How much does a Jersey Mikes franchisee pay for the grand opening advertising program?
Jersey_Mikes Franchise · 2025 FDDAnswer from 2025 FDD Document
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- 10.3 Franchisee shall pay Franchisor Twelve Thousand Five Hundred Dollars ($12,500.00) for Franchisor's use in conducting a grand opening advertising program to promote the opening of the Franchised Restaurant; provided, however, that in the event of a transfer as described in Section 19.2 of this Agreement, or in the event of a Franchisor-approved relocation as described in Section 3.1 of this Agreement, Franchisee shall pay Franchisor Five Thousand Dollars ($5,000.00) for Franchisor's use in conducting such program. The payment is due in full on the date Franchisee signs a lease for the Premises, or a contract to purchase the Premises, a
Source: Item 22 — CONTRACTS (FDD page 77)
What This Means (2025 FDD)
According to Jersey Mike's 2025 Franchise Disclosure Document, a new franchisee is required to pay $12,500 for the grand opening advertising program. This fee is used by Jersey Mike's to conduct advertising to promote the opening of the franchised restaurant. The full payment is due when the franchisee signs a lease or contract to purchase the premises. Payment is made via the franchisee's automatic clearing house (ACH) account.
However, the amount due for the grand opening advertising program is reduced to $5,000 in the event of a transfer of the franchise agreement or a franchisor-approved relocation of the restaurant. This reduced fee also covers Jersey Mike's costs for conducting the grand opening advertising program under those specific circumstances.
It is important for prospective franchisees to note the timing of this payment, as it is due upon signing the lease or purchase agreement, which occurs before the restaurant is operational. Franchisees should ensure they have sufficient funds available to cover this expense at the appropriate time. The grand opening advertising program is designed to help generate initial business and awareness for the new Jersey Mike's location.