What fees can Jersey Mikes charge a franchisee in connection with the relocation of a Franchised Restaurant?
Jersey_Mikes Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee shall not relocate its Restaurant without the prior written approval of Franchisor.
Source: Item 22 — CONTRACTS (FDD page 77)
What This Means (2025 FDD)
According to Jersey Mikes's 2025 Franchise Disclosure Document, a franchisee cannot relocate their restaurant without prior written approval from Jersey Mikes. However, the document does not specify any fees associated with the relocation of a franchised restaurant.
While the FDD does not explicitly state relocation fees, it does mention other fees that a franchisee might encounter. For instance, if a franchisee chooses to hire an architect or contractor not approved by Jersey Mikes, they may have to pay a fee of $5,000 to cover Jersey Mikes's costs for oversight. Additionally, there is a transfer fee of $5,000 for services related to approving the transfer of a Development Agreement and another $5,000 for each Franchise Agreement transferred to the transferee.
Since the FDD does not provide information on relocation fees, it is important for a prospective franchisee to ask Jersey Mikes directly about any potential fees or costs associated with relocating a franchise. This inquiry should cover all aspects of the relocation process to ensure full transparency and avoid unexpected expenses.