When is the $12,500 payment due to Jersey Mikes for the grand opening advertising program?
Jersey_Mikes Franchise · 2025 FDDAnswer from 2025 FDD Document
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- 10.3 Franchisee shall pay Franchisor Twelve Thousand Five Hundred Dollars ($12,500.00) for Franchisor's use in conducting a grand opening advertising program to promote the opening of the Franchised Restaurant; provided, however, that in the event of a transfer as described in Section 19.2 of this Agreement, or in the event of a Franchisor-approved relocation as described in Section 3.1 of this Agreement, Franchisee shall pay Franchisor Five Thousand Dollars ($5,000.00) for Franchisor's use in conducting such program. The payment is due in full on the date Franchisee signs a lease for the Premises, or a contract to purchase the Premises, a
Source: Item 22 — CONTRACTS (FDD page 77)
What This Means (2025 FDD)
According to Jersey Mike's 2025 Franchise Disclosure Document, a new franchisee is required to pay $12,500 to Jersey Mike's for the grand opening advertising program. This fee covers Jersey Mike's costs to promote the opening of the franchised restaurant. However, if there is a transfer of ownership or a franchisor-approved relocation, the fee is reduced to $5,000.
The $12,500 payment is due in full when the franchisee signs a lease for the premises or a contract to purchase the premises. The franchisee is required to make this payment via its automatic clearing house (ACH) account, as described in Section 11.2 of the agreement.
This grand opening advertising fee is a fairly standard practice in franchising, as franchisors typically require franchisees to contribute to advertising and marketing efforts. The ACH payment method ensures that Jersey Mike's receives the funds promptly and efficiently. Prospective franchisees should factor this cost and payment timing into their initial investment calculations.