Can a Jersey Mikes franchisee determine their own prices, even with advertising approval?
Jersey_Mikes Franchise · 2025 FDDAnswer from 2025 FDD Document
The submission of advertising to Franchisor for approval shall not affect Franchisee's right to determine the prices at which Franchisee sells its products or services, except in accordance with Section 14.1 below.
Source: Item 22 — CONTRACTS (FDD page 77)
What This Means (2025 FDD)
According to Jersey Mike's 2025 Franchise Disclosure Document, a franchisee's right to determine prices is generally unaffected by the advertising approval process, with one exception. While Jersey Mike's requires franchisees to submit advertising and promotional materials for approval, the FDD states that this submission does not affect the franchisee's right to set their own prices for products and services.
However, this right is not absolute. Section 14.1 of the franchise agreement, referenced in the FDD, may contain stipulations that affect pricing decisions. Because Section 14.1 is not included in the provided excerpts, the exact nature of these potential limitations is not fully clear.
Therefore, while franchisees generally have the autonomy to set prices, it is important to review Section 14.1 of the franchise agreement to fully understand any restrictions Jersey Mike's may impose on pricing strategies. A prospective franchisee should carefully examine this section and discuss any concerns with the franchisor before signing the agreement.