What actions related to control or transfer of the Jersey Mikes franchise can lead to automatic termination?
Jersey_Mikes Franchise · 2025 FDDAnswer from 2025 FDD Document
- f.
Surrenders or transfers Control (defined in Section 31) of the operation of the JERSEY MIKE'S Franchised Restaurant, makes an un authorized direct or indirect Transfer (defined in Section 31) or fails or refuses to assign t he franchise or the intere st in Franchisee of a deceased or disabled Controll ing Principal as re quired by this Agreement;
Source: Item 22 — CONTRACTS (FDD page 77)
What This Means (2025 FDD)
According to Jersey Mike's 2025 Franchise Disclosure Document, surrendering or transferring control of the operation of the Jersey Mike's Franchised Restaurant, making an unauthorized direct or indirect transfer, or failing or refusing to assign the franchise or the interest in Franchisee of a deceased or disabled Controlling Principal as required by the agreement can lead to termination of the franchise agreement.
This means that a Jersey Mike's franchisee must maintain control over their restaurant's operations and any transfer of ownership or control must be approved by Jersey Mike's. Failure to do so can result in the termination of the franchise agreement. This is a fairly standard clause in franchise agreements, as franchisors want to ensure that franchisees are actively involved in the business and that any new owners meet their standards.
For a prospective franchisee, this highlights the importance of understanding the terms of the franchise agreement related to ownership and control. It is crucial to adhere to these terms to avoid potential termination. If a franchisee anticipates needing to transfer ownership or control in the future, they should familiarize themselves with the process and requirements outlined in the franchise agreement.