financing.
Multi-unit development. Because the system grows through development agreements, many owners plan for several restaurants from the start. Financing usually comes store by store, with each new unit supported by the performance of the ones already open.
Non-traditional sites. Airport, campus and venue locations fall outside the standard Item 7 estimate and may need a different underwriting approach.
Financing Options for a Jersey Mike’s Franchise
SBA 7(a) Loans
SBA 7(a) loans are a frequent fit for a shopping center restaurant because one loan can cover leasehold improvements, equipment, franchise fees, opening inventory and working capital. They can also finance the purchase of an existing restaurant. Eligibility depends on the borrower, the use of proceeds, program rules and lender approval.
SBA 504 Loans
SBA 504 loans are built for owner-occupied real estate and long-lived fixed assets. They fit a Jersey Mike’s only in narrower cases, such as an owner who buys the building or pad where the restaurant will operate, or a multi-unit operator acquiring property. The SBA directory notes discussed below apply directly to those real estate deals.
Conventional Term Loans
Experienced operators with several stores, strong liquidity and solid financials may qualify for conventional business loans for new units or acquisitions. Terms, collateral and guarantee requirements vary widely, and some conventional lenders focus on established multi-unit groups.
Equipment Financing
A Jersey Mike’s line relies on deli slicers, refrigeration, sandwich prep units, ovens, a grill for hot subs, beverage equipment and the POS system. These assets can sometimes be financed separately, with the equipment as collateral, preserving cash for the build-out. See our restaurant equipment financing and leasing options.
Working Capital and Lines of Credit
Working capital covers pre-opening payroll during training, inventory, the gap before sales stabilize and swings in catering orders. Owners also plan around the brand’s annual Day of Giving on the last Wednesday of March, when participating stores donate all of that day’s sales to charity. A cash cushion or line of credit helps a store absorb that kind of planned dip. Read more about restaurant working capital and lines of credit.
Seller Financing on Resales
When buying an existing restaurant, a seller may agree to carry part of the price. A seller note is typically subordinate to the primary loan, and SBA rules and lenders may limit how such notes are structured, including when payments may begin. Our article on seller financing when buying a restaurant covers the details.
SBA Loans for Jersey Mike’s Franchisees
SBA loans are made by participating lenders, with the SBA guaranteeing a portion of the loan. The SBA 7(a) program maximum is currently $5 million, although program rules can change. For franchise borrowers, the lender must confirm that the franchise relationship meets SBA eligibility rules, and the SBA Franchise Directory simplifies that review.
The Jersey Mike’s SBA Directory Listing
Jersey Mike’s is listed on the SBA Franchise Directory under code S0901, “Jersey Mike’s Subs; Jersey Mike’s.” A listing means the franchise agreement has been reviewed for SBA lending purposes. It does not approve any borrower or guarantee a loan. The listing carries three notes, and all of them concern real estate and collateral:
- The lease rider may not be used when the property secures the loan. Franchisors often require a lease rider, an addendum to the store lease that gives the franchisor certain rights in the space. If the real estate where the restaurant sits will be collateral for the SBA loan, usually because the owner or an affiliate owns it, that rider may not be signed. The lender’s interest in the property comes first.
- No franchisor purchase option on owner-held collateral. If the franchisee or a related company owns the real estate and pledges it for an SBA loan, the franchisor may not enforce a right to buy that property. This prevents a franchisor option from undercutting the lender’s collateral.
- Lenders must get the right lien position. The lender, or the certified development company on a 504 loan, must obtain the lien position required under the SBA’s lending rules, known as SOP 50 10, for every piece of collateral.
For a typical leased shopping center store, the first two notes may never come into play. They matter when you buy the building, own the pad through a separate company or acquire a restaurant with its real estate, so share those documents with your lender early.
SBA Application Tips
Submit a complete package, with projections that include royalty, advertising and technology fees, so the lender’s review goes more smoothly. Our SBA loan calculator can help you estimate payments while you plan; results are for planning only and are not an offer.
