What is the initial term length for a Jersey Mikes franchise agreement?
Jersey_Mikes Franchise · 2025 FDDAnswer from 2025 FDD Document
ally provided in this Agreement or any Exhibit attached to this Agreement.
2. TERM AND RENEWAL
2.1 This Agreement shall be effective and binding from the date of its execution by Franchisor (the "Effective Date") and shall expire ten (10) years from the Effective Date, which is described as the Expiration Date on the Summary Pages.
- 2.2 Franchisee shall have the option to renew this franchise at the expiration of the initial term of the franchise for one (1) additional term of ten (10) years, provided that all of the following conditions have been fulfilled:
- a. Franchisee has, during the entire term of this Agreement, substantially complied with all its provisions;
- b. Franchisee maintains possession of the Restaurant Premises and by the Expiration Date has brought the Franchised Restaurant into full compliance with the specifications and standards then applica ble for ne w or re newing JERSEY MIKE'S Restaurants, including, without limitation, its current image and decorative standards, and presents evidence satisfactory to Franchisor that it has the right to remain in possession of the Franchised Restaurant Premises ("Premises") for the duration of any renewal term; or, in the event Franchisee is unable to maintain possession of the Premises, or in the judgment of Franchisor the Franchised Restaurant should be relocated, Franchisee secures substitute Premises approved by Franchisor and has furnished, stocked and equipped such Premises to bring the Franchised Restaurant at its substitute Premises into full compliance with the then-current System Standards (as defined in Section 7.1) by the expiration date of this Agreement;
- c. Franchisee has given notice of renewal to Franchisor as provided in Section 2.3;
- d.
Source: Item 22 — CONTRACTS (FDD page 77)
What This Means (2025 FDD)
According to Jersey Mikes's 2025 Franchise Disclosure Document, the initial term of the franchise agreement is ten years. Specifically, the agreement is effective from the date of execution by Jersey Mikes and expires ten years from that effective date, as indicated on the Summary Pages.
This ten-year term is a standard duration for franchise agreements in the restaurant industry. It provides Jersey Mikes franchisees with a substantial period to establish their business, build a customer base, and recoup their initial investment. It also allows Jersey Mikes to maintain a consistent brand presence and operational standards over a significant period.
The franchisee has the option to renew the franchise for one additional term of ten years, provided they have substantially complied with all provisions of the agreement during the initial term. To renew, the franchisee must give Jersey Mikes written notice of their intent to renew at least six months, but not more than twelve months, before the initial term expires. Renewal is also contingent on meeting Jersey Mikes's then-current requirements for the restaurant's image, appearance, and equipment, and signing a general release of claims against Jersey Mikes.