What agreement provision is being summarized in this section of the Jersey Mikes Franchise Disclosure Document?
Jersey_Mikes Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section in Franchise | Summony |
|---|---|---|
| FIOVISION | Agreement | Summary |
| p. Your death or disability | Section 20 | Your heirs, beneficiaries, devisees or legal representative can apply to Company to continue operation of the Franchised Restaurant or sell or otherwise transfer interest in the Franchised Restaurant following death or incapacity of any person owning 50% or more interest in Franchisee. If they fail to meet these conditions, the Franchise Agreement will terminate and Company will have the option to buy the Franchised Restaurant. |
| q. Non-competition covenants during the term of the franchise | Section 16.3 | You must not divert or attempt to divert any business or customer to a competitor, or perform any a ct which may harm the goodwill associated with the marks and the System; or own or otherwise have any interest in a ny business (including a business you currently operate) specializing in the sa le of submarine-type sandwiches or prepared food products the same as or similar to any product or service provided through the System. |
| r. Non-competition | Section 16.4 | You must not own, maintain, engage in, consult with or have any interest in any business specializing in the sale of submarine-type sandwiches or prepared food products the same as or similar to any other product or service provided through the System for 2 years after the Franchise Agreement is terminated within the Metropolitan Statistical Area, as defined by the United States Census Bureau, in which the Franchised Restaurant is located or within a 10-mile radius of the Franchised Restaurant or within a 10-mile radius of any other business using the System. |
| covenants after the | ||
| franchise is terminated | ||
| or expires | ||
| s. Modification of the agreement | Sections 9, 22 and 25 | The Franchise Agreement can be modified only by written agreement between Company and you. Company can modify or change the System through changes in the Confidential Operations Manual. |
| t. Integration/merger clause | Sections 25 | Only the terms of the Franchise Agreement and other related agreements are binding. No other representations or promises will be binding. Nothing in the Franchise Agreement or any other related written agreement is intended to disclaim representations made in the franchise disclosure document (subject to state law). |
| u. Dispute resolution | Section 27 | All disputes subject first to mediation and, if not resolved through mediation, submitted to binding arbitration. Both mediation and arbitration will be conducted in Monmouth County, New Jersey (See state specific addenda) |
| by arbitration or | ||
| mediation | ||
| v. Choice of forum | Section 27.2 | Any arbitration or permitted legal action will be brought in the appropriate state or federal court in New Jersey. (See state specific addenda) |
| w. Choice of law | Section 27.1 | New Jersey law applies (subject to state law), except that disputes regarding the marks will be governed by the United States Trademark Act of 1946 (Lanham Act, 15 U.S.C. Sec. 1051 et seq.), and the New Jersey Franchise Practices Act (N.J. Stat. Ann. Sec. 56:10-1 et seq.) only will apply if the Restaurant is located in New Jersey. (See state specific addenda) |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 57–64)
What This Means (2025 FDD)
According to Jersey Mikes's 2025 Franchise Disclosure Document, the table summarizes key provisions within the franchise agreement, outlining various aspects of the relationship between Jersey Mikes and the franchisee. These provisions cover a range of topics, including the franchisee's obligations upon termination or non-renewal of the agreement, what happens in the event of the franchisee's death or disability, non-competition covenants both during and after the franchise term, the process for modifying the agreement, integration/merger clauses, dispute resolution methods, choice of forum, and choice of law.
The summary provides a quick reference to the specific sections within the franchise agreement that address each provision. For instance, it clarifies the franchisee's responsibilities when the agreement ends, such as ceasing operations, assigning the lease (if requested by Jersey Mikes), and de-identifying the premises. It also details the non-compete obligations, preventing franchisees from engaging in similar businesses during and for a period after the franchise term, typically within a defined geographic area.
Understanding these provisions is crucial for potential Jersey Mikes franchisees as they highlight the legal and operational commitments they are making. The dispute resolution section is particularly important, specifying that disputes will first undergo mediation and then binding arbitration, both conducted in Monmouth County, New Jersey. The choice of law provision indicates that New Jersey law generally governs the agreement, with exceptions for trademark disputes and situations where the restaurant is located in New Jersey, in which case the New Jersey Franchise Practices Act may apply. These factors all influence the franchisee's rights, responsibilities, and potential liabilities.