For a Jersey Mikes franchise agreement, what determines 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 Jersey Mikes's 2025 Franchise Disclosure Document, the effective date of the franchise agreement is determined by the date that Jersey Mikes executes the agreement. The agreement becomes binding on this date and lasts for a term of ten years, after which it expires, as indicated by the Expiration Date on the Summary Pages.
For a prospective franchisee, this means the start of their ten-year franchise term begins the moment Jersey Mikes signs the agreement. This date is important because it sets the timeline for various obligations and milestones, including the option to renew the franchise for an additional term.
The franchisee has the option to renew the franchise for one additional ten-year term, provided they meet certain conditions. These conditions include substantial compliance with the agreement, maintaining possession of the restaurant premises, satisfying all monetary obligations, and signing Jersey Mikes' then-current form of franchise agreement and related agreements. The franchisee must also provide written notice of their intent to renew at least six months, but not more than twelve months, before the initial term expires.