Why are JMFS and Affiliates' consolidated audited financial statements provided in relation to Jersey Mikes?
Jersey_Mikes Franchise · 2025 FDDAnswer from 2025 FDD Document
2023 and December 31, 2022. Company's fiscal year end is December 31.
Attached as Exhibit C-2 are JMFS and Affiliates' consolidated audited financial statements as of December 31, 2024, 2023 and 2022, and for the years ended December 31, 2024, December 31, 2023, and December 31, 2022, respectively. JMFS and Affiliates' consolidated audited financial statements are provided for disclosure purposes only, because JMFS will perf orm certain franchise, marketing,
development, intellectual property, technology and operational and reporting services on behalf of Company. Due to the 2019 Securitization Transaction, JMFS is not a party to any Franchise Agreement or Area Development Agreement with franchisees. Neither JMFS nor its Affiliates guarantee Company's obligation under any Franchise Agreement or Area Development Agreement.
Source: Item 21 — FINANCIAL STATEMENTS (FDD pages 76–77)
What This Means (2025 FDD)
According to Jersey Mike's 2025 Franchise Disclosure Document, the consolidated audited financial statements of JMFS and Affiliates are included for disclosure purposes. This is because JMFS performs specific services for Jersey Mike's, including franchise, marketing, development, intellectual property, technology, operational, and reporting services. These services are performed on behalf of A Sub Above, LLC, which is the company that offers Jersey Mike's franchises.
Despite JMFS providing these services, the FDD clarifies that JMFS is not a party to any Franchise Agreement or Area Development Agreement with franchisees due to a 2019 Securitization Transaction. Furthermore, neither JMFS nor its affiliates guarantee A Sub Above, LLC's obligations under any Franchise Agreement or Area Development Agreement. This distinction is important for prospective franchisees to understand the relationship between the entities and their respective responsibilities.
In essence, while JMFS plays a crucial role in supporting the Jersey Mike's franchise system through various services, the financial statements of JMFS and Affiliates are provided for informational transparency. This allows potential franchisees to gain a broader understanding of the financial health of the entities involved in supporting the Jersey Mike's brand, even though JMFS itself does not directly engage in franchise agreements or guarantee the franchisor's obligations.