Does Jersey Mikes allow franchisees to designate how their payments are applied to past due debts?
Jersey_Mikes Franchise · 2025 FDDAnswer from 2025 FDD Document
All Continuing Royalty Fees, advertising contributions, gift card sales, amounts due for purchases by Franchisee from Franchisor and other amounts which Franchisee owes to Franchisor shall be paid through an automatic clearing house (ACH) account as further described in the Manual. Prior to or at the same time Franchisee acquires an interest in the real property on which Franchisee shall operate its Franchised Restaurant, Franchisee shall set up an ACH account and Franchisor shall have access to such account for the purpose of receiving payment for Continuing Royalty Fees, advertising contributions, gift card
Source: Item 22 — CONTRACTS (FDD page 77)
What This Means (2025 FDD)
Based on the 2025 Franchise Disclosure Document, the excerpts provided do not specify whether Jersey Mikes franchisees can designate how their payments are applied to past due debts. The document does outline the payment of continuing royalty fees, advertising contributions, and other amounts owed to Jersey Mike's, which are typically collected through an automatic clearing house (ACH) account. However, it does not detail the process for applying payments when a franchisee has outstanding debts.
Without specific information on payment allocation, it is unclear if a franchisee can direct payments to specific outstanding balances (e.g., applying a payment specifically to past-due royalties rather than advertising fees). This is a crucial aspect for franchisees managing their finances and wanting to control how their debts are settled.
Prospective Jersey Mikes franchisees should inquire directly with the franchisor about the policies and procedures for handling past-due debts and how payments are applied in such situations. Understanding these policies is essential for effective financial management and maintaining a positive relationship with Jersey Mikes.