What modifications must a Jersey Mikes franchisee make to the premises after termination to prevent association with the brand?
Jersey_Mikes Franchise · 2025 FDDAnswer from 2025 FDD Document
an Area Development Agreement based solely on a failure to satisfy a development schedule therein.
18. RIGHTS AND DUTIES OF PARTIES UPON EXPIRATION OR TERMINATION
Upon termination or expiration, this Agreement and all rights granted hereunder to Franchisee shall forthwith terminate, and:
- 18.1 Franchisee shall immediately cease to operate the Franchised Restaurant under this Agreement (unless Franchisor directs Franchisee otherwise in connection with Franchisor's exercise of Franchisor's option to purchase pursuant to Section 18.11), and shall not thereafter, directly or indirectly, represent to the public or hold itself out as a present or former franchisee of Franchisor.
- 18.2 Upon demand by Franchisor, Franchisee shall assign to Franchisor Franchisee's interest in any lease then in effect for the Premises, or if Franchisee is the owner of the Premises, negotiate in good faith with Franchisor for a lease which permits Franchisor or its designee to occupy the premises, and Franchisee shall furnish Fr anchisor with evidence satisfactory to Franchisor of c ompliance with this obligation within thirty (30) days after termination or expiration of this Agreement.
- 18.3 Franchisee shall immediately and perm anently cease to use, b y advertising or in any manner whatsoever, any Confidential Information, the Marks, any Contact Identifiers (as defined in Section 18.6) or any O nline Presence. In par ticular, Franchisee shall cease to use, withou t limitation, all signs, advertising materials, stationery, forms, and other articles which display the Marks associated with the System. Franchisor shall have the right to deactivate Franchisee's POS System.
- 18.4 Franchisee shall take such action as may be necessary to assign to Franchisor or Franchisor's designee any assumed name rights or equivalent registration filed with state, city, or county authorities which c ontains the name "JERSEY MIKE'S" or any other service mark or tra demark of Franchisor of compliance with this obligation within thirty (30) days after termination or expiration of this Agreement.
- 18.5 Franchisee agrees, in the event it continues to operate or subsequently begins to oper ate any other business, not to use any reproduction, counterfeit, copy or colorable imitation of the Marks either in connection with such other business or its promotion, which may cause confusion with such other business or its promotion or which may cause confusion, mistake or deception, or which may dilute Franchisor's exclusive rights in and to the Marks and further agrees not to utilize any designation of origin or description or representation which falsely suggests or represents an association or c onnection with Franchisor so as to constitute unfair competition. Franchisee shall make such modifications or alterations to the Premises operated hereunder immediately upon termination or expiration of this Agreement as may be necessary to prevent any a ssociation between Franchisor or the System and any business thereon subsequently operated by Franchisee or others, and shall make such specific additional changes thereto as Franchisor may reasonably request for that purpose. In the event Franchisee fails or refuses to comply with the requirements of this Section 18, Franchisor shall have the right to enter upon the Premises where Franchisee's Franchised Restaurant was conducted, without being guilty of trespass or any other tort, for the purpose of making or causing to be made such changes as may be required at the expense of Franchisee, which expense Franchisee agrees to pay upon demand.
Source: Item 22 — CONTRACTS (FDD page 77)
What This Means (2025 FDD)
According to Jersey Mike's 2025 Franchise Disclosure Document, upon termination of the franchise agreement, the franchisee must immediately cease operating the Jersey Mike's restaurant and cannot represent themselves as a current or former franchisee, unless Jersey Mike's directs otherwise in connection with exercising its option to purchase the restaurant. The franchisee must also stop using any confidential information, trademarks (the Marks), contact identifiers, or online presence associated with Jersey Mike's, which includes removing all signs, advertising materials, stationery, and forms displaying the brand's trademarks. Jersey Mike's has the right to deactivate the franchisee's POS system. The franchisee must also assign any assumed name rights containing "JERSEY MIKE'S" or any other service mark or trademark of Jersey Mike's to the franchisor.
Jersey Mike's, at its own expense, may choose to remove all signs, including exterior and interior signs, menu board panels, illuminated window signs, and door logos bearing Jersey Mike's trademarks. They may also remove distinctive physical and structural features that identify the Jersey Mike's system, such as Jersey Mike's branded items, beach chair photographs, wall murals, wall sconce lighting over beach chair graphics, POS system equipment, and Marlite Shiplap wall slates/boards. If Jersey Mike's chooses to remove these items, they have the right to access the premises to do so, and they may retain the removed items to compensate for the removal expenses.
However, if Jersey Mike's does not elect to remove the signs or distinctive features, the franchisee is obligated to remove them at their own expense. This ensures that the premises no longer appear to be associated with the Jersey Mike's brand after the franchise agreement has been terminated. This is a fairly standard practice in franchising, as franchisors want to protect their brand identity and prevent any confusion or misrepresentation after a franchise relationship ends.