Are actions related to ownership or use of the marks subject to the mediation requirements for Jersey Mikes?
Jersey_Mikes Franchise · 2025 FDDAnswer from 2025 FDD Document
- EXCEPT AS OTHERWISE PROVIDED IN THIS AGREEMENT, ANY CLAIM OR CONTROVERSY ARISING OUT OF OR RELATED TO THIS AGREEMENT, OR THE MAKING, PERFORMANCE, BREACH, OR INTERPRETATION OF THIS AGREEMENT, EXCEPT FOR ANY ACTIONS BROUGHT WITH RESPECT TO: I) OWNERSHIP OR USE OF THE MARKS; II) SECURING INJUNCTIVE RELIEF PURSUANT TO SECTION 17.6 OF THIS AGREEMENT; III) ANY COVENANT LISTED WITHIN SECTION 9 OR CONDITIONS WITHIN SECTION 7 OF THIS AGREEMENT; IV) THE RIGHT TO INDEMNIFICATION OR THE MANNER IN WHICH IT IS EXERCISED: SHALL FIRST BE THE SUBJECT OF AN INFORMAL MEETING BETWEEN THE PARTIES TO RESOLVE THE DISPUTE AND THEN SUBJECT TO NON-BINDING MEDIATION.
Source: Item 22 — CONTRACTS (FDD page 77)
What This Means (2025 FDD)
According to Jersey Mikes's 2025 Franchise Disclosure Document, claims or controversies related to ownership or use of the marks are explicitly excluded from the mandatory mediation process. This means that if a dispute arises concerning the ownership or use of Jersey Mikes's trademarks, service marks, or trade names, either the franchisor or the franchisee can immediately pursue legal action without first engaging in informal meetings or non-binding mediation.
This exclusion is significant because it allows Jersey Mikes to protect its brand identity and intellectual property more swiftly. Disputes over trademarks can have substantial financial and reputational implications, so the ability to bypass mediation can be advantageous. For a franchisee, this could mean that if they believe Jersey Mikes is infringing on their use of a mark, they can take immediate legal action.
However, it's important to note that this exception only applies to disputes specifically concerning the ownership or use of the marks. All other claims or controversies related to the franchise agreement, such as those regarding performance, breach, or interpretation of the agreement, are subject to the informal meeting and mediation requirements before legal action can be pursued. This ensures that most disputes are first addressed through less adversarial methods, potentially saving time and legal costs.