Can a Jersey Mikes franchisee use the premises for purposes other than operating a franchised restaurant?
Jersey_Mikes Franchise · 2025 FDDAnswer from 2025 FDD Document
- 13.4 The Premises shall be used solely for the purpose of operating a JERS EY MIKE'S Franchised Restaurant consistent with this Agreement.
Franchisee agrees that it will offer for sale and sell at the Franchised Restaurant all types of sandwiches and other categories of food products and services that Franchisor from time to time authorizes and that it will not offer for sale or sell at the Franchised Restaurant any other c ategory of products or use such Premises for any purpose other than the operation of the Franchised Restaurant in full compliance with this Agreement.
Source: Item 16 — RESTRICTIONS ON WHAT THE FRANCHISEE MAY SELL (FDD pages 56–57)
What This Means (2025 FDD)
According to Jersey Mikes's 2025 Franchise Disclosure Document, the franchisee must use the premises solely for operating a Jersey Mike's restaurant. The franchisee is required to offer for sale only those food products and services that Jersey Mike's authorizes. They are prohibited from offering any other category of products or using the premises for any purpose other than operating the franchised restaurant in full compliance with the Franchise Agreement. This restriction ensures that the Jersey Mike's brand and operational consistency are maintained across all franchise locations.
This requirement means a Jersey Mikes franchisee cannot operate any other type of business from the same location. For example, a franchisee cannot sublet a portion of the space to another business, sell non-approved products, or use the premises for storage unrelated to the Jersey Mike's business. This exclusive use clause is a standard practice in franchising to protect the brand's integrity and ensure a consistent customer experience.
The franchisee's adherence to this clause is critical, as violating it could lead to a breach of the Franchise Agreement. Jersey Mikes retains the right to enforce these provisions to maintain uniformity and quality control within its franchise system. Therefore, prospective franchisees should carefully consider this restriction and ensure they are comfortable dedicating the entire premises to the Jersey Mike's business before entering into the agreement.