In the context of the Promissory Note for Jersey Mikes, what agreement is defined as the 'Franchise Agreement'?
Jersey_Mikes Franchise · 2025 FDDAnswer from 2025 FDD Document
| $[] | Date: [] |
|---|---|
| 1. | DEFINED TERMS. As used in this Promissory Note (this "Note"), the following terms shall have the following meanings: |
| a. | Maker: [] |
| b. | Holder: Jersey Mike's Franchise Systems, LLC |
| c. | Approved Total Advance: $[] |
| d. | Franchise Agreement: That certain Franchise Agreement dated [] between Maker and Holder's affiliate, A Sub Above, LL C ("Franchisor"), governing Make r's ownership and operation of the Maker's Jersey Mike's restaurant (the "Restaurant"). |
| e. | Restaurant: Maker's Jersey Mike's Restaurant located at [] |
Source: Item 22 — CONTRACTS (FDD page 77)
What This Means (2025 FDD)
According to Jersey Mikes's 2025 Franchise Disclosure Document, the term 'Franchise Agreement' within the Promissory Note refers to a specific agreement between the Maker (franchisee) and A Sub Above, LLC (Franchisor), which is an affiliate of the Holder (Jersey Mike's Franchise Systems, LLC). This agreement, dated as specified in the note, governs the franchisee's ownership and operation of their Jersey Mike's restaurant. The restaurant's location is also specified in the Promissory Note.
This definition is important because the Promissory Note outlines the financial obligations of the franchisee to Jersey Mike's, and it is directly linked to the Franchise Agreement that grants the franchisee the right to operate the restaurant. Any default on the Promissory Note could potentially impact the franchisee's rights under the Franchise Agreement, and vice versa. The Promissory Note is attached to the Franchise Agreement as an exhibit.
Prospective franchisees should carefully review both the Franchise Agreement and the Promissory Note to understand their rights and obligations. They should pay close attention to the date of the Franchise Agreement referenced in the Promissory Note to ensure it matches the actual agreement they are signing. Understanding the interplay between these two documents is crucial for the financial health and operational success of the franchise.