What payment mechanisms and currencies may a Jersey Mikes franchisee accept from customers at the franchised restaurant?
Jersey_Mikes Franchise · 2025 FDDAnswer from 2025 FDD Document
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restaurants. Product revenue represents products sold through Jersey Shore Construction, LLC. Revenue is recognized at the time the products are sold in accordance with ASC 606.
Gift Cards—The Company sells gift cards through a variety of channels in both physical and virtual forms, including at our company owned locations, the majority of franchised locations, online, our mobile application, and through various third-party retailers although they cannot be reloaded at these third-party retailers. These gift cards do not have an expiration date, and no service fees are charged on them. The initial sale of a gift card is recorded as a liability and recognized as revenue upon redemption at the store level for both corporate and franchised locations. In the event a gift card is not expected to be redeemed, breakage income is recognized based on historical redemption patterns, including the timing and channel in which the card was purchased or reloaded, and in accordance with government agencies under unclaimed property laws, if applicable. Bre
Source: Item 22 — CONTRACTS (FDD page 77)
What This Means (2025 FDD)
Based on the 2025 Franchise Disclosure Document, the Jersey Mikes system utilizes gift cards which can be sold through various channels in both physical and virtual forms, including at company-owned locations, the majority of franchised locations, online, their mobile application, and through various third-party retailers although they cannot be reloaded at these third-party retailers. These gift cards do not have an expiration date, and no service fees are charged on them. The initial sale of a gift card is recorded as a liability and recognized as revenue upon redemption at the store level for both corporate and franchised locations.
In the event a gift card is not expected to be redeemed, breakage income is recognized based on historical redemption patterns, including the timing and channel in which the card was purchased or reloaded, and in accordance with government agencies under unclaimed property laws, if applicable. Breakage income is recorded in continual service fees and other income in the consolidated statements of operations. During the years ended December 31, 2024, 2023, and 2022 the Company recognized $1,279,647, $0, and $0, respectively.
While the FDD mentions gift cards as a payment method, it does not specify what other forms of payment Jersey Mikes franchisees are allowed to accept. A prospective franchisee should inquire with Jersey Mikes about the acceptable forms of payment, including cash, credit cards, mobile payments, and any specific point-of-sale (POS) system requirements related to payment processing.