In connection with Jersey Mikes, what happens to all rights granted to the franchisee upon termination or expiration?
Jersey_Mikes Franchise · 2025 FDDAnswer from 2025 FDD Document
Upon termination or expiration, this Agreement and all rights granted hereunder to Franchisee shall forthwith terminate, and:
- 18.1 Franchisee shall immediately cease to operate the Franchised Restaurant under this Agreement (unless Franchisor directs Franchisee otherwise in connection with Franchisor's exercise of Franchisor's option to purchase pursuant to Section 18.11), and shall not thereafter, directly or indirectly, represent to the public or hold itself out as a present or former franchisee of Franchisor.
- 18.2 Upon demand by Franchisor, Franchisee shall assign to Franchisor Franchisee's interest in any lease then in effect for the Premises, or if Franchisee is the owner of the Premises, negotiate in good faith with Franchisor for a lease which permits Franchisor or its designee to occupy the premises, and Franchisee shall furnish Fr anchisor with evidence satisfactory to Franchisor of c ompliance with this obligation within thirty (30) days after termination or expiration of this Agreement.
- 18.3 Franchisee shall immediately and perm anently cease to use, b y advertising or in any manner whatsoever, any Confidential Information, the Marks, any Contact Identifiers (as defined in Section 18.6) or any O nline Presence.
In par ticular, Franchisee shall cease to use, withou t limitation, all signs, advertising materials, stationery, forms, and other articles which display the Marks associated with the System.
Franchisor shall have the right to deactivate Franchisee's POS System.
- 18.4 Franchisee shall take such action as may be necessary to assign to Franchisor or Franchisor's designee any assumed name rights or equivalent registration filed with state, city, or county authorities which c ontains the name "JERSEY MIKE'S" or any other service mark or tra demark of Franchisor of compliance with this obligation within thirty (30) days after termination or expiration of this Agreement.
Source: Item 22 — CONTRACTS (FDD page 77)
What This Means (2025 FDD)
According to Jersey Mikes's 2025 Franchise Disclosure Document, upon termination or expiration of the franchise agreement, all rights granted to the franchisee are immediately terminated. The franchisee must immediately cease operating the Jersey Mike's restaurant, unless Jersey Mike's directs otherwise in connection with exercising its option to purchase the restaurant. The franchisee is prohibited from representing themselves as a current or former Jersey Mike's franchisee.
Jersey Mike's can demand the franchisee to assign their interest in the restaurant lease to Jersey Mike's. If the franchisee owns the premises, they must negotiate in good faith for a lease that allows Jersey Mike's or its designee to occupy the property. The franchisee must provide evidence of compliance with this obligation within 30 days of termination or expiration.
The franchisee must immediately and permanently stop using any confidential information, the Jersey Mike's Marks, contact identifiers, or any online presence associated with the brand. This includes ceasing the use of all signs, advertising materials, stationery, forms, and other articles displaying the Marks. Jersey Mike's has the right to deactivate the franchisee's POS system. The franchisee must also take necessary actions to assign any assumed name rights or equivalent registrations containing the name "JERSEY MIKE'S" or any other trademark of Jersey Mike's to the franchisor or its designee within 30 days of termination or expiration.