What law governs disputes regarding the marks associated with the Jersey Mikes franchise?
Jersey_Mikes Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section in Franchise Agreement | Summary |
|---|---|---|
| p. Your death or disability | Section 20 | Your heirs, beneficiaries, devisees or legal representative can apply to Company to continue operation of the Franchised Restaurant or sell or otherwise transfer interest in the Franchised Restaurant following death or incapacity of any person owning 50% or more interest in Franchisee. If they fail t o meet th ese conditions, the Franch ise Agreement will terminate and Company will have the option to buy the Franchised Restaurant. |
| q. Non-competition covenants during the term of the franchise | Section 16.3 | You must not divert or attempt to divert any business or customer to a competitor, or perform any act which may harm the goodwill associated with the marks and the System; or own or otherwise have any interest in any business (including a business you currently operate) specializing in the sa le of submarine-type sandwiches or prepared food products the same as or similar to any product or service provided through the System. |
| r. Non-competition covenants after the franchise is terminated or expires | Section 16.4 | You must not own, maintain, engage in, consult with or have any interest in any business specializing in the sale of submarine-type sandwiches or prepared food products the same as or similar to any other product or service provided through the System for 2 years after the Franchise Agreement is terminated within the Metropolitan Statistical Area, as defined by the United States Census Bureau, in which the Franchised Restaurant is located or within a 10-mile radius of the Franchised Restaurant or within a 10-mile radius of any other business using the System. |
| s. Modification of the agreement | Sections 9, 22 and 25 | The Franchise Agreement can be modified only by written agreement between Company and you. Company can modify or change the Systemthrough changes in the Confidential Operations Manual. |
| t. Integration/merger clause | Sections 25 | Only the terms of t he Franchise Agreement and other related agreements are binding. No other representations or promises will be binding. Nothing in the Franchise Agreement or any other related written agreement is intended to disclaim representations made in the franchise disclosure document (subject to state law). |
| u. Dispute resolution by arbitration or mediation | Section 27 | All disputes subject first to mediation and, if not resolved through mediation, submitted to binding arbitration. Both mediation and arbitration will be conducted in Monmouth County, New Jersey (See state specific addenda) |
| v. Choice of forum | Section 27.2 | Any arbitration or permitted legal action will be brought in the appropriate state or federal court in New Jersey. (See state specific addenda) |
| w. Choice of law | Section 27.1 | New Jersey law applies (subject to state law), except that disputes regarding the marks will be governed by the United States Trademark Act of 1946 (Lanham Act, 15 U.S.C. Sec. 1051 et seq.), and the New Jersey Franchise Practices Act (N.J. Stat. Ann. Sec. 56:10-1 et seq.) only will apply if the Restaurant is located in New Jersey. (See state specific addenda) |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 57–64)
What This Means (2025 FDD)
According to Jersey Mikes's 2025 Franchise Disclosure Document, disputes regarding the marks associated with the franchise are governed by the United States Trademark Act of 1946, also known as the Lanham Act (15 U.S.C. Sec. 1051 et seq.). This means that any legal issues concerning Jersey Mikes's trademarks, such as infringement or misuse, will be resolved under federal trademark law.
This is a fairly standard practice in franchising, as trademarks are crucial for brand identity and consistency across all franchise locations. The Lanham Act provides a comprehensive framework for protecting these marks and ensuring that franchisees adhere to the brand's standards.
Additionally, the FDD specifies that the New Jersey Franchise Practices Act (N.J. Stat. Ann. Sec. 56:10-1 et seq.) will only apply if the Jersey Mikes restaurant is located in New Jersey. Therefore, franchisees operating outside of New Jersey will not have the protections of the New Jersey Franchise Practices Act for disputes outside of trademark issues.