How does a Jersey Mikes franchisee pay for the grand opening advertising program?
Jersey_Mikes Franchise · 2025 FDDAnswer from 2025 FDD Document
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- 10.3 Franchisee shall pay Franchisor Twelve Thousand Five Hundred Dollars ($12,500.00) for Franchisor's use in conducting a grand opening advertising program to promote the opening of the Franchised Restaurant; provided, however, that in the event of a transfer as described in Section 19.2 of this Agreement, or in the event of a Franchisor-approved relocation as described in Section 3.1 of this Agreement, Franchisee shall pay Franchisor Five Thousand Dollars ($5,000.00) for Franchisor's use in conducting such program. The payment is due in full on the date Franchisee signs a lease for the Premises, or a contract to purchase the Premises, a
Source: Item 22 — CONTRACTS (FDD page 77)
What This Means (2025 FDD)
According to Jersey Mike's 2025 Franchise Disclosure Document, a new franchisee must pay for the grand opening advertising program via their automatic clearing house (ACH) account. The standard payment is $12,500, which Jersey Mike's uses to conduct the grand opening advertising program. This payment is due in full when the franchisee signs a lease or purchase agreement for the premises.
However, the amount due is reduced to $5,000 in the event of a transfer of the franchise agreement or a franchisor-approved relocation of the restaurant. As with the standard payment, this reduced payment is also due when the franchisee signs a lease or purchase agreement for the premises and is payable via ACH.
This payment structure ensures that Jersey Mike's has the funds necessary to promote the opening of a new or relocated franchise location. By requiring payment via ACH, Jersey Mike's can ensure timely and reliable payment from franchisees. This is a fairly standard practice in the franchise industry, as it allows the franchisor to maintain control over advertising and marketing efforts while ensuring that franchisees contribute to these efforts.