How Lenders Evaluate a Jersey Mike’s Deal
Personal Credit and Financial History
Expect a full review of personal credit, tax returns and past business debts, and personal guarantees from the principal owners.
Net Worth and Liquidity
Lenders want to see cash for your equity injection plus reserves left after closing. The FDD’s three-month additional funds estimate is a floor, not a target, in most lenders’ eyes.
Management and Restaurant Experience
A quick-service restaurant depends on staffing, food cost control and speed during the lunch rush. Experience managing a restaurant, a retail store or a team of hourly employees strengthens an application. If you lack it, a plan to hire an experienced general manager can help.
Business Plan and Projections
Projections should reflect the brand’s model: a small in-line store, a lunch-heavy daypart, digital and delivery orders, catering, fresh product waste and weekly royalty and advertising draws. Underwriters will test those assumptions against the site.
The FDD and Franchise Agreement
Lenders read the term, renewal conditions, transfer rules and default provisions, along with any lease rider. They also confirm that the franchise appears on the SBA directory when an SBA loan is involved. The 2024 FDD states that the franchisor does not offer financing except to participants in its Coach Rod Smith Program, who may be able to finance certain fees through the franchisor.
Site and Lease
The lease term should cover at least the loan term, including renewal options. Lenders review rent, common area charges, tenant improvement allowances, assignment clauses and landlord waivers that allow the lender access to equipment.
Historical Financials on a Resale
For an existing restaurant, lenders study tax returns, profit and loss statements, sales reports, labor and food cost trends and the condition of equipment. Our restaurant due diligence checklist lists the records worth gathering before you sign.
Equipment and Build-Out: What You Are Actually Financing
The fresh-sliced format puts the deli line at the center of the store. Slicers, refrigerated prep tables and walk-in coolers carry much of the food safety burden, so lenders and franchisors both care about their condition and maintenance. Hot subs require ovens and a flat-top grill, which in turn drive hood, ventilation and fire suppression costs inside the leasehold improvements line.
Front-of-house items, including the counter, seating, interior branding and signage, round out the build, along with ordering tablets and network gear tied to the required POS.
On a resale, ask for an equipment list with ages and service records. Aging equipment is better funded in the original loan than discovered after closing.
Multi-Unit Growth and Development Agreements
Jersey Mike’s growth runs through development agreements, and the company reports that about 80 owners operated 10 or more stores as of late 2025. A development schedule commits you to opening stores by set deadlines, which means your financing plan has to keep pace.
Lenders typically finance each new store as it is ready, looking at open-store performance, total debt and available cash. Global cash flow, which combines every store and the owner’s personal obligations, becomes the key measure as you grow.
Plan the timing carefully. Missing development deadlines can have consequences under the agreement, so align site selection, construction and loan approvals with the schedule. Our article on financing an area development agreement walks through how operators fund a multi-unit schedule.
Real-World Scenarios
A restaurant manager opening a first store. A general manager with years of quick-service experience signs a development agreement. She uses an SBA 7(a) loan to cover build-out, equipment, fees and working capital, and negotiates a tenant improvement allowance that reduces the amount she needs to borrow.
A buyer acquiring an existing restaurant. A buyer finds an established store whose owner is retiring. The lender underwrites the restaurant’s tax returns and sales history, the franchisor approves the buyer and the landlord consents to the lease assignment. The seller carries a small subordinate note.
An owner buying the building. An operator has the chance to buy the small retail building that houses his store. He looks at an SBA 504 loan, and because the property will secure the loan, his lender confirms that the franchisor’s lease rider will not be executed and that no purchase option can be enforced against the property.
Common Mistakes to Avoid
- Budgeting from the low end of Item 7 without confirming landlord work and local construction costs
- Leaving only the FDD’s three-month additional funds and no cushion for a slow ramp-up
- Projecting sales without subtracting the royalty, advertising and technology fees
- Signing a lease with a term shorter than the loan or without a clear assignment clause
- Committing to a development schedule without a financing plan for each store
- Overlooking the SBA directory notes when the real estate will be collateral
For a deeper look, read the restaurant loan mistakes that cost owners the most.
