Is the initial franchise fee refundable under a Jersey Mikes single-unit franchise agreement?

According to Jersey Mike's 2025 Franchise Disclosure Document, the initial franchise fee is generally non-refundable. Upon signing the Franchise Agreement, the initial fee is considered fully earned by Jersey Mike's. This fee compensates Jersey Mike's for the resources and assistance they provide to the franchisee during the initial setup phase. It also covers the opportunity cost Jersey Mike's incurs by granting the franchise to a specific individual, preventing them from offering it to someone else.

However, the FDD does state an exception: the initial fee may be refundable if specifically provided for in the Franchise Agreement or any attached exhibits. This suggests that there might be certain, limited circumstances under which a refund could be possible, but these would need to be explicitly outlined in the agreement itself. A prospective franchisee should carefully review the Franchise Agreement and any exhibits to identify any clauses that address the refundability of the initial fee.

In the absence of specific refund provisions, the initial franchise fee is non-refundable. This is a common practice in franchising, as the franchisor incurs significant upfront costs in evaluating and onboarding new franchisees. Therefore, it is crucial for potential Jersey Mike's franchisees to conduct thorough due diligence and carefully consider their decision before signing the Franchise Agreement and paying the initial fee.