What is the length of the renewal term offered to Jersey Mikes franchisees?
Jersey_Mikes Franchise · 2025 FDDAnswer from 2025 FDD Document
2.1 This Agreement shall be effective and binding from the date of its execution by Franchisor (the "Effective Date") and shall expire ten (10) years from the Effective Date, which is described as the Expiration Date on the Summary Pages.
2.2 Franchisee shall have the option to renew this franchise at the expiration of the initial term of the franchise for one (1) additional term of ten (10) years, provided that all of the following conditions have been fulfilled:
a.
Franchisee has, during the entire term of this Agreement, substantially complied with all its provisions;
- b.
Source: Item 22 — CONTRACTS (FDD page 77)
What This Means (2025 FDD)
According to Jersey Mikes's 2025 Franchise Disclosure Document, the franchise agreement has an initial term of ten years. Jersey Mikes offers franchisees the option to renew their franchise for one additional term. This renewal term is also for a period of ten years, effectively allowing a franchisee to operate for a total of 20 years under the same franchise agreement, assuming they meet the renewal conditions.
To be eligible for renewal, a Jersey Mikes franchisee must substantially comply with all provisions of the franchise agreement throughout its entire term. The franchisee must also maintain possession of the restaurant premises and ensure the restaurant meets the then-current standards for new or renewing Jersey Mike's restaurants by the expiration date. This includes adhering to the latest image and decorative standards. If maintaining possession of the premises is not possible, the franchisee must secure a substitute location approved by Jersey Mikes.
Furthermore, the Jersey Mikes franchisee must provide written notice of their intent to renew the franchise at least six months, but no more than twelve months, before the initial term expires. All monetary obligations to Jersey Mikes and its affiliates must be satisfied, and the franchisee must sign the then-current form of the franchise agreement for renewals, along with any related agreements. The franchisee must also meet Jersey Mikes's current qualification and training requirements. Finally, the franchisee and their guarantors must sign a general release of all claims against Jersey Mikes and its affiliates.