How are Continuing Royalty Fees and advertising contributions paid to Jersey Mike's?
Jersey_Mikes Franchise · 2025 FDDAnswer from 2025 FDD Document
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All Continuing Royalty Fees, advertising contributions, amounts due for purchases by you from Company and other amounts which you owe to Company will be paid through an automatic clearing house (ACH) as described in the Manual (as defined in Item 11). Before or at the same time you acquire an interest in the real property on which you will operate your Franchised Restaurant, you must establish an automatic clearing house (ACH) account and Company will have access to this account for the purpose of receiving payment for Continuing Royalty Fees, advertising contributions, amounts due for purchases by you from Company, the Grand Opening Advertising Fee described in Note 2, and any other amounts which you owe to Company. You must make deposits to the account sufficient to cover amounts owed to Company for withdrawal on a weekly basis for Continuing Royalty Fees, advertising contributions and other funds owed to Company for the preceding week. The frequency of such payments may be changed by Company at any time (for example, to semi-weekly or daily payments). Deposits for all other amounts owed to Company must be in accordance with the procedures in the Manual. Company may waive payment of fees in special circumstances.
2 Grand Opening Advertising. You must pay Company a nonrefundable $12,500 ($5,000 if you are purchasing an existing Restaurant or relocating your existing Restaurant with Company approval), all of which will be used to conduct a Grand Opening Advertising program for your Restaurant. The fee is due when you sign a lease for the Restaurant or upon Company approved transfer and must be paid via your automatic clearing house (ACH) a ccount as described above. Company will consult with you about the
program, which is described in Item 11, but Company retains full discretion over expenditures made and the content of the program.
Source: Item 6 — OTHER FEES (FDD pages 15–24)
What This Means (2025 FDD)
According to Jersey Mike's 2025 Franchise Disclosure Document, all Continuing Royalty Fees, advertising contributions, amounts due for purchases from Jersey Mike's, and other amounts owed to Jersey Mike's will be paid through an automatic clearing house (ACH) as described in the Manual. Before or at the same time a franchisee acquires an interest in the real property on which they will operate their Franchised Restaurant, they must establish an ACH account that Jersey Mike's will have access to. This account is used for receiving payment for Continuing Royalty Fees, advertising contributions, amounts due for purchases, the Grand Opening Advertising Fee, and any other amounts owed.
Franchisees must make deposits to the ACH account sufficient to cover amounts owed to Jersey Mike's for withdrawal on a weekly basis for Continuing Royalty Fees, advertising contributions, and other funds owed for the preceding week. The frequency of such payments may be changed by Jersey Mike's at any time, potentially to semi-weekly or daily payments. Deposits for all other amounts owed to Jersey Mike's must be in accordance with the procedures in the Manual. Jersey Mike's may waive payment of fees in special circumstances.
Specifically, franchisees must pay 1.0% of their Gross Receipts from their Franchised Restaurant to the Jersey Mike's Corporate Advertising and Development Fund. Franchisees must also pay 4.0% of the Gross Receipts from their Franchised Restaurant to the National Media Fund. These payments will be made at the same time and in the same manner as the Continuing Royalty Fees. While franchisees are not currently required to contribute to the Cooperative Advertising Fund, Jersey Mike's may require them to do so in the future, with these contributions also being made at the same time and in the same manner as the Continuing Royalty Fees.