For Jersey Mike's, is the existence of a Franchise Agreement for an individual Franchised Restaurant dependent on the continued existence of the Development Agreement?
Jersey_Mikes Franchise · 2025 FDDAnswer from 2025 FDD Document
For each JERSEY MI KE'S individual Franchised Restaurant developed in the D esignated Territory, a separate Franchise Agreement shall be signed and any Initial Franchise Fee prescribed on the Development Schedule shall be paid to Franchisor. All Franchise Agreements signed in connection with JERSEY MIKE'S individual Franchised Restaurants within the Designated Territory are independent of this Agreement. The continued existence of any such Franchise Agreement shall not depend on the continuing existence of this Agreement. If any conflict shall arise in connection with this Agreement and any Franchise Agreement signed within the Designated Territory, the latter shall have precedence and superiority over the former.
Source: Item 22 — CONTRACTS (FDD page 77)
What This Means (2025 FDD)
According to Jersey Mike's 2025 Franchise Disclosure Document, the existence of a Franchise Agreement for an individual franchised restaurant is independent of the Development Agreement. A separate Franchise Agreement must be signed for each Jersey Mike's restaurant developed within the designated territory, and the initial franchise fee must be paid.
The Franchise Agreements for individual Jersey Mike's restaurants are independent of the Development Agreement. The continuation of a Franchise Agreement does not rely on the continued existence of the Development Agreement. In case of any conflict between the Development Agreement and a Franchise Agreement, the Franchise Agreement takes precedence.
This means that if the Development Agreement is terminated for any reason, the Franchise Agreements for already-established Jersey Mike's restaurants will remain in effect, provided the franchisee is in compliance with the terms of those agreements. This provides a level of security for franchisees who have already invested in and are operating their restaurants.