What fees is a Jersey Mikes franchisee responsible for regarding the computer-based POS system, including software licensing, support, and network fees?
Jersey_Mikes Franchise · 2025 FDDAnswer from 2025 FDD Document
greements comply with and are enforceable under applicable laws.
9. MODIFICATION OF THE SYSTEM
Franchisor reserves the right to change or modify the System in its sole and absolute discretion by adopting and using new or modified System Standards, trade names, trademarks, service marks, copyrighted materials, or specifications or standards for menu items, products, services, building design, equipment or new techniques and Franchisee shall accept, adopt and make any such mandatory changes at the Restaurant, as if they were part of this Agreement at the time of its execution. Franchisee will make such expenditures as such changes or modifications in the System as Franchisor may reasonably require, utilizing a Franchisor-approved licensed contractor, provided the cost of capital improvements, new equipment and remodeling does not exceed One Hundred Fifty Thousand Dollars ($150,000.00) during the term of this Agreement, and the cost of updates and upgrades of Franchisee's point-of-sale system ("POS System") does not exceed Fifty Thousand Dollars ($50,000) du
Source: Item 22 — CONTRACTS (FDD page 77)
What This Means (2025 FDD)
According to Jersey Mike's 2025 Franchise Disclosure Document, franchisees are required to adopt changes or modifications to the Jersey Mike's system, which includes updates and upgrades to the point-of-sale (POS) system. The cost for these POS system updates and upgrades cannot exceed $50,000 during the entire term of the Franchise Agreement.
This means that over the life of the agreement, a franchisee must be prepared to invest up to $50,000 to keep their POS system current with Jersey Mike's standards. This investment covers not only the software itself but also any necessary hardware upgrades or changes to the system. The franchisee is responsible for these costs to maintain uniformity and compliance with the brand's technology standards.
It is important to note that this $50,000 limit applies specifically to POS system updates and upgrades. Other capital improvements, new equipment, and remodeling costs are subject to a separate limit of $150,000 during the term of the agreement. Therefore, franchisees need to budget carefully for both types of required changes to their Jersey Mike's location. Franchisees should clarify with Jersey Mike's what specific expenses are covered under the POS system upgrade limit to plan their finances accordingly.