What obligations does a Jersey Mikes franchisee have regarding maintaining the quality of service, as outlined in Item 9, considering the System Standards described in Item 8?
Jersey_Mikes Franchise · 2025 FDDAnswer from 2025 FDD Document
greements comply with and are enforceable under applicable laws.
9. MODIFICATION OF THE SYSTEM
Franchisor reserves the right to change or modify the System in its sole and absolute discretion by adopting and using new or modified System Standards, trade names, trademarks, service marks, copyrighted materials, or specifications or standards for menu items, products, services, building design, equipment or new techniques and Franchisee shall accept, adopt and make any such mandatory changes at the Restaurant, as if they were part of this Agreement at the time of its execution. Franchisee will make such expenditures as such changes or modifications in the System as Franchisor may reasonably require, utilizing a Franchisor-approved licensed contractor, provided the cost of capital improvements, new equipment and remodeling does not exceed One Hundred Fifty Thousand Dollars ($150,000.00) during the term of this Agreement, and the cost of updates and upgrades of Franchisee's point-of-sale system ("POS System") does not exceed Fifty Thousand Dollars ($50,000) during the term of this Agreement. Franchisee shall not change, modify or alter the System in any way.
10. ADVERTISING
Recognizing the value of advertising and the importance of the standardization of advertising and promotion to further the goodwill and the public image of JERSEY MIKE'S Restaurants, Franchisee agrees as follows:
10.1 Franchisee will submit to Franchisor or its designated agency, for its prior approval, all promotional materials and advertising to be used by Franchisee, including, but not limited to, newspapers, radio, television, and internet advertising, direct mail advertising, specialty and novelty items, signs, boxes, napkins, bags and wrapping papers, as well as any advertisement for the sale of the Restaurant. If Franchisor does not provide written approval of said advertising and promotional materials within fifteen (15) days after receiving such materials, said materials shall be deemed disapproved. Failure by Franchisee to conform with the provisions in this Agreement and subsequent non-action by Franchisor to require Franchisee to cure or remedy this failure and default shall not be deemed a waiver of future or additional failures and defaults or any other provision of this Agreement. The submission of advertising to Franchisor for approval shall not affect Franchisee's right to determine the prices at which Franchisee sells its products or services, except in accordance with Section 14.1 below.
What This Means (2025 FDD)
According to Jersey Mikes's 2025 Franchise Disclosure Document, franchisees must adhere to specific System Standards to maintain quality of service. Jersey Mikes retains the right to modify the System, including adopting new standards for menu items, products, services, building design, and equipment. Franchisees are obligated to accept and implement these mandatory changes at their Restaurant as if they were part of the original agreement. Franchisees cannot change, modify, or alter the System in any way themselves. Franchisees must also get approval from Jersey Mikes for all promotional materials and advertising.
These changes may require franchisees to make expenditures for capital improvements, new equipment, and remodeling, but these costs will not exceed $150,000 during the term of the agreement. Additionally, costs for updates and upgrades to the point-of-sale system cannot exceed $50,000 during the agreement term. This ensures that Jersey Mikes can evolve its brand and offerings while maintaining consistency across all franchise locations.
Jersey Mikes also emphasizes the importance of standardized advertising and promotion to enhance the brand's goodwill and public image. Franchisees must submit all promotional materials to Jersey Mikes for approval, and failure to obtain approval within fifteen days results in disapproval. This requirement ensures that all advertising aligns with Jersey Mikes's brand standards and marketing strategies. However, franchisees retain the right to determine the prices at which they sell their products or services, except as otherwise specified in the agreement.