What constitutes a 'Crisis Management Event' that could trigger a required closure or suspension of operations at a Jersey Mikes franchise?
Jersey_Mikes Franchise · 2025 FDDAnswer from 2025 FDD Document
operations or expenses that Franchisee incurs in taking remedial actions under this Section 13.18.
- d. "Crisis Management Event" means any event that occurs at or about the Franchised Restaurant that has or may cause harm or injury to customers or employees, such as food contamination, food spoilage/poisoning, food tampering/sabotage, contagious diseases, natural disasters, terrorist acts, shootings, or any other circumstance which may damage the System, the Marks, or the image or reputation of Franchisor or its affiliates.
14. FRANCHISOR'S OPERATIONS ASSISTANCE
- 14.1 Unless prohibited by applicable law, Franchisor may periodically set a maximum or minimum price that Franchisee may charge for products and services offered by Franchised Restaurants. If Franchisor imposes such a maximum or minimum price for any product or service, Franchisee may charge any price for the product or service up to and including Franchisor's designated maximum price or down to and including Franchisor's designated minimum price. The designated maximum and minimum prices for the same product or service may, at Franchisor's option, be the same.
Source: Item 22 — CONTRACTS (FDD page 77)
What This Means (2025 FDD)
According to Jersey Mike's 2025 Franchise Disclosure Document, a 'Crisis Management Event' is defined as any occurrence at or near a franchised restaurant that could potentially harm customers or employees. These events can include food contamination, food spoilage or poisoning, food tampering or sabotage, contagious diseases, natural disasters, terrorist acts, shootings, or any other circumstance that could damage the Jersey Mikes system, brand, or reputation.
If a Crisis Management Event occurs at a Jersey Mikes location, whether operated by the franchisee or not, Jersey Mike's has the right to require the franchisee to close the restaurant, suspend operations (partially or entirely), and/or take remedial actions deemed necessary by Jersey Mike's to reopen the restaurant. Jersey Mike's maintains sole discretion in exercising these rights and will continue to do so until they determine the Crisis Management Event is resolved.
It's important to note that Jersey Mike's assumes no liability for any losses the franchisee incurs due to closure or suspension of operations, or for expenses related to remedial actions taken. The franchisee is obligated to immediately inform their Area Director and Jersey Mike's Operations Department upon becoming aware of a Crisis Management Event and must fully cooperate with Jersey Mike's or its designee in managing the situation. Franchisees may also be required to reimburse Jersey Mike's for costs incurred, such as those for attorneys, experts, or public relations firms, during the management of the crisis.