What is the purpose of the grand opening advertising program fee for a Jersey Mikes franchise?
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 franchisee must pay a grand opening advertising fee of $12,500 to promote the opening of their restaurant. However, in the event of a transfer or a franchisor-approved relocation, the fee is reduced to $5,000. This fee is specifically designated for Jersey Mike's to conduct a grand opening advertising program.
The fee is due in full when the franchisee signs a lease or contract to purchase the premises for their Jersey Mike's location. Payment is made through an automatic clearing house (ACH) account, as described in Section 11.2 of the franchise agreement. This ensures that Jersey Mike's receives the funds promptly to initiate the advertising program.
This grand opening advertising program is a crucial part of launching a new Jersey Mike's franchise. It helps to create awareness and attract customers to the new location. The funds are managed by Jersey Mike's to ensure a consistent and effective marketing strategy. The reduced fee for transfers or relocations acknowledges the different marketing needs compared to a brand-new store opening.