For how long after the Jersey Mikes Franchise Agreement is terminated are you prohibited from owning or engaging in a similar submarine-type sandwich business?
Jersey_Mikes Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section in Franchise Agreement | Summary |
|---|---|---|
| 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. |
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, if the Franchise Agreement is terminated, you are subject to a non-competition covenant. This covenant restricts you from owning, maintaining, engaging in, or consulting with any business specializing in the sale of submarine-type sandwiches or prepared food products similar to those offered by the Jersey Mikes system.
The restriction lasts for 2 years following the termination of the Franchise Agreement. This non-compete period applies within specific geographic boundaries: the Metropolitan Statistical Area (as defined by the United States Census Bureau) where 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 Jersey Mikes system.
This means that after your franchise agreement ends, you cannot operate or be involved with a competing submarine sandwich business within the defined area for two years. This is a standard practice in franchising to protect the brand and market share of Jersey Mikes. Prospective franchisees should carefully consider these restrictions and how they might impact their future business opportunities should they decide to leave the Jersey Mikes system.