factual

Regarding the Jersey Mikes Franchise Agreement and Area Development Agreement, what section is entirely deleted from the 'Summary' section of Item 17(v) of the Disclosure Document?

Jersey_Mikes Franchise · 2025 FDD

Answer from 2025 FDD Document

    1. The "Summary" section of Item 17(v) of the Disclosure Document, entitled "Choice of forum," is deleted in its entirety with respect to the Franchise Agreement and the Area Development Agreement.

Source: Item 23 — RECEIPTS (FDD pages 77–421)

What This Means (2025 FDD)

According to the 2025 Jersey Mikes Franchise Disclosure Document, for franchisees in Illinois, the "Summary" section of Item 17(v), entitled "Choice of forum," is entirely deleted with respect to both the Franchise Agreement and the Area Development Agreement. This means that the standard provisions regarding where legal disputes must be resolved, as typically outlined in the FDD, do not apply to Jersey Mikes franchisees in Illinois.

This deletion is due to the Illinois Attorney General's Office requiring amendments to franchise documents to ensure consistency with Illinois law, specifically the Franchise Disclosure Act of 1987. The Act aims to protect franchisees by ensuring certain rights and preventing them from waiving compliance with Illinois law.

For a prospective Jersey Mikes franchisee in Illinois, this modification is significant. It means that the franchisee is not bound by the standard forum selection clause in the franchise agreement, which might have required disputes to be resolved in a specific location (often New Jersey, where Jersey Mikes is based). Instead, Illinois law will govern the venue for resolving disputes, potentially allowing franchisees to pursue legal action in Illinois, which can be more convenient and cost-effective. This change aims to protect the franchisee's rights and ensure fair legal proceedings within the state of Illinois.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.