What constitutes an 'Affiliate' of Jersey Mikes, according to the franchise agreement?
Jersey_Mikes Franchise · 2025 FDDAnswer from 2025 FDD Document
ll conform to the specifications and quality standards established by Franchisor from time to time. Franchisee may purchase such products which meet Franchisor's specifications and quality standards from Franchisor and its Affiliates if they offer such products, or fr om suppliers approved by Franchisor as meeting its criteria for JERSEY MIKE'S suppliers. If Franchisee proposes to offer for sale at the Franchised Restaurant any brand of product, or to use in the operation of the Franchised Restaurant any brand of food ingredient or other material or supply, which is not then approved by Franchisor as meeting its minimum specifications and quality standards, or to purchase any product from a supplier that is not then designated by Franchisor as an approved supplier, Franchisee shall first notify Franchisor and shall upon request by Franchisor submit samples and such other information as Franchisor requires for examina
Source: Item 22 — CONTRACTS (FDD page 77)
What This Means (2025 FDD)
According to Jersey Mike's 2025 Franchise Disclosure Document, the term 'affiliate' is used throughout Item 22, which covers various contracts and agreements. However, the FDD does not explicitly define what constitutes an 'Affiliate' of Jersey Mike's. The term appears in contexts such as the transfer of agreements, compliance with obligations, and the approval of manufacturers and suppliers.
For example, a developer transferring rights under the Development Agreement must ensure that they and their Affiliates are in full compliance with all obligations to Jersey Mike's and its Affiliates. Franchisees may also purchase products from Jersey Mike's and its Affiliates if they offer such products. Additionally, when transferring a Development Agreement, the developer and its Affiliates must provide a general release of all claims against Jersey Mike's, its Affiliates, and their respective personnel.
Because the definition is not provided, prospective franchisees should seek clarification from Jersey Mike's regarding the precise meaning of 'Affiliate.' Understanding this term is crucial, as it has implications for various aspects of the franchise agreement, including compliance, approved suppliers, and potential liabilities during a transfer.