When assigning a Jersey Mikes franchise agreement, who are the parties involved that must provide their signatures and dates?
Jersey_Mikes Franchise · 2025 FDDAnswer from 2025 FDD Document
nchisor may then require in connection with new Development Agreements and Franchise Agreements;
- (c) The transferee provides Franchisor a waiver and release with respect to liability for any financial data, earnings claims, representations and other information Developer or its representatives provided the transferee;
- (d) Each Principal executes a Guaranty and Assumption of Obligations (Exhibit F-1).
- (e) The transferee and the transferee's Controlling Principal and/or designated manager satisfactorily complete Franchisor's Area Developer training program, if any;
- (f) The transferee and the transferee's Principals apply to Franchisor for acceptance as a Jersey Mike's developer, and furnishes to Franchisor the information and references that Franchisor requests to determine transferee's and its Principals' skills, qualifications and economic resources;
- (g) The transferee and the transferee's Principals demonstrate that it and the Principals have the skills, qualifications, ethics, moral values and economic resources necessary, in Franchisor's judgment, to develop JERSEY MIKE's restaurants, and to fulfill its obligations to Franchisor;
- (h) If the transferee and/or its Principals are an existing Jersey Mike's franchisee, the transferee and the transferee's Principals must be approved by Franchisor, in its sole and absolute discretion, for growth;
Source: Item 22 — CONTRACTS (FDD page 77)
What This Means (2025 FDD)
According to the 2025 Jersey Mikes Franchise Disclosure Document, when transferring a franchise agreement, several parties may be required to provide signatures. The transferee and the transferee's Principals must apply to Jersey Mikes for acceptance as a developer, providing requested information and references. The transferee and their Controlling Principal or designated manager must satisfactorily complete Jersey Mike's Area Developer training program, if any. Each Principal must execute a Guaranty and Assumption of Obligations.
Furthermore, the developer, its affiliates, and their respective Principals and Guarantors must provide Jersey Mikes with an unconditional, general release of all claims against Jersey Mikes, its affiliates, and their respective officers, directors, shareholders, partners, and employees. The specific documents requiring signatures and dates would include the Assignment of Franchise Agreement, Guaranty and Assumption of Obligations, and potentially other collateral agreements that Jersey Mikes may require.
It is important to note that the transfer is contingent upon Jersey Mikes' approval, and the transferee must meet certain qualifications, including demonstrating the necessary skills, qualifications, ethics, moral values, and economic resources. Additionally, if the transferee or its Principals are existing Jersey Mike's franchisees, they must be approved for growth by Jersey Mikes. The developer must also comply with the right of first refusal provisions outlined in the agreement.