How does Jersey Mikes define a 'Controlling Principal' within a franchise?
Jersey_Mikes Franchise · 2025 FDDAnswer from 2025 FDD Document
Controlling Principal is a Principal who is designated by Franchisee and approved by Franchisor as the individual who is responsible for operating the Restaurant and causing Franchisee to comply with this Agreement.
Source: Item 22 — CONTRACTS (FDD page 77)
What This Means (2025 FDD)
According to Jersey Mike's 2025 Franchise Disclosure Document, a 'Controlling Principal' is defined as a principal who is designated by the franchisee and approved by Jersey Mike's. This individual holds the responsibility for overseeing the restaurant's operations and ensuring that the franchisee adheres to the terms outlined in the franchise agreement.
This definition highlights the importance of having a designated individual who is accountable for the restaurant's performance and compliance with Jersey Mike's standards. The franchisor's approval of the Controlling Principal suggests that Jersey Mike's wants to ensure that the person in charge has the necessary skills and qualifications to effectively manage the franchise.
For a prospective franchisee, this means they will need to identify and propose an individual to serve as the Controlling Principal. This person will undergo scrutiny by Jersey Mike's, and their suitability will be a factor in whether the franchise is approved. If the franchisee themselves intends to be the Controlling Principal, they should be prepared to demonstrate their ability to meet Jersey Mike's requirements. This also means that if the franchisee wishes to replace the controlling principal, they will need to seek approval from Jersey Mike's for the new candidate.