Can a Jersey Mikes franchisee's immediate family members own or have interest in a business specializing in submarine-type sandwiches during the term of the agreement?
Jersey_Mikes Franchise · 2025 FDDAnswer from 2025 FDD Document
ciated with Franchisor's Marks and the System, or which would constitute an act of moral turpitude.
- b. Own, maintain, engage in, or have any interest in any business (including any business operated by Franchisee prior to entry into this Agreement) specializing in whole or in part, in the sale of submarine-type sandwiches or prepared food products the same as or similar to any product or service sold in the System.
- 16.4 Franchisee specifically acknowledges that, consistent with this Agreement, Franchisee will receive valuable training and confidential information, including without limitation, information regarding the promotional, operational, sales and marketing methods and techniques of Franchisor and the System. Accordingly, Franchisee covenants that except as otherwise approved in writing by Franchisor, neither Franchisee nor any of Franchisee's immediate family members shall, for period of two (2) years after the expiration, Transfer or termination of this Agreement, or if later, the date upon which Franchisee complies with the covenants of this Agreement, regardless of the cause of termination, either directly or indirectly, for itself, or through, on behalf of, or in conjunction with any person, persons, partnership, corporation, limited liability company or other entity, own, maintain, engage in, or have any interest in any business
specializing, in whole or in part, in the sale of submarine-type sandwiches or prepared food products the same as or similar to any product or service sold within the System:
- a. Within the Standard Metropolitan Statistical Area ("SMSA") as that term is defined by the Census Bureau of the United States, in which the Franchised Restaurant is located; or
- b. Within a radius of ten (10) miles of the Premises hereunder; or
- c. Within a radius of ten (10) miles of the Premises of any other Jersey Mike's Restaurant.
Source: Item 22 — CONTRACTS (FDD page 77)
What This Means (2025 FDD)
According to Jersey Mike's 2025 Franchise Disclosure Document, a franchisee and their immediate family members are generally restricted from owning or having an interest in any business that specializes in selling submarine-type sandwiches or similar prepared food products during the term of the franchise agreement. This restriction applies unless Jersey Mike's provides written approval otherwise. This is a standard practice in franchising to protect the brand and prevent direct competition from franchisees.
Specifically, the franchisee is prohibited from engaging in such competitive business activities. This restriction is in place to protect the Jersey Mike's system, brand, and market position. The non-compete clause ensures that franchisees remain focused on growing their Jersey Mike's business and do not divert resources or customers to competing ventures.
This restriction extends for a period of two years after the expiration, transfer, or termination of the agreement. This post-term restriction is limited to specific geographic areas: the Standard Metropolitan Statistical Area (SMSA) where the franchised restaurant is located, or within a 10-mile radius of the Jersey Mike's location, or within a 10-mile radius of any other Jersey Mike's Restaurant. This prevents former franchisees from immediately opening a competing sandwich shop nearby and leveraging the knowledge and experience gained while operating a Jersey Mike's franchise.