factual

Is a Jersey Mike's franchisee required to purchase furnishings, materials, and equipment from a designated third-party vendor?

Jersey_Mikes Franchise · 2025 FDD

Answer from 2025 FDD Document

While Jersey Shore Construction LLC sells certain of these items to franchisees, Company requires you to purchase certain furnishings, materials, and equipment from its designated third-party vendor.

Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 28–32)

What This Means (2025 FDD)

According to Jersey Mike's 2025 Franchise Disclosure Document, franchisees are required to purchase certain furnishings, materials, and equipment from a designated third-party vendor. This requirement is in place to maintain the quality and consistency of products and services offered by Jersey Mike's. In 2024, Jersey Shore Construction LLC, an affiliate of Jersey Mike's, received $2,303,331 in payments from franchisees for purchases of the graphics package.

Jersey Mike's also mandates the use of specific vendors for other goods and services. Franchisees must offer Pepsi beverages and Frito Lay snack line. They are also obligated to purchase private and proprietary items, such as private-label meats and cheeses, bread, paper products, and uniforms with Jersey Mike's trademarked logos, from required vendors. These items are distributed through the Sysco Corporation or other distributors used by Jersey Mike's.

Furthermore, Jersey Mike's requires franchisees to use only real estate brokers approved by the company to locate a site for their Restaurant and only general contractors designated or approved by Jersey Mike's to construct the Restaurant. Franchisees deal directly with these brokers and contractors, and Jersey Mike's does not receive payments from them nor have any liability for their actions. These restrictions on suppliers are typical in franchising to ensure brand consistency and quality control, but franchisees should evaluate whether the approved vendors offer competitive pricing and service.

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.