What is the consideration mentioned in the Jersey Mikes Assignment of Area Development Agreement?
Jersey_Mikes Franchise · 2025 FDDAnswer from 2025 FDD Document
WHEREAS, the Assignor desires to assign its rights as Developer under the Area Development Agreement to the Assignee; and
NOW THEREFORE, for good and valuable consideration, the receipt and sufficiency of which is acknowledged, the Franchisor, Assignor, Assignee, and Guarantors hereby agree as follows:
Source: Item 22 — CONTRACTS (FDD page 77)
What This Means (2025 FDD)
According to Jersey Mike's 2025 Franchise Disclosure Document, the Assignment of Area Development Agreement involves "good and valuable consideration." This acknowledges that something of value is exchanged between the Franchisor, Assignor, Assignee, and Guarantors. The specifics of this consideration are not detailed beyond this general statement within the agreement itself.
However, the FDD does specify a transfer fee of Five Thousand Dollars ($5,000.00) for services related to approving the Transfer of the Development Agreement, and Five Thousand Dollars ($5,000.00) for each Franchise Agreement transferred to the transferee. While this fee is associated with the transfer of the agreement, it is listed as a condition for the transfer rather than the consideration within the assignment agreement itself.
Prospective franchisees should seek clarification from Jersey Mikes regarding the exact nature of the "good and valuable consideration" mentioned in the Assignment of Area Development Agreement to fully understand their obligations and the franchisor's expectations during the assignment process.