Does the Jersey Mikes Development Agreement require the Developer to conduct an independent investigation of the business?
Jersey_Mikes Franchise · 2025 FDDAnswer from 2025 FDD Document
- 23.6 Developer has conducted an independent investigation of the business contemplated by this Agreement and recognizes that, like any other business, an investment in a JERSEY MIKE'S Development Agreement involves business risks and that the success of the venture is primarily dependent upon the business abilities and efforts of Developer.
Source: Item 22 — CONTRACTS (FDD page 77)
What This Means (2025 FDD)
According to Jersey Mikes's 2025 Franchise Disclosure Document, the Development Agreement states that the developer acknowledges they have conducted an independent investigation of the business. The agreement specifies that investing in a Jersey Mike's Development Agreement, like any other business, involves risks. The success of the venture is primarily dependent on the developer's business abilities and efforts.
This acknowledgement is a standard clause in franchise agreements. It confirms that the developer has not solely relied on the franchisor's representations but has also taken the initiative to assess the opportunity independently. This typically involves reviewing the FDD, conducting market research, and seeking professional advice.
By signing the Development Agreement, the developer confirms they understand the risks involved and that their own capabilities will significantly impact the success of their Jersey Mikes business. This clause aims to protect Jersey Mikes from future claims that the developer was misled or uninformed about the business risks.