When is the $12,500 Grand Opening advertising fee due for a Jersey Mikes franchise?
Jersey_Mikes Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Expenditure | Actual or Estimated Amounts | Method of Payment | When Due | To Whom Payment Is To Be Made |
|---|---|---|---|---|
| Grand Opening | $12,500 | Lump Sum | On Signing Lease | Company |
| Advertising9 |
- 9 Grand Opening Advertising. When you sign the lease for your Franchised Restaurant, you must pay Company $12,500, which Company will use to conduct a Grand Opening Advertising program to promote your Restaurant.
Company will consult with you about the development and implementation of the program, but has sole discretion as to how the amount will be spent.
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 24–28)
What This Means (2025 FDD)
According to Jersey Mikes's 2025 Franchise Disclosure Document, the $12,500 Grand Opening advertising fee is due when you sign the lease for your franchised restaurant. This fee is a lump sum payment that Jersey Mikes will use to conduct a Grand Opening Advertising program to promote your restaurant. While Jersey Mikes will consult with you about the development and implementation of the program, they retain sole discretion over how the funds are spent.
This means that as a prospective franchisee, you need to have $12,500 available when you sign your restaurant lease. This money is specifically earmarked for the Grand Opening advertising campaign, which Jersey Mikes manages. While you'll have input, the final decisions on how the money is spent are up to Jersey Mikes.
Grand opening advertising is a fairly standard practice in franchising. It's important for franchisees to understand when these fees are due and what they cover, as they can significantly impact the initial investment required to start the business. The table in Item 7 of the FDD provides a summary of when various fees are due, which can be helpful for planning purposes.