For a Jersey Mikes franchise agreement, what is considered the 'Effective Date' of the agreement?
Jersey_Mikes Franchise · 2025 FDDAnswer from 2025 FDD Document
2.1 This Agreement shall be effective and binding from the date of its execution by Franchisor (the "Effective Date") and shall expire ten (10) years from the Effective Date, which is described as the Expiration Date on the Summary Pages.
Source: Item 22 — CONTRACTS (FDD page 77)
What This Means (2025 FDD)
According to the 2025 Jersey Mikes Franchise Disclosure Document, the Effective Date of the franchise agreement is the date it is executed by the franchisor, A SUB ABOVE, LLC. The agreement becomes effective and legally binding on this date. The franchise agreement lasts for a term of ten years from the Effective Date, with the expiration date listed on the Summary Pages.
This means that the franchisee's obligations and rights under the agreement begin as soon as Jersey Mikes signs the document. This is a common practice in franchising, as it formally establishes the relationship and sets the clock ticking on the franchise term. The franchisee needs to be aware of this date, as it determines when renewal options must be exercised.
Specifically, the franchisee has the option to renew the franchise for one additional ten-year term, provided certain conditions are met. These conditions include substantial compliance with the agreement's provisions, maintaining possession of the restaurant premises, and meeting all financial obligations. The franchisee must also sign Jersey Mikes' then-current form of the franchise agreement and provide a general release of claims against the franchisor.