What acknowledgement does Jersey Mikes require regarding representations about potential sales, revenues, income, profits, or earnings of the franchised business?
Jersey_Mikes Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisor expressly disclaims the making of and Franchisee acknowledges that it has not received or relied upon, any warranty or guaranty, expressed or implied, as to the revenues, profits or success of the business venture contemplated by this Agreement. Franchisee acknowledges that it has read and understands this Agreement and Franchisor's Disclosure Document, and that no representations have been made by Franchisor, or its officers, directors, shareholders, employees or agents that are contrary to the statements made in Franchisor's Disclosure Document, or to the terms of this Agreement,
Source: Item 22 — CONTRACTS (FDD page 77)
What This Means (2025 FDD)
According to Jersey Mikes' 2025 Franchise Disclosure Document, a prospective franchisee must acknowledge that Jersey Mikes has disclaimed any warranties or guarantees, whether expressed or implied, regarding the potential revenues, profits, or overall success of the business venture. The franchisee must also acknowledge that they have not relied on any representations made by Jersey Mikes or its representatives that contradict the statements within the Franchise Disclosure Document or the terms outlined in the franchise agreement. This acknowledgement is a crucial part of the agreement, ensuring that the franchisee understands the risks involved and that their success is not guaranteed by Jersey Mikes.
This acknowledgement serves to protect Jersey Mikes from potential legal claims based on unrealistic expectations or projections. It emphasizes that the franchisee's success depends largely on their own business abilities and efforts. The franchisee confirms that they have read and understood the franchise agreement and the disclosure document, and that no conflicting representations have been made.
This type of disclaimer is standard practice in the franchise industry. It is the responsibility of the prospective franchisee to conduct their own due diligence, including market research and financial analysis, to assess the viability of the franchise opportunity. Consulting with legal and financial advisors is highly recommended to fully understand the implications of the franchise agreement and the potential risks and rewards involved in opening a Jersey Mikes franchise.