What is the 'Effective Date' referring to in the Jersey Mikes Assignment of Area Development Agreement?
Jersey_Mikes Franchise · 2025 FDDAnswer from 2025 FDD Document
This Assignment of Area Development Agreement is made by and between A Sub Above, LLC, a Delaware limited liability company having its principal place of business at 2251 Landmark Place, Manasquan, New Jersey 08736, (the "Franchisor"), [ORIGINAL DEVELOPER] (the "Assignor"), [NEW ENTITY], (the "Assignee"), and [GUARANTORS] (the "Guarantors"). This Assignment of Area Development Agreement shall take effect upon its execution and dating by Franchisor (the "Effective Date").
Source: Item 22 — CONTRACTS (FDD page 77)
What This Means (2025 FDD)
According to Jersey Mikes's 2025 Franchise Disclosure Document, the Effective Date in the context of the Assignment of Area Development Agreement refers to the date upon which the assignment becomes active. Specifically, the agreement takes effect once it has been executed and dated by A Sub Above, LLC, the franchisor. This date is crucial because it marks the point from which the new entity, or Assignee, assumes all rights and responsibilities under the original Area Development Agreement.
Furthermore, the Effective Date serves as a cutoff for any claims, debts, or liabilities related to the Area Development Agreement. The Developer, Guarantors, Assignor(s), and Assignee(s) release Jersey Mikes and its affiliates from any claims arising prior to and including the Effective Date. This includes claims related to the Area Development Agreement itself, its execution, and the operation of the franchised business. This clause protects Jersey Mikes from potential legal issues stemming from the previous developer's actions or inactions.
In practical terms, the Effective Date is the starting point for the Assignee's obligations and benefits under the Area Development Agreement. It is the date from which the Assignee is expected to comply with all terms and conditions of the agreement and to begin developing Jersey Mike's restaurants within the designated territory. It is also the date that all parties acknowledge by signing the Assignment of Area Development Agreement.