For Jersey Mikes, what is the Manager obligated to provide to the Company for the term of the Securitization Transactions?

According to Jersey Mike's 2025 Franchise Disclosure Document, the Manager (Jersey Mike's Franchise Systems, LLC) is obligated to provide services to the Company for the term of the Securitization Transactions. These services are related to assets contributed upon closing of the Securitization Transaction, specifically deferred franchise fees. The FDD mentions that the amortization of these services amounted to $737,810 for the year ended December 31, 2024, $799,161 for the year ended December 31, 2023, and $1,015,557 for the year ended December 31, 2022.

This arrangement stems from securitization transactions where Jersey Mike's transferred its intellectual property, franchise agreements, and development rights to Securitization Entities. In turn, Jersey Mike's Franchise Systems, LLC, as the Manager, provides ongoing services to these entities. These services include collecting franchisee payments, managing operations, and handling franchising, marketing, real estate, intellectual property, and reporting services.

The financial figures provided for the amortization of services due from the Manager indicate the scale of these obligations. The decreasing amortization amounts from 2022 to 2024 could reflect changes in the structure or valuation of the securitization agreements over time. Prospective franchisees should understand that these securitization transactions and the Manager's obligations are integral to Jersey Mike's financial structure.

Understanding the specifics of these services and the long-term financial implications is crucial for potential franchisees. While the FDD provides an overview, further due diligence into the securitization agreements and the Manager's role would be beneficial to assess any potential impact on the franchise system.