Can a Maker assign their Jersey Mikes Note to another party without permission?
Jersey_Mikes Franchise · 2025 FDDAnswer from 2025 FDD Document
- ASSIGNMENTS. The Maker may not assign, transfer, or sell this Note to any party without the written consent of the Holder.
Source: Item 22 — CONTRACTS (FDD page 77)
What This Means (2025 FDD)
According to Jersey Mikes's 2025 Franchise Disclosure Document, a Maker is restricted from assigning their Note to another party without obtaining prior written consent from the Holder, which in this case is Jersey Mike's Franchise Systems, LLC.
This stipulation is a protective measure for Jersey Mikes, ensuring they maintain control over who assumes the financial obligations associated with the Note. This requirement allows Jersey Mikes to assess the creditworthiness and reliability of any potential new party before they take over the Note.
For a prospective Jersey Mikes franchisee, this means that if they have a Note with Jersey Mikes, they cannot simply transfer that debt to someone else without explicit approval from Jersey Mikes. This condition is fairly standard in franchising and lending agreements, as it protects the lender's interests and ensures that any transfer of financial obligations is subject to their review and approval.