What is the amount of the Grand Opening Advertising Fee for a Jersey Mikes franchise?
Jersey_Mikes Franchise · 2025 FDDAnswer from 2025 FDD Document
ts products or services, except in accordance with Section 14.1 below.
- Franchisee shall not advertise or use in advertising or any other form of promotion, the trademarks of Franchisor without appropriate ® or TM or copyright registration marks © where applicable.
- 10.3 Franchisee shall pay Franchisor Twelve Thousand Five Hundred Dollars ($12,500.00) for Franchisor's use in conducting a grand opening advertising program to promote the opening of the Franchised Restaurant; provided, however, that in the event of a transfer as described in Section 19.2 of this Agreement, or in the event of a Franchisor-approved relocation as described in Section 3.1 of this Agreement, Franchisee shall pay Franchisor Five Thousand Dollars ($5,000.00) for Franchisor's use in conducting such program. The payment is due in full on the date Franchisee signs a lease for the Premises, or a contract to purchase the Premises, and Franchisee shall pay via its automatic clearing house (ACH) account as described in Section 11.2.
- 10.4 Franchisee shall pay one percent (1.0%) of Franchisee's Gross Receipts, as definedin Section 11.1, to the Corporate Advertising and Development Fund, in addition to any payments and expenditures required by Sections 10.5 and 10.6. Franchisee's required payments to the Corporate Advertising and Development Fund shall be made at the same time and in the same manner as, and in addition to, the Continuing Royalty Fee provided in Section 11. Up on ninety (90) days' written notice, Franchisor may change the amount of Franchisee's payment to the Corporate Advertising and Development Fund, provided, however, that in no event shall Franchisee's payments to the Corporate Advertising and Development Fund, National Media Fund, and Cooperative Advertising Fund exceed six percent (6%) of Franchisee's Gross Receipts. Franchisor may reallocate funds in the Corporate Advertising and Development
Source: Item 22 — CONTRACTS (FDD page 77)
What This Means (2025 FDD)
According to Jersey Mike's 2025 Franchise Disclosure Document, a new franchisee must pay a Grand Opening Advertising Fee. This fee is $12,500, which Jersey Mike's will use to conduct an advertising program promoting the opening of the franchised restaurant. However, if there is a transfer of ownership or a franchisor-approved relocation, the fee is reduced to $5,000 for a similar advertising program.
The Grand Opening Advertising Fee is due in full when the franchisee signs a lease or contract to purchase the premises. The franchisee is required to pay this fee via an automatic clearing house (ACH) account, as described in Section 11.2 of the franchise agreement.
This fee is separate from other advertising expenses. Franchisees must also pay 1% of their gross receipts to the Corporate Advertising and Development Fund, in addition to any payments and expenditures required by Sections 10.5 and 10.6 of the franchise agreement. Jersey Mike's retains the right to modify the amount contributed to the Corporate Advertising and Development Fund with 90 days' notice; however, the total advertising contributions cannot exceed 6% of gross receipts.