Can Jersey Mikes require a franchisee to modernize or remodel their restaurant?
Jersey_Mikes Franchise · 2025 FDDAnswer from 2025 FDD Document
greements comply with and are enforceable under applicable laws.
9. MODIFICATION OF THE SYSTEM
Franchisor reserves the right to change or modify the System in its sole and absolute discretion by adopting and using new or modified System Standards, trade names, trademarks, service marks, copyrighted materials, or specifications or standards for menu items, products, services, building design, equipment or new techniques and Franchisee shall accept, adopt and make any such mandatory changes at the Restaurant, as if they were part of this Agreement at the time of its execution. Franchisee will make such expenditures as such changes or modifications in the System as Franchisor may reasonably require, utilizing a Franchisor-approved licensed contractor, provided the cost of capital improvements, new equipment and remodeling does not exceed One Hundred Fifty Thousand Dollars ($150,000.00) during the term of this Agreement, and the cost of updates and upgrades of Franchisee's point-of-sale system ("POS System") does not exceed Fifty Thousand Dollars ($50,000) during the term of this Agreement. Franchisee shall not change, modify or alter the System in any way.
10. ADVERTISING
Recognizing the value of advertising and the importance of the standardization of advertising and promotion to further the goodwill and the public image of JERSEY MIKE'S Restaurants, Franchisee agrees as follows:
10.1 Franchisee will submit to Franchisor or its designated agency, for its prior approval, all promotional materials and advertising to be used by Franchisee, including, but not limited to, newspapers, radio, television, and internet advertising, direct mail advertising, specialty and novelty items, signs, boxes, napkins, bags and wrapping papers, as well as any advertisement for the sale of the Restaurant. If Franchisor does not provide written approval of said advertising and promotional materials within fifteen (15) days after receiving such materials, said materials shall be deemed disapproved.
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 maintains the right to modify the System, including implementing new or modified System Standards, trade names, trademarks, service marks, copyrighted materials, specifications, or standards for menu items, products, services, building design, equipment, or new techniques. Franchisees are obligated to accept and implement these mandatory changes at their restaurants as if they were part of the original agreement.
This obligation extends to making expenditures for such changes or modifications as Jersey Mike's may reasonably require, utilizing a franchisor-approved licensed contractor. However, there are financial limitations on these expenditures. The cost of capital improvements, new equipment, and remodeling cannot exceed $150,000 during the term of the agreement. Additionally, the cost of updates and upgrades to the franchisee's point-of-sale system (POS System) cannot exceed $50,000 during the term of the agreement.
Furthermore, as a condition for renewal of the franchise agreement, Jersey Mike's may require franchisees to upgrade or modify their restaurants to comply with the franchisor's then-current requirements for image, appearance, decoration, furnishing, equipping, and stocking. This ensures that all Jersey Mike's locations maintain a consistent brand image and meet current standards. Franchisees must comply with these requirements to secure renewal of their franchise.