What minimum equity interest must a Controlling Principal own in the Jersey Mikes franchise?
Jersey_Mikes Franchise · 2025 FDDAnswer from 2025 FDD Document
The JERSEY MIKE'S Franchised Restaurant is to be at all times under the direct on-premises supervision of your Controlling Principal, or a competent employee acting as full-time manager or shift supervisor who has satisfactorily completed Company's initial training program and has been approved in writing by Company. "Controlling Principal" as used in this Disclosure Document means a Principal who is designated by, and owns at least 10% equity interest in, you (if you're an entity) and approved by Company as the individual who is responsible for operating your Restaurant and causing you to comply with the Franchise Agreement. "Principal" means your, or your affiliate's, officers and directors, partners or members, and persons holding an ownership interest in you (if you're an entity) or your affiliate, in the Franchise Agreement or the assets of your Restaurant. You will at all times faithfully, honestly and diligently perform your obligations arising under the Franchise Agreement and will not engage in any business or other activities that will conflict with these obligations. Company may condition the approval of a new designated manager or Controlling Principal upon the individual's successful completion of Phase II of Company's initial training program.
Source: Item 15 — OBLIGATION TO PARTICIPATE IN THE ACTUAL OPERATION OF THE FRANCHISED RESTAURANT (FDD page 56)
What This Means (2025 FDD)
According to Jersey Mike's 2025 Franchise Disclosure Document, a Controlling Principal must own at least a 10% equity interest in the franchise if the franchisee is an entity. The Controlling Principal is designated by the entity and approved by Jersey Mike's as the individual responsible for operating the restaurant and ensuring compliance with the Franchise Agreement.
This requirement ensures that someone with a significant stake in the business is actively involved in its operation and management. This individual is the primary point of contact for Jersey Mike's and is accountable for maintaining the brand's standards and adhering to the franchise agreement.
For prospective franchisees operating as a business entity, it's crucial to identify and designate a Controlling Principal who meets this equity requirement and is prepared to take on the responsibilities associated with the role. This individual must also be approved by Jersey Mike's and complete the necessary training programs.