What form of agreement does the transferee have to execute when transferring a Jersey Mikes development agreement?
Jersey_Mikes Franchise · 2025 FDDAnswer from 2025 FDD Document
- (b) The transferee executes Franchisor's then current form of Development Agreement and Franchise Agreement (which shall limit the term of the transferee's Development Agreement and
Franchise Agreement to the unexpired term of this Agreement and which shall supersede the terms of this Agreement), Guaranty and Assumption of Obligations, and other collateral agreements Franchisor may then require in connection with new Development Agreements and Franchise Agreements;
- (c) The transferee provides Franchisor a waiver and release with respect to liability for any financial data, earnings claims, representations and other information Developer or its representatives provided the transferee;
Source: Item 22 — CONTRACTS (FDD page 77)
What This Means (2025 FDD)
According to Jersey Mikes' 2025 Franchise Disclosure Document, if a developer transfers their rights under the Development Agreement, the transferee must execute several agreements. These include Jersey Mike's then-current form of Development Agreement and Franchise Agreement. The new agreements will have a term limited to the unexpired term of the original agreement and will supersede the original terms.
Additionally, the transferee must execute a Guaranty and Assumption of Obligations, along with any other collateral agreements that Jersey Mikes requires for new Development Agreements and Franchise Agreements at that time. This ensures that the transferee is legally bound to fulfill the obligations and responsibilities outlined in the agreements.
Furthermore, the transferee must provide Jersey Mikes with a waiver and release regarding liability for any financial data, earnings claims, representations, or other information that the original developer provided to them. This protects Jersey Mikes from potential disputes arising from information shared between the developer and the transferee during the transfer process.