Does JMFS guarantee Jersey Mikes' obligations under any Franchise Agreement?
Jersey_Mikes Franchise · 2025 FDDAnswer from 2025 FDD Document
JMFS and/or Company may partner with a third-party lender to provide financing for the Coach Rod Smith Program. If that happens, you will sign the financing documents required by the third-party lender which may contain materially different terms than JMFS's promissory note and guaranty. JMFS and/or Company may guaranty those obligations in such event.
Source: Item 21 — FINANCIAL STATEMENTS (FDD pages 76–77)
What This Means (2025 FDD)
Based on the 2025 Franchise Disclosure Document, it is not explicitly stated whether JMFS (Jersey Mike's Franchise Systems) guarantees Jersey Mike's obligations under the Franchise Agreement. However, the document does mention situations where JMFS may provide a guaranty related to financing.
Specifically, in the context of the Coach Rod Smith Program, JMFS and/or Company (presumably Jersey Mike's) may partner with a third-party lender to provide financing. In such cases, franchisees would sign financing documents required by the third-party lender, which may contain different terms than JMFS's standard promissory note and guaranty. The FDD states that "JMFS and/or Company may guaranty those obligations in such event."
This suggests that JMFS's guarantee is conditional and tied to specific financing arrangements, rather than a blanket guarantee of all of Jersey Mike's obligations under every Franchise Agreement. A prospective franchisee should seek clarification from Jersey Mike's regarding the specific circumstances under which JMFS would provide a guarantee and the extent of such a guarantee.