For a Jersey Mikes franchise, what is the 'Opening Deadline' by which the Franchised Restaurant must be opened, and what are the conditions that determine this deadline?
Jersey_Mikes Franchise · 2025 FDDAnswer from 2025 FDD Document
If you fail to submit a fully-executed lease, which has been previously approved by Company, within five months from the date you sign the Franchise Agreement, you or Company may terminate the Franchise Agreement. Additionally, you must open your Franchised Restaurant within nine months from the date you sign the Franchise Agreement, or four months from the date that you submit a fully executed lease (which has been previously approved by Company) to Company, whichever is earlier (the "Opening Deadline"), unless you obtain an extension of the Opening Deadline from Company in writing. If you fail to open your F ranchised Restaurant by the Opening Deadline, Company may terminate the Franchise Agreement. (Sections 3.5, 13.1, and 17.2).
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 35–51)
What This Means (2025 FDD)
According to Jersey Mike's 2025 Franchise Disclosure Document, the 'Opening Deadline' for a new franchise restaurant is determined by two conditions. The first condition is that the restaurant must open within nine months from the date the Franchise Agreement is signed. However, there's an alternative: if the franchisee submits a fully executed lease (previously approved by Jersey Mike's) to the company, the restaurant must open within four months from that lease submission date. The deadline is whichever of these two dates comes first, unless Jersey Mike's grants a written extension.
This means a prospective Jersey Mike's franchisee needs to be highly proactive in securing a suitable location and finalizing the lease agreement. Delays in lease execution directly impact the timeline for opening and could shorten the available window. Failing to meet the Opening Deadline can result in Jersey Mike's terminating the Franchise Agreement, potentially leading to a loss of investment.
It's important to note that securing an extension to the Opening Deadline requires written approval from Jersey Mike's. Franchisees should not assume an extension will be granted and should communicate proactively with the franchisor if they anticipate any difficulties in meeting the initial deadline. This proactive communication and diligent management of the site selection and build-out process are crucial for a successful franchise launch with Jersey Mike's.