What conditions must a Jersey Mikes franchisee meet to be eligible to renew their franchise agreement?
Jersey_Mikes Franchise · 2025 FDDAnswer from 2025 FDD Document
- a.
Franchisee has, during the entire term of this Agreement, substantially complied with all its provisions;
- b.
Franchisee maintains possession of the Restaurant Premises and by the Expiration Date has brought the Franchised Restaurant into full compliance with the specifications and standards then applica ble for ne w or re newing JERSEY MIKE'S Restaurants, including, without limitation, its current image and decorative standards, and presents evidence satisfactory to Franchisor that it has the right to remain in possession of the Franchised Restaurant Premises ("Premises") for the duration of any renewal term; or, in the event Franchisee is unable to maintain possession of the Premises, or in the judgment of Franchisor the Franchised Restaurant should be relocated, Franchisee secures substitute Premises approved by Franchisor and has furnished, stocked and equipped such Premises to bring the Franchised Restaurant at its substitute Premises into full compliance with the then-current System Standards (as defined in Section 7.1) by the expiration date of this Agreement;
- c.
Franchisee has given notice of renewal to Franchisor as provided in Section 2.3;
- d.
Franchisee has satisfied all monetary obligations owed by Franchisee to Franchisor and its subsidiaries and Affiliates and has timely met these obligations throughout the term of this Agreement;
- e.
Franchisee has signed upon renewal Franchisor's then-current form of the franchise agreement (with appropriate modifications to reflect the fact that the franchise agreement relates to the grant of a renewal franchise), and all related agreements customarily signed by new franchisees of Franchisor, which such franchise agreement shall supersede this Agreement and may differ in all respects from this Agreement, including, without limitation, a different percentage continuing royalty fee and advertising contribution; provided, however, Franchisee shall not be required to pay the then-current initial franchise fee or its equivalent;
- f.
Franchisee has complied with Franchisor's then-current qualification and training requirements; and
- g.
Franchisee and Franchisee's guarantors have signed a general release, in a f orm prescribed by Franchisor, of any and all claims against Franchisor and its subsidiaries and Affiliates, and their respective officers, directors, agents, shareholders and employees.
Source: Item 22 — CONTRACTS (FDD page 77)
What This Means (2025 FDD)
According to Jersey Mikes's 2025 Franchise Disclosure Document, a franchisee must meet several conditions to be eligible for renewal. The franchisee must have substantially complied with all provisions of the franchise agreement during its entire term. This indicates that adherence to Jersey Mikes's operational standards, brand guidelines, and contractual obligations is critical for renewal eligibility.
Another key condition is that the franchisee must maintain possession of the restaurant premises and ensure it meets the current specifications and standards for new or renewing Jersey Mikes restaurants by the expiration date. This includes compliance with image and decorative standards. If maintaining possession of the current premises is not feasible, the franchisee must secure an alternative location approved by Jersey Mikes and bring it into full compliance with the System Standards.
Furthermore, the franchisee must provide timely notice of their intent to renew, satisfy all outstanding monetary obligations to Jersey Mikes and its affiliates, and comply with the franchisor's qualification and training requirements. They must also sign the then-current form of the franchise agreement and related agreements, which may include different royalty fees and advertising contributions, although the initial franchise fee is waived. Finally, the franchisee and their guarantors must sign a general release of all claims against Jersey Mikes and its affiliates.
These conditions collectively ensure that franchisees seeking renewal are in good standing, committed to upholding Jersey Mikes's brand standards, and willing to adapt to any updated terms and conditions in the renewal agreement. Meeting these requirements is essential for a Jersey Mikes franchisee to secure an additional ten-year term.