In the context of an Area Development Agreement assignment, who is required to execute the assignment document for Jersey Mikes?
Jersey_Mikes Franchise · 2025 FDDAnswer from 2025 FDD Document
This Assignment of Area Development Agreement is made by and between A Sub Above, LLC, a Delaware limited liability company having its principal place of business at 2251 Landmark Place, Manasquan, New Jersey 08736, (the "Franchisor"), [ORIGINAL DEVELOPER] (the "Assignor"), [NEW ENTITY] (the "Assignee"), and [GUARANTORS] (the "Guarantors"). This Assignment of Area Development Agreement shall take effect upon its execution and dating by Franchisor (the "Effective Date").
Source: Item 22 — CONTRACTS (FDD page 77)
What This Means (2025 FDD)
According to Jersey Mike's 2025 Franchise Disclosure Document, in the event of an Area Development Agreement assignment, the assignment document must be executed by the Franchisor (A Sub Above, LLC), the Original Developer (Assignor), the New Entity (Assignee), and any Guarantors. The assignment becomes effective once it is executed and dated by Jersey Mike's Franchisor.
This requirement ensures that all parties involved in the transfer of the Area Development Agreement are legally bound by the terms of the assignment. By having all parties execute the document, Jersey Mike's aims to maintain control over who is developing their franchises and ensure the new developer is aware of and agrees to the existing obligations.
This is a fairly standard practice in franchising, as franchisors typically want to carefully vet and approve any new entities taking over development rights to protect their brand and system. The execution of the assignment document formalizes the transfer and provides legal recourse should any party fail to meet their obligations under the agreement.