What geographic areas are covered by the post-term non-compete clause for a Jersey Mikes franchisee?
Jersey_Mikes Franchise · 2025 FDDAnswer from 2025 FDD Document
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 Mikes's 2025 Franchise Disclosure Document, the post-term non-compete agreement restricts a franchisee from engaging in a business that specializes in submarine-type sandwiches or prepared food similar to those sold within the Jersey Mike's system. This restriction applies for a period following the termination of the franchise agreement.
The geographic scope of this restriction is defined by three different criteria. First, the non-compete applies within the Standard Metropolitan Statistical Area (SMSA), as defined by the U.S. Census Bureau, where the franchised restaurant is located. Second, it extends to a 10-mile radius from the premises of the former Jersey Mike's restaurant. Finally, the non-compete also covers a 10-mile radius from any other Jersey Mike's restaurant.
These restrictions mean that a former Jersey Mike's franchisee is significantly limited in their ability to open a competing sandwich shop in the same general area after their franchise agreement ends. The franchisee should carefully consider these limitations before investing in a Jersey Mike's franchise, as they could impact their future business opportunities.