What is the relationship between the assistance provided by Jersey Mikes before opening, as described in Item 11, and the franchisee's obligations regarding site selection in Item 9?
Jersey_Mikes Franchise · 2025 FDDAnswer from 2025 FDD Document
equired to provide you with any assistance.
- A. Before you open the Franchised Restaurant, Company (or its designee(s) or Area Directors) will:
-
- Provide you with written notice of approval or disapproval of the proposed site within 15 Business Days after receiving your written proposal. A "Business Day" means any day except Saturday, Sunday or any other day on which commercial banks located in Manasquan, New Jersey are authorized or required by law to be closed for business or Company's principal office is closed for business (Sections 3.2 and 31)
-
- Use reasonable efforts to help analyze your market area, determine site feasibility and to assist in the designation of the franchise location; however, it is your sole responsibility to undertake site selection activities and otherwise secure, with Company's written approval, the Premises and Company does not guarantee the success of any site or location. You are required to pay a Real Estate and Construction Fee in the amount of $5,000 when you sign a lease for your Restaurant for Company's assistance with the real estate and construction processes. (Section 3.4)
-
- Approve the lease of the Premises in writing, including the language required by Company as outlined in the Franchise Agreement. (Section 3.3)
-
- Train you, if you are an individual, or your Controlling Principal if you are an entity, your designated and approved manager, and your designated and approved shift supervisors before beginning operation of the Franchised Restaurant as described in this Item 11 below. (Section 5.1) Company does not charge for this training or service; however, you and your employees' expenses of attending this program, including travel costs, room and board expenses and employees' salaries will be your sole responsibility. Training occurs at Company's headquarters
What This Means (2025 FDD)
According to Jersey Mikes's 2025 Franchise Disclosure Document, Item 11 outlines the assistance Jersey Mikes provides to franchisees before they open their restaurant. Specifically, Jersey Mikes will provide written notice of approval or disapproval of the proposed site within 15 business days of receiving the franchisee's written proposal. Jersey Mikes will also use reasonable efforts to help analyze the franchisee's market area and determine site feasibility. However, the FDD states that it is ultimately the franchisee's sole responsibility to undertake site selection activities and secure the premises with Jersey Mikes's written approval. Jersey Mikes does not guarantee the success of any site or location. Franchisees are required to pay a $5,000 Real Estate and Construction Fee for Jersey Mikes's assistance with real estate and construction processes when they sign a lease for their restaurant. Jersey Mikes must also approve the lease in writing.
This means that while Jersey Mikes offers assistance with site selection, the franchisee bears the primary responsibility for finding and securing a suitable location. The franchisee must propose a site, and Jersey Mikes has the right to approve or disapprove it. The franchisee also pays a $5,000 fee for assistance with real estate and construction. This fee suggests that Jersey Mikes provides some level of support and expertise in these areas, but the final decision on site selection rests with the franchisee, making due diligence crucial.
Item 9, referenced in Item 11, likely contains further details regarding the site selection criteria and approval process. Item 11 also mentions that Jersey Mikes may modify the system as it determines appropriate, as described in Section 9, which could include changes to site selection guidelines or requirements. Therefore, prospective franchisees should carefully review Item 9 and any related sections to fully understand their obligations and Jersey Mikes's requirements for site selection.
In summary, Jersey Mikes provides some assistance and guidance in site selection, but the franchisee is ultimately responsible for finding and securing an appropriate location. The $5,000 fee covers assistance with real estate and construction, and Jersey Mikes retains the right to approve or disapprove the proposed site and the lease agreement. Franchisees should conduct thorough market research and due diligence to ensure the chosen location has the best chance of success.