What constitutes 'substantial compliance' with the franchise agreement for Jersey Mikes franchise renewal?
Jersey_Mikes Franchise · 2025 FDDAnswer from 2025 FDD Document
2.2 Franchisee shall have the option to renew this franchise at the expiration of the initial term of the franchise for one (1) additional term of ten (10) years, provided that all of the following conditions have been fulfilled:
a.
Franchisee has, during the entire term of this Agreement, substantially complied with all its provisions;
Source: Item 22 — CONTRACTS (FDD page 77)
What This Means (2025 FDD)
According to Jersey Mikes's 2025 Franchise Disclosure Document, substantial compliance with the franchise agreement is a key condition for renewal. Specifically, to renew a Jersey Mikes franchise for an additional ten-year term, a franchisee must have substantially complied with all provisions of the existing franchise agreement throughout its entire term. This is evaluated alongside other conditions.
Beyond general compliance, Jersey Mikes requires franchisees to meet several other conditions for renewal. These include bringing the restaurant into full compliance with the current specifications and standards for new or renewing Jersey Mikes restaurants, which encompasses image and decorative standards. Franchisees must also provide satisfactory evidence that they have the right to remain in possession of the premises for the renewal term. If maintaining possession is not possible, securing a substitute location approved by Jersey Mikes and ensuring it meets current system standards is necessary.
Furthermore, franchisees must provide timely written notice of their intent to renew, satisfy all monetary obligations to Jersey Mikes and its affiliates, and sign the then-current form of the franchise agreement, which may include different royalty fees and advertising contributions. Compliance with current qualification and training requirements is also mandatory. Finally, franchisees and their guarantors must sign a general release of claims against Jersey Mikes and its affiliates. These stipulations ensure that franchisees seeking renewal are fully aligned with Jersey Mikes's current standards and practices.