Does this amendment to the Area Development Agreement affect all Jersey Mikes franchised restaurants developed under the Development Agreement?
Jersey_Mikes Franchise · 2025 FDDAnswer from 2025 FDD Document
ong other things, bringing an appropriate legal action or by raising the claim in a legal action or arbitration that you have initiated.
The parties have executed this Amendment as of the Effective Date below.
| Peter C | ancro, Chief Executive Officer |
|---|---|
| Date*: | |
| (*Effec | tive Date of this Amendment) |
| DEVELOPE | R: |
| By: | |
| Name/ | Γitle |
| Date: |
FRANCHISOR: A SUB ABOVE, LLC
AMENDMENT TO A SUB ABOVE, LLC AREA DEVELOPMENT AGREEMENT FOR THE STATE OF NORTH DAKOTA
| THIS AMENDMENT (this "Amendment") is made | and entered into by and betwe en A | Sub |
|---|---|---|
| Above, LLC ("Franchisor") and | _ ("Developer" or "You"). Franchison | r and |
| Developer are parties that c ertain Area Development Agreeme | ent dated, 20 | (the |
| "Development Agreement"). This Amendment is annexed | to and for ms part of the De velopi | ment |
| Agreement. This Amendment is being signed because (a) Yo | u are a resident of North Dakota and | 1 the |
| Franchised Restaurants that You will develop under the Dev | velopment Agreement will be locate | d or |
| operated in North Dakota, and/or (b) any of the offering or sa | ales activity relating to the Develop | ment |
| Agreement occurred in North Dakota. |
NORTH DAKOTA LAW MODIFICATIONS
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- The North Dakota Securities Commissioner requires that certain provisions contained in franchise documents be amended to be consistent with North Dakota law, including the North Dakota Franchise Investment Law, North Dakota Century Code Annotated Chapter 51-19, Sections 51-19-01 through 51-19-17 (1993). To the extent that this Amendment contains provisions that are inconsistent with the Development Agreement, the terms of this Amendment shall govern such inconsistency.
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- The following is added as Section 17.9 to the Development Agreement:
"NOTWITHSTANDING ANYTHING TO THE CONTRAR Y IN THIS AGREEMENT, TO THE EXTENT REQUIRED UNDER THE NORTH DAKOTA FRANCHISE INVESTMENT LAW (UNLESS PRE-EMPTED BY THE FEDERAL LAW), ANY ARBITRATION SHALL BE HELD AT A SITE TO WHICH THE PARTIES MUTUALLY AGREE."
- The following is added as Section 17.10 to the Development Agreement:
"NOTWITHSTANDING ANYTHING TO THE CONTRAR Y IN THIS AGREEMENT, TO THE EXTENT REQUIRED UNDER THE NORTH DAKOTA FRANCHISE INVESTMENT LAW, AND SUBJ ECT TO THE ARBITRATION OBLIGATIONS, DEVELOPER MAY BRING AN ACTION IN NORTH DAKOTA FOR CLAIMS ARISING UNDER THE NORTH DAKOTA FRANCHISE INVESTMENT LAW."
4.
Source: Item 23 — RECEIPTS (FDD pages 77–421)
What This Means (2025 FDD)
According to the 2025 Jersey Mikes Franchise Disclosure Document, the amendment to the Area Development Agreement does not apply to all Jersey Mikes franchised restaurants developed under the Development Agreement. The document states that the amendment is specific to developers who are residents of or conduct business in particular states. For example, one amendment applies to developers in North Dakota, another to those in Washington, and yet another to developers in Illinois.
Specifically, the amendment is signed because either the developer is domiciled in a certain state, the franchised restaurants developed under the Development Agreement will be located or operated in that state, or any of the offering or sales activity relating to the Development Agreement occurred in that state. Therefore, the modifications outlined in each amendment are only applicable if one or more of these conditions are met for a particular state.
For a prospective Jersey Mikes franchisee, this means that the specific terms and conditions of their Area Development Agreement may be modified by a state-specific amendment depending on their residency, the location of their restaurants, and where the franchise offering or sales activity took place. It is important to carefully review any state-specific addenda to understand how they might alter the standard Development Agreement.