Can a Maker assign, transfer, or sell the Jersey Mikes note to another party?

According to Jersey Mikes's 2025 Franchise Disclosure Document, the Maker (the franchisee) is restricted from assigning, transferring, or selling the Promissory Note to another party without obtaining prior written consent from the Holder (Jersey Mike's Franchise Systems, LLC). This requirement is put in place to ensure that Jersey Mikes maintains control over who assumes the financial obligations associated with the note.

This restriction has significant implications for a potential Jersey Mikes franchisee. It means that the franchisee cannot simply transfer their debt obligations to someone else without Jersey Mikes's approval. This protects Jersey Mikes's financial interests and ensures that any new party assuming the debt is creditworthy and acceptable to them.

In practical terms, if a franchisee wants to get out of the loan agreement, they must first seek permission from Jersey Mikes. Jersey Mikes has the right to refuse the transfer if they are not satisfied with the proposed assignee. This clause gives Jersey Mikes a considerable amount of control over the financial aspects of the franchise agreement and limits the franchisee's flexibility in managing their debt. Franchisees should consider this lack of flexibility and control when evaluating the financial commitments associated with the franchise.