What is a Jersey Mikes franchisee required to do if they become aware of a Crisis Management Event?
Jersey_Mikes Franchise · 2025 FDDAnswer from 2025 FDD Document
owed to vendors or suppliers to become past due, it will constitute a breach under this Agreement.
- 13.18 Upon the occurrence of a Crisis Management Event (as defined below):
- a. Franchisee shall immediately inform Franchisee's Area Director and Franchisor's Operations Department by telephone or email (or as otherwise instructed in the Manual) upon becoming aware of such Crisis Management Event.
- b. To the extent Franchisor deems appropriate, in its sole and absolute discretion, Franchisor or its designee may control the manner in which the Crisis Management Event is handled by the parties, including, without limitation, conducting all communication with the news media and/or temporarily closing the Franchised Restaurant. Franchisee acknowledges that, in directing the management of any Crisis Management Event, Fr anchisor or i ts designee may engage the services of attorneys, experts, doctors, testing laboratories, public relations firms and those other professionals as it deems appropriate, and Franchisor may require Franchisee to reimburse Franchisor for all such costs. Franchisee and Franchisee's
employees shall cooperate fully with Franchisor or its designee in its efforts and activities in this regard and sha ll be bound by all further Crisis Management Event procedures developed by Franchisor. The indemnification obligations of the Franchisee as provided in Section 21.3 shall apply to all losses and expenses that may result from the exercise by Franchisor or its designee of the management rights granted in this Section.
- c. If such Crisis Management Event occurs at any other Restaurant operating under the Marks, including Restaurants not operated by Franchisee, Franchisor shall have the r ight to require Franchisee to: (1) close the Franchised Restaurant, (2) suspend some or a ll operations at the Franchised Restaurant, and/or (3) take such remedial actions as Franchisor determines are appropriate as a condition to Fra nchisee's reopening of the Franchised Restaurant. Franchisor's rights under this Section 13.18 shall be exercised in its sole and absolute discretion and shall continue until Franchisor determines that the Crisis Management Event is resolved. Franchisor shall have no liability to Franchisee for any losses arising from a closure or suspension of operations or expenses that Franchisee incurs in taking remedial actions under this Section 13.18.
- d. "Crisis Management Event" means any event that occurs at or about the Franchised Restaurant that has or may cause harm or injury to customers or employees, such as food contamination, food spoilage/poisoning, food tampering/sabotage, contagious diseases, natural disasters, terrorist acts, shootings, or any other circumstance which may damage the System, the Marks, or the image or reputation of Franchisor or its affiliates.
14.
Source: Item 22 — CONTRACTS (FDD page 77)
What This Means (2025 FDD)
According to Jersey Mikes's 2025 Franchise Disclosure Document, a franchisee must immediately inform their Area Director and Jersey Mike's Operations Department by telephone or email (or as otherwise instructed in the Manual) upon becoming aware of a Crisis Management Event. Jersey Mikes, at its sole discretion, can control how the event is handled, including communications with the media or temporarily closing the restaurant. The franchisee must fully cooperate with Jersey Mikes's efforts and adhere to any Crisis Management Event procedures they develop.
Jersey Mikes may engage professionals such as attorneys, experts, doctors, testing laboratories, and public relations firms to manage the Crisis Management Event, and the franchisee may be required to reimburse Jersey Mikes for these costs. The franchisee is also obligated to indemnify Jersey Mikes for any losses and expenses resulting from the exercise of these management rights.
A "Crisis Management Event" is defined as any event at or around the franchised restaurant that could cause harm or injury to customers or employees. Examples include food contamination, food spoilage/poisoning, food tampering/sabotage, contagious diseases, natural disasters, terrorist acts, or shootings. It also encompasses any circumstance that may damage the Jersey Mikes system, the brand's trademarks, or the reputation of Jersey Mikes or its affiliates. Jersey Mikes also has the right to require a franchisee to close or suspend operations, or take remedial actions, if a Crisis Management Event occurs at another Jersey Mikes location.