Next Steps to Finance Your Jersey Mike’s Franchise
Step 1: Review the disclosure document. Read the current FDD with a franchise attorney, focusing on Items 5, 6, 7, 10, 12, 17 and 19, the franchise agreement and any lease rider.
Step 2: Decide how you will enter. Choose between a new development agreement, buying an existing restaurant or adding units to an existing group.
Step 3: Build a full budget. Start with the Item 7 categories, replace estimates with real bids and add a contingency and a working capital cushion.
Step 4: Talk with a financing specialist early. Confirm which programs may fit, how much equity you will likely need and how the SBA directory notes affect your collateral.
Step 5: Secure the site. Negotiate the lease or purchase with financing in mind, including term, assignment rights and tenant improvement allowances.
Step 6: Assemble your loan package. Gather tax returns, a personal financial statement, a resume, the franchise documents, the lease, bids and projections.
Step 7: Coordinate approvals and close. Align franchisor approval, landlord consent and loan approval so construction or the ownership transfer can start on schedule.
Jersey Mike’s Franchise Loan FAQs
How much does it cost to open a Jersey Mike’s?
According to the 2024 FDD, the estimated initial investment for a typical shopping center restaurant is $203,583 to $1,317,005. The 2026 company filing reports an average build cost of approximately $515,000, excluding pre-opening and training costs.
What is the Jersey Mike’s franchise fee?
The 2024 FDD lists $18,500 for a standard franchise agreement. The 2026 filing describes $20,000 per store opened under an area development agreement, plus a $10,000 development fee. Confirm the current figure in the FDD you receive.
What royalty does Jersey Mike’s charge?
The royalty is 6.5% of gross receipts, paid weekly. Advertising contributions are separate and are capped at 6% of gross receipts combined under the 2024 FDD.
How much liquid capital or net worth do I need?
The materials we reviewed do not state a single minimum. The franchisor reviews each candidate’s finances, and lenders will want to see cash for your equity injection plus post-closing reserves.
Is Jersey Mike’s eligible for SBA loans?
Jersey Mike’s is listed on the SBA Franchise Directory under code S0901, which simplifies the lender’s review of the franchise agreement. Eligibility still depends on the borrower, the project and lender approval.
Can I finance equipment separately?
Often, yes. Slicers, refrigeration, ovens and POS hardware can sometimes be financed on their own, with the equipment as collateral, subject to lender approval.
Can I buy an existing Jersey Mike’s?
Yes, subject to franchisor approval of the buyer, a $5,000 transfer fee under the 2024 FDD and landlord consent to the lease assignment. Lenders underwrite the restaurant’s actual financial history.
Can a first-time business owner get a Jersey Mike’s franchise loan?
It may be possible. Lenders weigh restaurant or management experience heavily, so a first-time owner may strengthen a request with relevant work history or an experienced manager.
Does Jersey Mike’s offer financing?
According to Item 10 of the 2024 FDD, the franchisor does not offer financing except to participants in its Coach Rod Smith Program, who may be able to finance certain fees. Most owners use outside lenders.
How long is the franchise agreement?
The 2026 filing describes an initial term of 10 years with a 10-year renewal option, subject to certain conditions.
What documents do I need to apply?
Expect tax returns, a personal financial statement, a resume, the franchise documents, a lease or letter of intent, bids and projections; resales add the seller’s financials.
Final Thoughts
A Jersey Mike’s franchise loan works best when the budget reflects the real lease, real build-out bids and the full weight of franchise fees. The brand’s small footprint and SBA directory listing give prepared owners a clear path when financing is planned store by store.
US Professional Funding helps buyers and owners finance new franchise locations, acquisitions, equipment and working capital. Learn more about our franchise financing and restaurant financing.
