What documentation is required by Jersey Mikes when a Developer who is an individual or partnership assigns their agreement to a corporation or LLC?

According to Jersey Mike's 2025 Franchise Disclosure Document, if a Developer is an individual or partnership and wishes to assign their Development Agreement to a corporation or LLC where they will own 100% of the ownership interest, Jersey Mike's will consent to the assignment, waive the transfer fee, and waive its right of first refusal, provided they receive specific documentation. For a partnership, share ownership in the new corporation or LLC must be apportioned substantially the same as the original partnership interests.

The required documentation includes a certified list of the corporation's Principals, which designates the amount and percentage of stock or units of beneficial ownership each Principal owns. Additionally, each Principal must sign a Personal Guaranty and Assumption of Obligations. The corporation or LLC must also provide an express assumption of the Developer's obligations under the Development Agreement.

This policy streamlines the process for Developers who wish to incorporate their business, reducing potential costs and delays typically associated with transferring franchise agreements. By waiving the transfer fee and right of first refusal, Jersey Mike's facilitates internal restructuring while ensuring that the core obligations of the Development Agreement remain intact through the assumption by the new corporate entity and personal guarantees of the Principals.