What activities are Jersey Mikes franchisees prohibited from engaging in?
Jersey_Mikes Franchise · 2025 FDDAnswer from 2025 FDD Document
tion with any person, persons, partnership, corporation, limited liability company or other entity:
- a. Divert or attempt to divert any busi ness or c ustomer of the business fra nchised hereunder to any c ompetitor, by di rect or indire ct inducement, or disparage or otherwise speak or write negatively, directly or indirectly, of Franchisor, its affiliates, any of Franchisor's directors, officers, employees, representatives, owners, current and former franchisees or de velopers, the JERSEY MIKE's brand, the System, any JERSEY MIKE's Restaurant, any business using the Marks, any other brand or service-marked or trademarked concept of Franchisor or its affiliates, or which would subject the System to ridicule, scandal, reproach, scorn or indignity, or which would be injurious or prejudicial to the goodwill associated with Franchisor's Marks and the System, or which would constitute an act of moral turpitude.
- b. Own, maintain, engage in, or have any interest in any business (including any business operated by Franchisee prior to entry into this Agreement) specializing in whole or in part, in the sale of submarine-type sandwiches or prepared food products the same as or similar to any product or service sold in the System.
- 16.4 Franchisee specifically acknowledges that, consistent with this Agreement, Franchisee will receive valuable training and confidential information, including without limitation, information regarding the promotional, operational, sales and marketing methods and techniques of Franchisor and the System. Accordingly, Franchisee covenants that except as otherwise approved in writing by Franchisor, neither Franchisee nor any of Franchisee's immediate family members shall, for period of two (2) years after the expiration, Transfer or termination of this Agreement, or if later, the date upon which Franchisee complies with the covenants of this Agreement, regardless of the cause of termination, either directly or indirectly, for itself, or through, on behalf of, or in conjunction with any person, persons, partnership, corporation, limited liability company or other entity, own, maintain, engage in, or have any interest in any business
specializing, in whole or in part, in the sale of submarine-type sandwiches or prepared food products the same as or similar to any product or service sold within the System:
- a. Within the Standard Metropolitan Statistical Area ("SMSA") as that term is defined by the Census Bureau of the United States, in which the Franchised Restaurant is located; or
- b. Within a radius of ten (10) miles of the Premises hereunder; or
- c. Within a radius of ten (10) miles of the Premises of any other Jersey Mike's Restaurant.
- 16.5 Franchisee further agrees not to divulge to any person, partnership, corporation or any other entity any information which Franchisor identifies as proprietary, including, without limitation, any trade secrets, the ingredients, recipes, cooking techniques and processes, used in the sandwiches and other food products used in the System, any information stated in the Manual, any business plans, marketing plans, product pricing, rebates, and advertising plans.
Source: Item 15 — OBLIGATION TO PARTICIPATE IN THE ACTUAL OPERATION OF THE FRANCHISED RESTAURANT (FDD page 56)
What This Means (2025 FDD)
According to Jersey Mike's 2025 Franchise Disclosure Document, franchisees face several restrictions on their business activities. They are prohibited from diverting business to competitors, disparaging the Jersey Mike's brand, or engaging in activities that could harm the brand's reputation. This includes direct or indirect actions that negatively portray Jersey Mike's, its affiliates, or its franchisees. Franchisees also cannot own or have an interest in a business that specializes in submarine-type sandwiches or similar prepared food products, ensuring they do not directly compete with their own Jersey Mike's franchise.
Jersey Mike's franchisees are also restricted in how they operate their specific location. They cannot make material alterations to the restaurant's structure, equipment, or signage without prior written approval from Jersey Mike's. The premises must be used solely for operating a Jersey Mike's restaurant, and franchisees must sell all authorized food products and services while refraining from offering any unauthorized items. This ensures uniformity and adherence to the Jersey Mike's system standards across all locations.
Further prohibitions include actions that could damage the reputation of Jersey Mike's, such as being convicted of a felony. Franchisees are also barred from unauthorized use or disclosure of the franchise's manual or any confidential information. Abandoning the restaurant or failing to operate it actively for a specified period without approval is also prohibited, as is surrendering control of the restaurant's operation or making unauthorized transfers of the franchise. These restrictions are designed to protect the Jersey Mike's brand, maintain consistency, and ensure franchisees remain committed to the system's standards and operational requirements.