In the event of a conflict between the Franchise Agreement and the Amendment, which terms govern for a Jersey Mikes franchise?
Jersey_Mikes Franchise · 2025 FDDAnswer from 2025 FDD Document
16. SUPERIORITY OF FRANCHISE AGREEMENT
For each JERSEY MI KE'S individual Franchised Restaurant developed in the D esignated Territory, a separate Franchise Agreement shall be signed and any Initial Franchise Fee prescribed on the Development Schedule shall be paid to Franchisor. All Franchise Agreements signed in connection with JERSEY MIKE'S individual Franchised Restaurants within the Designated Territory are independent of this Agreement. The continued existence of any such Franchise Agreement shall not depend on the continuing existence of this Agreement. If any conflict shall arise in connection with this Agreement and any Franchise Agreement signed within the Designated Territory, the latter shall have precedence and superiority over the former.
Source: Item 22 — CONTRACTS (FDD page 77)
What This Means (2025 FDD)
According to Jersey Mikes's 2025 Franchise Disclosure Document, if there is a conflict between the Development Agreement and any Franchise Agreement signed within the Designated Territory, the Franchise Agreement takes precedence. This means that the terms outlined in the individual Franchise Agreement for each Jersey Mikes restaurant will supersede any conflicting terms in the broader Development Agreement.
This clause is particularly important for developers planning to open multiple Jersey Mikes locations within a designated area. While the Development Agreement sets the stage for the overall development plan, the specifics of each restaurant's operation, as detailed in its Franchise Agreement, will ultimately govern. This ensures that each franchise operates under its own set of rules and obligations, independent of the overarching development schedule.
For a prospective Jersey Mikes developer, this highlights the importance of carefully reviewing each Franchise Agreement in addition to the Development Agreement. While the Development Agreement provides the framework for expansion, the Franchise Agreement dictates the day-to-day operations and obligations of each individual restaurant. This distinction is crucial for understanding the full scope of responsibilities and rights associated with developing multiple Jersey Mikes franchises.