What is the estimated life in years for buildings under the Jersey Mikes franchise agreement?
Jersey_Mikes Franchise · 2025 FDDAnswer from 2025 FDD Document
2. TERM AND RENEWAL
2.1 This Agreement shall be effective and binding from the date of its execution by Franchisor (the "Effective Date") and shall expire ten (10) years from the Effective Date, which is described as the Expiration Date on the Summary Pages.
2.2 Franchisee shall have the option to renew this franchise at the expiration of the initial term of the franchise for one (1) additional term of ten (10) years, provided that all of the following conditions have been fulfilled:
a.
Franchisee has, during the entire term of this Agreement, substantially complied with all its provisions;
- b.
Source: Item 22 — CONTRACTS (FDD page 77)
What This Means (2025 FDD)
Based on the 2025 Jersey Mikes Franchise Disclosure Document, there is no mention of the estimated life in years for buildings under the Jersey Mikes franchise agreement. The document does outline the initial term and renewal options for the franchise agreement itself, which is an initial term of ten years with one additional ten-year renewal option, provided certain conditions are met.
However, the FDD does not specify the expected lifespan of the physical building or premises where the Jersey Mikes restaurant is located. The agreement discusses the franchisee's responsibilities for construction, remodeling, and obtaining necessary permits, but it does not provide guidance on the building's depreciation or useful life for accounting or financial purposes.
A prospective franchisee should directly ask Jersey Mikes about any internal estimates or requirements related to the expected lifespan or condition of the restaurant building. This information would be helpful for long-term financial planning and assessing potential capital expenditures.