For a Jersey Mikes franchise, what are the franchisee's responsibilities regarding transportation, meals, lodging, and salaries for staff attending the Phase 2 training program?
Jersey_Mikes Franchise · 2025 FDDAnswer from 2025 FDD Document
- 8 Training. You are responsible for arranging transportation and paying the expenses for meals and lodging (as well as salary and benefits) for any persons attending the four-day or five-day Phase 2 training program in New Jersey or in-market, as applicable.
The amount expended will depend on the distance you must travel and the type of accommodation you choose.
In addition, you are responsible for the salaries of your staff as they go through the in-store training program the week before the Restaurant opens.
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 24–28)
What This Means (2025 FDD)
According to Jersey Mikes' 2025 Franchise Disclosure Document, franchisees are responsible for covering certain expenses related to the Phase 2 training program. Specifically, the franchisee must arrange and pay for the transportation, meals, and lodging for anyone attending the four-day or five-day Phase 2 training, whether it's held in New Jersey or in the local market. Franchisees are also responsible for the salaries and benefits of those attending the training.
This means a prospective Jersey Mikes franchisee needs to factor in these training-related costs when projecting their initial investment. The exact amount will vary depending on the distance traveled, the type of accommodations chosen, and the number of staff members attending the training. The FDD indicates that the estimated initial investment for training ranges from $1,000 to $68,000, which encompasses these expenses.
In addition to the Phase 2 training program, Jersey Mikes franchisees are also responsible for the salaries of their staff during the in-store training program that takes place the week before the restaurant opens. This further emphasizes the importance of budgeting for employee compensation during the initial setup phase. Franchisees should carefully consider these costs to ensure they have sufficient capital to cover all training-related expenses and staff salaries before the restaurant begins generating revenue.
Overall, the financial responsibility for training-related costs is a significant factor for new Jersey Mikes franchisees. Proper planning and budgeting are essential to avoid unexpected financial strain during the initial stages of launching the franchise.