What is the dependency between signing a lease and the grand opening advertising fee for a Jersey Mikes franchise?

According to Jersey Mikes's 2025 Franchise Disclosure Document, a franchisee must pay a grand opening advertising fee when signing a lease or purchase agreement for the premises. Specifically, the franchisee is required to pay Jersey Mikes $12,500 for the franchisor to conduct a grand opening advertising program to promote the opening of the franchised restaurant. This payment is due in full on the date the franchisee signs a lease for the premises or a contract to purchase the premises. The franchisee must pay via its automatic clearing house (ACH) account.

However, the grand opening advertising fee is reduced to $5,000 in the event of a transfer as described in Section 19.2 of the Franchise Agreement, or in the event of a franchisor-approved relocation as described in Section 3.1 of the Franchise Agreement. This reduced fee also covers Jersey Mike's conducting a grand opening advertising program.

This means that before a Jersey Mikes franchisee can begin operations, they must budget for this upfront advertising fee in addition to other startup costs. The fee is non-refundable and is intended to support the launch of the new location. Franchisees should be aware of the timing of this payment, as it is linked to the lease or purchase agreement, and plan their finances accordingly.