Is non-subscriber's insurance sufficient to meet the workers' compensation insurance requirement for a Jersey Mikes franchise?
Jersey_Mikes Franchise · 2025 FDDAnswer from 2025 FDD Document
- e. Workers' compensation and e mployer's liability insurance as well as s uch other insurance as may be required by statute or rule of the state in which the Franchised Restaurant is l ocated and ope rated. Franchisee will obtain worker s' compensation insurance regardless of whether it is required by state law. Non-subscriber's insurance is insufficient to meet this requirement.
Source: Item 22 — CONTRACTS (FDD page 77)
What This Means (2025 FDD)
According to Jersey Mike's 2025 Franchise Disclosure Document, non-subscriber's insurance is not sufficient to meet the workers' compensation insurance requirements. Jersey Mike's requires franchisees to obtain worker's compensation insurance, regardless of whether it is required by state law.
Jersey Mike's mandates this coverage to protect both the franchisee and the franchisor from potential liabilities arising from employee injuries or illnesses. This requirement ensures that if a franchisee employee is injured on the job, there is a mechanism in place to cover medical expenses and lost wages.
This requirement is stricter than simply adhering to state law, as Jersey Mike's requires worker's compensation insurance even if the state does not mandate it. Prospective franchisees should factor in the cost of worker's compensation insurance when evaluating the financial feasibility of opening a Jersey Mike's franchise.