What actions must a Jersey Mikes franchisee complete prior to opening their restaurant?
Jersey_Mikes Franchise · 2025 FDDAnswer from 2025 FDD Document
claims or causes of action which Franchisee or its guarantors may have had under to this Agreement.
- 3.6 Franchisee agrees that promptly af ter obtaining possession of the site for the Franchised Restaurant it will: (i) hire a licensed architect approved by Franchisor, (or if Franchisee chooses to hire an architect not approved by Franchisor, pay Franchisor a fee of Five Thousand Dollars ($5,000.00) to cover Franchisor's costs for oversight of an unapproved architect), to prepare and submit for approval by Franchisor a site survey and any modification to Franchisor's basic architectural plans and specifications (which plans may require modification in order to construct a JERSEY MIKE'S Restaurant), including requirements for dimensions, exterior design, materials, interior design and layout, equipment, fixtures, furniture, signs and decorating, required for the development of a JERSEY MIKE'S Restaurant at the site leased or purc hased therefore, provided that Franchisee may mod ify Franchisor's basic plans and specifications only to the extent required to comply with all applicable ordinances, building codes and permit requirements and with prior notification to and approval by Franchisor; (ii) hire a licensed contractor approved by Franchisor to construct the Franchised Restaurant or, if Franchisee chooses to hire a contractor not approved by Fr anchisor, pay Fr anchisor a f ee of F ive Thousand D ollars ($5,000.00) to cover Franchisor's costs for periodic inspections of construction site to ensure compliance with System Standards; (iii) obtain all required zoning changes; all required building, utility, health, sanitation, and sign permits and licenses and any other required permits and licenses; (iv) pur chase or lease equipment, fixtures, furniture and signs a s provided in this Agreement; (v) complete the construction and/or remodeling, equipment, fixtures, furniture and sign installation and decorating of the Franchised Restaurant in full and strict compliance with plans and spe cifications therefore approved by F ranchisor and a ll applicable ordinances, building codes and permit requirements; (vi) obtain all customary contractors' sworn statements and partial and final waivers of lien for construction, remodeling, decorating and installation services; and (vii) otherwise complete development of and have the Franchised Restaurant ready to open and commence the conduct of its business in accordance with Section 13 of this Agreement.
- 3.7 Franchisee agrees that it will pay Fr anchisor a fee of Five Thousand Dollars ($5,000.00) for Franchisor's assistance with the real es tate and construction processes as Franchisee develops its Franchised Restaurant. This fee shall be non-refundable. The fee is due in full on the date Franchisee signs a lease for the Premises, or a contract to purchase the Premises, and Franchisee shall pay via its automatic clearing house (ACH) account as described in Section 11.2.
4. SPECIFICATIONS
- 4.1 Franchisee shall comply with all Franchisor's mandatory specifications, standards, operating procedures and rules prescribed from time to time by Franchisor for the System (the "System Standards").
- 4.2 Franchisor may provide Franchisee with specifications for brands and types of food and beverage preparation, dispensing, storage and display equipment, cash registers, other equipment, fixtures, furniture, exterior and interior signs and decorating required to meet Franchisor's System Standards for the Franchised Restaurant.
Source: Item 22 — CONTRACTS (FDD page 77)
What This Means (2025 FDD)
According to Jersey Mike's 2025 Franchise Disclosure Document, a franchisee must fulfill several obligations before opening their restaurant. These include architectural and construction-related tasks, obtaining necessary permits and licenses, purchasing or leasing required equipment, and completing the construction and setup of the restaurant according to Jersey Mike's approved plans. Specifically, after obtaining the site, the franchisee must promptly hire a licensed architect approved by Jersey Mike's to prepare a site survey and any modifications to the franchisor's architectural plans. If the franchisee hires an unapproved architect, they must pay Jersey Mike's a fee of $5,000.00 to cover oversight costs.
The franchisee must also hire a licensed contractor approved by Jersey Mike's for the construction. Similar to the architect, using an unapproved contractor incurs a $5,000.00 fee for inspection costs. Furthermore, the franchisee needs to secure all necessary zoning changes, building permits, utility connections, health and sanitation permits, and sign permits. They must also purchase or lease the required equipment, fixtures, furniture, and signs as specified in the franchise agreement.
In addition to the construction and logistical requirements, the franchisee and their designated personnel must complete Jersey Mike's initial training program. For a franchisee opening their first location, three individuals (Trainees 1, 2, and 3) must complete Phase 1, Trainee 1 must complete Phase 2, and Trainees 1 and 2 must complete Phase 3 of the training. Trainees 1 and 2 must also attend and participate in the grand opening of another Jersey Mike's restaurant. Completing these steps ensures that the restaurant meets Jersey Mike's standards and is ready to commence business operations in accordance with the franchise agreement.