Jersey Mike's Subs

Jersey Mike's, headquartered in Manasquan, N.J., is a quick-service restaurant that specializes in premium subs and sandwiches. The company was founded in 1956, was purchased by the current CEO, Peter Cancro in 1975, and began its franchising initiatives in 1987. Peter Cancro currently holds 100% of Jersey Mike's voting shares. The Jersey Mike's sy... stem included 3,000 domestic restaurants, all of which operate in the casual quick-service restaurant industry. The company operates as a single brand of restaurants in 48 states and Washington D.C. Jersey Mike's also has a small presence in Canada. Within the U.S., the company has modest geographic diversity, with the top three states accounting for 31% of all domestic restaurants. Jersey Mike's has expanded significantly over the past decade. Since 2006, the company has grown to 2,025 units in the U.S. from 324 units with a cumulative average growth rate of approximately 13%. The company expects to continue its current rate of expansion, with a committed development pipeline of over 1000 restaurants, of which 250 are expected to open in 2022. Since 2006, Jersey Mike's has been a 99% franchised system, which remains the target proportion of franchised restaurants in the pool. CEO Peter Cancro and his family control 60 units, which are considered "franchised" according to the terms of the securitization. If these units were to be considered corporate owned, 96% of the system would still be franchised. Jersey Mike's franchisee base is diverse, with 536 U.S. franchisees operating an average of approximately four restaurants each, and the largest franchisee operating approximately 3% of the total branded restaurants. Of these 536 franchisees, 201 are single-restaurant operators. The top 10 franchisees in the U.S. have an average tenure of approximately 10 years and operate an average of 36 restaurants each. The company typically executes and agrees on 10-year franchise agreements with its franchisees, with the option to renew for an additional 10-year term. The royalty ...Read More