Is JMFS a party to any Area Development Agreement with Jersey Mikes franchisees?
Jersey_Mikes Franchise · 2025 FDDAnswer from 2025 FDD Document
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As part of the 2019 Securitization Transaction, JMFS transferred to Company, all the existing Franchise Agreements and Area Development Agreements, certain agreements related to the Franchise Agreements and Area Development Agreements, and all of the JERSEY MIKE'S trademarks, service marks and other intellectual property related to the JERSEY MIKE'S brand and franchise system.
At the time of closing of the 2019 Securitization Transaction, JMFS entered into a management agreement, dated December 23, 20 19, with Company and some of its affiliates ("Management Agreement"). JMFS's responsibilities under the Management Agreement include performing certain franchise, marketing, development, intellectual property, technology and operational and reporting services on behalf of Company. JMFS also provides management services in relation to administration of the Corporate Advertising and Development Fund, the National Media Fund, and the Cooperative Advertising Fund (each described in Item 11).
Sale of Majority Ownership
On January 16, 2025, investment funds managed by affiliates of Blackstone Inc. acquired a majority ownership position in JMFS (and certain of its direct and indirect affiliates) and the JERSEY MIKE'S franchise system through the following intermediaries: Jersey Mike's MidCo II, LLC, Jersey Mike's MidCo
I, LLC, Jersey Mike's HoldCo, LLC, Submarine Buyer LLC, and Submarine Buyer Holdco LLC.
Source: Item 21 — FINANCIAL STATEMENTS (FDD pages 76–77)
What This Means (2025 FDD)
According to Jersey Mike's 2025 Franchise Disclosure Document, Jersey Mike's Franchise Systems, LLC (JMFS) was previously involved in Area Development Agreements. Specifically, in 2019, JMFS transferred all existing Franchise Agreements and Area Development Agreements to the Company as part of a Securitization Transaction.
Furthermore, the FDD indicates that JMFS entered into a management agreement with the Company in December 2019. Under this agreement, JMFS provides services related to franchise, marketing, development, intellectual property, technology, and operational support on behalf of the Company. JMFS also manages the Corporate Advertising and Development Fund, the National Media Fund, and the Cooperative Advertising Fund.
Additionally, the Coach Rod Smith Program, offered by JMFS, provides qualified managers of Jersey Mike's restaurants the opportunity to develop a Jersey Mike's restaurant under specific terms and conditions. Franchisees participating in this program may have agreements amended to reflect the program's terms.
While JMFS no longer directly enters into Area Development Agreements, it continues to play a significant role in supporting and managing various aspects of the Jersey Mike's franchise system, including providing services to franchisees and administering key funds.