In the context of a Jersey Mikes franchise agreement assignment, who is required to execute the assignment document?
Jersey_Mikes Franchise · 2025 FDDAnswer from 2025 FDD Document
chisor and its Affiliates, including payment of all monetary obligations due Franchisor and its Affiliates;
- (b) The transferee executes Franchisor's then current form of Development Agreement and Franchise Agreement (which shall limit the term of the transferee's Development Agreement and
Franchise Agreement to the unexpired term of this Agreement and which shall supersede the terms of this Agreement), Guaranty and Assumption of Obligations, and other collateral agreements Franchisor may then require in connection with new Development Agreements and Franchise Agreements;
- (c) The transferee provides Franchisor a waiver and release with respect to liability for any financial data, earnings claims, representations and other information Developer or its representatives provided the transferee;
- (d) Each Principal executes a Guaranty and Assumption of Obligations (Exhibit F-1).
- (e) The transferee and the transferee's Controlling Principal and/or designated manager satisfactorily complete Franchisor's Area Developer training program, if any;
- (f) The transferee and the transferee's Principals apply to Franchisor for acceptance as a Jersey Mike's developer, and furnishes to Franchisor the information and references that Franchisor requests to determine transferee's and its Principals' skills, qualifications and economic resources;
- (g) The transferee and the transferee's Principals demonstrate that it and the Principals have the skills, qualifications, ethics, moral values and economic resources necessary, in Franchisor's judgment, to develop JERSEY MIKE's restaurants, and to fulfill its obligations to Franchisor;
- (h) If the transferee and/or its Principals are an existing Jersey Mike's franchisee, the transferee and the transferee's Principals must be approved by Franchisor, in its sole and absolute discretion, for growth;
- (i) Franchisor receives 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;
- (j) Developer and its Affiliates and their respective Principa
Source: Item 22 — CONTRACTS (FDD page 77)
What This Means (2025 FDD)
According to the 2025 Jersey Mikes Franchise Disclosure Document, in the event of a Development Agreement transfer, each Principal is required to execute a Guaranty and Assumption of Obligations. Additionally, the developer, their affiliates, their respective Principals, and Guarantors must provide an unconditional, general release of all claims against Jersey Mikes, its affiliates, and their respective officers, directors, shareholders, partners, and employees.
Furthermore, the transferee and the transferee's Principals must apply to Jersey Mikes for acceptance as a developer, providing all requested information and references to determine their skills, qualifications, and economic resources. They must also demonstrate that they possess the necessary skills, qualifications, ethics, moral values, and economic resources to develop Jersey Mike's restaurants and fulfill their obligations to the company.
If the transferee or its Principals are existing Jersey Mike's franchisees, they must be approved for growth by Jersey Mikes in its sole and absolute discretion. These requirements ensure that any transfer of the Development Agreement meets Jersey Mike's standards for franchisee qualifications and protects the brand's interests.