What evidence must a Jersey Mikes franchisee provide to demonstrate their right to remain in possession of the Restaurant Premises for the duration of the renewal term?
Jersey_Mikes Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee maintains possession of the Restaurant Premises and by the Expiration Date has brought the Franchised Restaurant into full compliance with the specifications and standards then applica ble for ne w or re newing JERSEY MIKE'S Restaurants, including, without limitation, its current image and decorative standards, and presents evidence satisfactory to Franchisor that it has the right to remain in possession of the Franchised Restaurant Premises ("Premises") for the duration of any renewal term; or, in the event Franchisee is unable to maintain possession of the Premises, or in the judgment of Franchisor the Franchised Restaurant should be relocated, Franchisee secures substitute Premises approved by Franchisor and has furnished, stocked and equipped such Premises to bring the Franchised Restaurant at its substitute Premises into full compliance with the then-current System Standards (as defined in Section 7.1) by the expiration date of this Agreement;
Source: Item 22 — CONTRACTS (FDD page 77)
What This Means (2025 FDD)
According to Jersey Mikes's 2025 Franchise Disclosure Document, a franchisee seeking to renew their franchise agreement must provide evidence satisfactory to Jersey Mikes that they have the right to remain in possession of the restaurant premises for the duration of the renewal term. This is a condition for renewal, ensuring the franchisee has secure tenure at the location.
In the event that the franchisee is unable to maintain possession of the premises, the franchisee has the option to secure a substitute premises approved by Jersey Mikes. The franchisee must furnish, stock, and equip the substitute premises to meet the then-current System Standards by the expiration date of the original agreement. This provides an alternative path to renewal if the original location is no longer viable.
This requirement protects Jersey Mikes by ensuring that renewed franchises continue to operate from suitable locations, maintaining brand standards and operational continuity. For a prospective franchisee, it highlights the importance of securing a lease with renewal options or the ability to assign the lease to Jersey Mikes, or having a contingency plan for relocation should the lease not be renewed.