How many Jersey Mikes locations were reacquired by the franchisor in California during 2024?
Jersey_Mikes Franchise · 2025 FDDAnswer from 2025 FDD Document
WNED OUTLETS STATUS SUMMARY FOR FISCAL YEARS 2022 TO 2024 1,2
| State | Year | Outlets Operating at Start of Year | Outlets Opened | Outlets Reacquired From Franchisee | Outlets Closed | Outlets Sold to Franchisee | Outlets Operating At End of Year |
|---|---|---|---|---|---|---|---|
| 2022 | 0 | 1 | 0 | 0 | 0 | 1 | |
| Arizona | 2023 | 1 | 1 | 0 | 0 | 0 | 2 |
| 2024 | 2 | 0 | 0 | 0 | 1 | 1 | |
| 2022 | 5 |
Source: Item 20 — OUTLETS AND FRANCHISEE INFORMATION (FDD pages 66–76)
What This Means (2025 FDD)
According to Jersey Mikes' 2025 Franchise Disclosure Document, there were 2 locations in California that were reacquired by the franchisor during 2024. This means that Jersey Mikes took over the operations of these 2 locations from the franchisees who previously operated them.
For a potential franchisee, this information is relevant for a few reasons. First, it provides insight into the stability and performance of existing Jersey Mikes franchises. Reacquisitions could indicate underperforming locations or strategic decisions by Jersey Mikes to consolidate operations. Second, it highlights the possibility of Jersey Mikes assuming control of a franchise, which could impact a franchisee's investment and operational autonomy.
It's important to note that reacquisitions are not necessarily negative. Jersey Mikes might reacquire locations for various reasons, such as franchisee retirement, breach of contract, or strategic repositioning. However, a high number of reacquisitions could signal underlying issues within the franchise system. A prospective franchisee should inquire about the reasons behind any reacquisitions to assess the overall health and stability of the Jersey Mikes franchise network.
Franchise reacquisition is a fairly common practice in the franchise industry. It is important for prospective franchisees to understand the reasons behind reacquisition and the potential impact it could have on their investment.