What intellectual property (IP) was contributed by the Parent and its subsidiaries to the Securitization Entities regarding the Jersey Mike's brand on December 23, 2019?

According to Jersey Mike's 2025 Franchise Disclosure Document, on December 23, 2019, the Parent company and its subsidiaries contributed substantially all of their intellectual property (IP) to Securitization Entities. This included software and all trademarks applicable to the Jersey Mike's brand. This contribution was part of a larger transaction that also included all franchise agreements, all development agreements, and all related rights to develop and expand franchising and licensing activities related to Jersey Mike's.

This transfer of IP and agreements to Securitization Entities is a significant aspect of Jersey Mike's financial structure. The Parent company then entered into a license agreement with these entities, allowing them to continue using the IP for operating and franchising Jersey Mike's restaurants. This arrangement allows Jersey Mike's to manage its assets and operations while potentially leveraging the Securitization Entities for financial purposes.

For a prospective franchisee, this securitization transaction indicates a complex corporate structure. While the day-to-day operations of a Jersey Mike's franchise may not be directly affected, understanding the relationship between the Parent company and the Securitization Entities can provide insight into the overall financial health and strategic direction of the Jersey Mike's brand. It also highlights that the trademarks, software and franchise agreements are owned by a separate entity, not Jersey Mike's Franchise Systems, LLC directly. This structure may have implications for the long-term management and stability of the franchise system.