factual

If a Jersey Mikes franchisee executes a lease, what must the lease include?

Jersey_Mikes Franchise · 2025 FDD

Answer from 2025 FDD Document

WHEREAS, Franchisee has executed or intends to execute a Franchise Agreement (the Franchise Agreement") with A SUB ABOVE, LLC, ("Franchisor") for the operation of a JERSEY MIKE'S restaurant at the Location, and as a requirement of the Franchise Agreement, the lease for the Location shall include the provisions contained in this Rider; and

WHEREAS, Landlord and Franchisee agree that the terms contained in this Rider shall supersede any terms to the contrary set forth in the Lease;

NOW THEREFORE, in consideration of mutual covenants set forth in this Rider, the execution and delivery of the Lease, and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, Landlord and Franchisee hereby agree as follows:

    1. Under the Franchise Agreement, any lease for the location of the Franchised Restaurant is subject to Franchisor's approval. Accordingly, the Lease is contingent upon such approval.
    1. The Lease may not be modified, amended, renewed or extended in any manner or assigned by Franchisee without Franchisor's prior written consent.
    1. Landlord and Franchisee hereby acknowledge that Franchisee has agreed under the Franchise Agreement that Franchisor and its personnel or agents shall have the right to enter the Location for certain purposes. Landlord hereby agrees not to interfere with or prevent such entry by Franchisor, its personnel or agents. Landlord and Franchisee hereby further acknowledge that in the event the Franchise Agreement expires (without execution of a successor franchise agreement) or is terminated; Franchisee is obligated to take certain steps under the Franchise Agreement to deidentify the location as a Restaurant. Landlord agrees to permit Franchisor, its personnel or agents, to enter the Location and remove signs, decor and materials displaying any marks, designs or logos owned by Franchisor, provided Franchisor shall bear the expense of repairing any damage to the Location that occurs solely as a result of Franchisor's actions.
    1. Landlord shall deliver to Franchisor a copy of any notice of default or termination of the Lease at the same time such notice is delivered to Franchisee.
    1. Copies of any and all notices required or permitted hereby or by the Lease shall also be sent to Franchisor at 2251 Landmark Place, Manasquan, New Jersey, 08736, Attn: General Counsel, or such other address as Franchisor shall specify by written notice to Landlord.
    1. Notwithstanding anything to the contrary contained in the Lease, Franchisee shall have the absolute right to sublet, assign or otherwise Transfer its interest in the Lease to Franchisor or its Affiliate, to another JERSEY MIKE'S franchisee, or to a corporation with which Franchisee or Franchisor may merge or consolidate, without Landlord's approval, written or otherwise, and without execution of a guarantee of Franchisor's obligations thereunder.

Source: Item 22 — CONTRACTS (FDD page 77)

What This Means (2025 FDD)

According to the 2025 Jersey Mikes Franchise Disclosure Document, any lease for the location of a franchised restaurant is subject to Jersey Mikes' approval. The lease cannot be modified, amended, renewed, or extended in any way, nor can it be assigned by the franchisee without Jersey Mikes' prior written consent. Jersey Mikes and its representatives have the right to enter the premises for specific reasons, and the landlord must not obstruct such entry. If the Franchise Agreement expires or is terminated, the franchisee must take steps to de-identify the location as a Jersey Mikes restaurant, and the landlord must allow Jersey Mikes to remove any signs, decor, or materials displaying Jersey Mikes' branding, with Jersey Mikes covering the costs of repairing any damage caused by these actions.

The landlord must provide Jersey Mikes with a copy of any default or termination notice sent to the franchisee. All notices related to the lease must also be sent to Jersey Mikes at 2251 Landmark Place, Manasquan, New Jersey, 08736, Attn: General Counsel, or any other address specified by Jersey Mikes in writing.

Notwithstanding any conflicting terms in the lease, the franchisee has the right to sublet, assign, or transfer their interest in the lease to Jersey Mikes, its affiliates, another Jersey Mikes franchisee, or a corporation involved in a merger or consolidation with the franchisee or Jersey Mikes, without requiring the landlord's approval or a guarantee of Jersey Mikes' obligations.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.