When must a Jersey Mikes franchisee secure the required insurance policies?

According to Jersey Mike's 2025 Franchise Disclosure Document, a franchisee must secure the required insurance policies before taking possession and starting development of the premises for their franchised restaurant. However, if the franchisee's employees begin training before this date, workers' compensation and employer's liability insurance must be in place before the employees start training.

Jersey Mike's requires these policies to protect the franchisee, the franchisor, and their affiliates against potential losses, liabilities, personal injury, death, property damage, or any expenses related to the franchised restaurant. Both Jersey Mike's Franchise Systems, LLC and A Sub Above, LLC must be named as additional insureds in the policies for general liability purposes, with a 30-day notice of cancellation. The certificate holder listed must be "Jersey Mike's Franchise Systems, LLC, 2251 Landmark Place, Manasquan, New Jersey 08736".

This requirement ensures that all parties are protected from potential risks associated with the operation of the Jersey Mike's franchise. Franchisees must ensure they obtain the necessary insurance coverage in a timely manner to avoid any disruptions in their restaurant's development or training activities. Additionally, if the franchisee or an owner of the franchisee will participate in training, such individual must be covered by a workers' compensation policy and may not be excluded from such policy.

It is common practice in the franchise industry for franchisors to require franchisees to maintain specific insurance coverage to protect both the franchisee's business and the franchisor's brand. Failing to secure the required insurance in time could delay the opening of the Jersey Mike's restaurant and potentially violate the franchise agreement.