Can Jersey Mikes require a franchisee to comply with an advertising policy?
Jersey_Mikes Franchise · 2025 FDDAnswer from 2025 FDD Document
Company has the right to direct all advertising programs including the Corporate Advertising and Development Fund, the National Media Fund and the Cooperative Advertising Funds with sole discretion over the creative concepts, materials and media used in such programs and the placement and allocation, with the purpose of such funds to maximize general public recognition and acceptance of Company Marks for the benefit of the System and Company has no obligation in administering any funds to make expenditures for you or proportionate to your payments and contributions. Company is also not required to spend any amount on advertising in the area or territory where you are located.
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- Coordinate classified telephone directory listings for the System (Section 10.7). You must maintain a business phone and must list and advertise continuously in the free classified or Yellow Pages of the local telephone directory under the listing "Restaurants" as "Jersey Mike's Subs" or other listings as deemed appropriate by Company. When more than one JERSEY MIKE'S Restaurant is served by the same commercial telephone directory, any classified advertising placed in the directory should list all JERSEY MIKE'S Restaurants operating within the distribution area of these classified directories, with each franchisee contributing an equal share per Restaurant to the cost of the listing if any cost is applicable.
Franchisor also reserve the right to require Franchisee, at Franchisee's expense, to list and advertise the Franchised Restaurant with the online directories that Franchisor periodically prescribes (such as Yelp® and Google®) or establish any other Online Presence Franchisor requires, each in accordance with Franchisor's System Standards. If Franchisor approves, in writing, the use of any social networking websites (such as LinkedIn®, Twitter®, Facebook®, Instagram® or YouTube®) in the operation of the Franchised Restaurant, or the posting of messages relating to the Franchised Restaurant on other websites (such as Yelp®), Franchisee will do so only in accordance with Franchisor's guidelines set forth in the Manual or otherwise in writing. Franchisor reserve the right to require Franchisor's approval of any message Franchisee composes for a social networking website or commentary for any other website before Franchisee posts such message or commentary.
If franchisees assigned to a cooperative do not timely agree upon the required expenditures of a cooperative advertising and promotional program, Franchisor shall have the right to determine the form and amount of the expenditures to be made through such cooperative advertising and promotional program. Franchisor may charge a fee to the cooperative for the services which it provides. At any time Franchisor may require that some or all of Franchisee's cooperative advertising payments be paid instead to the Corporate Advertising Fund.
Source: Item 16 — RESTRICTIONS ON WHAT THE FRANCHISEE MAY SELL (FDD pages 56–57)
What This Means (2025 FDD)
According to Jersey Mike's 2025 Franchise Disclosure Document, Jersey Mike's has the right to direct all advertising programs, including the Corporate Advertising and Development Fund, the National Media Fund, and the Cooperative Advertising Funds. Jersey Mike's has sole discretion over the creative concepts, materials, and media used in such programs, as well as the placement and allocation of funds. The purpose of these funds is to maximize general public recognition and acceptance of the company's marks for the benefit of the system. Jersey Mike's has no obligation to make expenditures for a franchisee or proportionate to their payments and contributions, and they are not required to spend any amount on advertising in the area or territory where a franchisee is located.
Jersey Mike's also coordinates classified telephone directory listings for the system. Franchisees must maintain a business phone and continuously advertise in the free classified or Yellow Pages of the local telephone directory under the listing "Restaurants" as "Jersey Mike's Subs" or other listings deemed appropriate by Jersey Mike's. If more than one Jersey Mike's Restaurant is served by the same commercial telephone directory, any classified advertising placed in the directory should list all Jersey Mike's Restaurants operating within the distribution area of these classified directories, with each franchisee contributing an equal share per Restaurant to the cost of the listing if any cost is applicable.
Jersey Mike's also maintains the right to require franchisees, at the franchisee's expense, to list and advertise the franchised restaurant with online directories that Jersey Mike's periodically prescribes, such as Yelp and Google, or establish any other online presence Jersey Mike's requires, each in accordance with Jersey Mike's System Standards. If Jersey Mike's approves, in writing, the use of any social networking websites in the operation of the franchised restaurant, franchisees will do so only in accordance with Jersey Mike's guidelines set forth in the Manual or otherwise in writing. Jersey Mike's reserves the right to require approval of any message a franchisee composes for a social networking website or commentary for any other website before the franchisee posts such message or commentary.
Jersey Mike's also has the right to determine the form and amount of expenditures to be made through a cooperative advertising and promotional program if franchisees assigned to a cooperative do not timely agree upon the required expenditures. Jersey Mike's may charge a fee to the cooperative for the services it provides. At any time, Jersey Mike's may require that some or all of a franchisee's cooperative advertising payments be paid instead to the Corporate Advertising Fund.