What is the Jersey Mikes franchisee's responsibility regarding site selection for the Franchised Restaurant?
Jersey_Mikes Franchise · 2025 FDDAnswer from 2025 FDD Document
If the Restaurant Location has not been identified on the Summary Pages, Franchisee will find an acceptable location for the Restaurant within the search area identified in Exhibit B-1 of this Agreement (the, "Search Area"). The Search Area has been identified for the sole purpose of facilitating the orderly development of the market, and not for purposes of granting Franchisee any exclusivity or protection within the Search Area. Franchisee acknowledges and agrees that Franchisor does not guarantee that Franchisee will find an acceptable site within the Search Area description set forth on Exhibit B-1 and that the Search Area is subject to change upon mutual agreement by Franchisor and Franchisee. Any change in the Search Area shall be made in the form of a n amendment to thi s Agreement, which must be signed by Franchisor and Franchisee prior to Franchisee beginning the site selection process within the amended Search Area.
Franchisee shall not relocate its Restaurant without the prior written approval of Franchisor.
- 3.6 Franchisee agrees that promptly af ter obtaining possession of the site for the Franchised Restaurant it will: (i) hire a licensed architect approved by Franchisor, (or if Franchisee chooses to hire an architect not approved by Franchisor, pay Franchisor a fee of Five Thousand Dollars ($5,000.00) to cover Franchisor's costs for oversight of an unapproved architect), to prepare and submit for approval by Franchisor a site survey and any modification to Franchisor's basic architectural plans and specifications (which plans may require modification in order to construct a JERSEY MIKE'S Restaurant), including requirements for dimensions, exterior design, materials, interior design and layout, equipment, fixtures, furniture, signs and decorating, required for the development of a JERSEY MIKE'S Restaurant at the site leased or purc hased therefore, provided that Franchisee may mod ify Franchisor's basic plans and specifications only to the extent required to comply with all applicable ordinances, building codes and permit requirements and with prior notification to and approval by Franchisor; (ii) hire a licensed contractor approved by Franchisor to construct the Franchised Restaurant or, if Franchisee chooses to hire a contractor not approved by Fr anchisor, pay Fr anchisor a f ee of F ive Thousand D ollars ($5,000.00) to cover Franchisor's costs for periodic inspections of construction site to ensure compliance with System Standards; (iii) obtain all required zoning changes; all required building, utility, health, sanitation, and sign permits and licenses and any other required permits and licenses; (iv) pur chase or lease equipment, fixtures, furniture and signs a s provided in this Agreement; (v) complete the construction and/or remodeling, equipment, fixtures, furniture and sign installation and decorating of the Franchised Restaurant in full and strict compliance with plans and spe cifications therefore approved by F ranchisor and a ll applicable ordinances, building codes and permit requirements; (vi) obtain all customary contractors' sworn statements and partial and final waivers of lien for construction, remodeling, decorating and installation services; and (vii) otherwise complete development of and have the Franchised Restaurant ready to open and commence the conduct of its business in accordance with Section 13 of this Agreement.
Source: Item 22 — CONTRACTS (FDD page 77)
What This Means (2025 FDD)
According to Jersey Mikes's 2025 Franchise Disclosure Document, the franchisee is responsible for finding an acceptable location for the restaurant within a designated search area, if the location isn't already specified in the agreement. The search area is defined in Exhibit B-1 of the agreement and is intended to facilitate orderly market development, without granting exclusivity or protection to the franchisee. The franchisee acknowledges that Jersey Mikes does not guarantee an acceptable site will be found within this area, and the search area can be changed with mutual agreement between Jersey Mikes and the franchisee via a signed amendment to the agreement. The franchisee cannot relocate the restaurant without prior written approval from Jersey Mikes.
Furthermore, the Jersey Mikes franchisee is responsible for actions to be taken promptly after obtaining possession of the site. This includes hiring a licensed architect approved by Jersey Mikes to prepare a site survey and any necessary modifications to Jersey Mikes's architectural plans. If the franchisee hires an unapproved architect, they must pay Jersey Mikes a $5,000 fee to cover oversight costs. The franchisee is also responsible for hiring a licensed contractor approved by Jersey Mikes for construction. Using an unapproved contractor also incurs a $5,000 fee for periodic inspections by Jersey Mikes to ensure compliance with system standards.
The franchisee is also responsible for obtaining all required zoning changes, building permits, utility connections, health and sanitation permits, sign permits, and any other necessary permits and licenses. They must purchase or lease the required equipment, fixtures, furniture, and signs as specified in the agreement. The franchisee must complete the construction and/or remodeling, equipment installation, and decorating of the restaurant in strict compliance with the approved plans, specifications, and all applicable ordinances, building codes, and permit requirements.
Finally, the franchisee must obtain all customary contractors' sworn statements and partial and final waivers of lien for construction, remodeling, decorating, and installation services. They are responsible for ensuring the restaurant is fully developed and ready to open and conduct business in accordance with Section 13 of the agreement.