What does the Jersey Mikes Late Fee apply to?
Jersey_Mikes Franchise · 2025 FDDAnswer from 2025 FDD Document
r those of third parties.
9 Late Fees. If you fail to pay when due any Continuing Royalty Fees, Advertising Contributions, amounts due for purchases by you from Company or its affiliates, or other amounts due to Company or its affiliates, these amounts will bear interest at the highest applicable lawful rate for open account business credit, not to exceed 1.5% per month from the date the payment was due. If your payments under the Franchise Agreement are 5 days or more late, you must pay Company the greater of $25 or 5% of the amount due per occurrence under the Franchise Agreement.
Company has the sole discretion to apply any payments by you to any past due indebtedness of yours for Continuing Royalty Fees, Advertising Contributions, purchases from Company and its affiliates, interest or any other indebtedness.
Company is not obligated to accept from you any payments after they are due, extend credit to you or otherwise finance your operation of
Source: Item 6 — OTHER FEES (FDD pages 15–24)
What This Means (2025 FDD)
According to Jersey Mike's 2025 Franchise Disclosure Document, the late fee applies to various financial obligations a franchisee may have. Specifically, it applies to Continuing Royalty Fees, Advertising Contributions, amounts due for purchases from Jersey Mike's or its affiliates, or other amounts due to Jersey Mike's or its affiliates. These overdue amounts will incur interest at the highest applicable lawful rate for open account business credit, but not exceeding 1.5% per month from the original due date.
In addition to interest, if payments are 5 days or more late, Jersey Mike's will charge a penalty. This penalty is the greater of $25 or 5% of the total amount due under the Franchise Agreement. Jersey Mike's retains the sole discretion to allocate any payments received from the franchisee towards any outstanding debts, including Continuing Royalty Fees, Advertising Contributions, purchases, interest, or any other form of indebtedness.
Jersey Mike's is not obligated to accept late payments, extend credit, or provide financing to support the franchisee's operations. This policy underscores the importance of timely payments to maintain good standing with the franchisor and avoid additional financial penalties and interest charges. Franchisees should ensure they have sufficient funds available to cover all obligations to Jersey Mike's and its affiliates to avoid these late fees and potential disruptions to their business operations.