What is a required condition for a Jersey Mikes developer to transfer their rights under the Development Agreement?
Jersey_Mikes Franchise · 2025 FDDAnswer from 2025 FDD Document
Developer or its Principals only may Transfer its rights under this Development Agreement or in the Developer itself, if it also assigns to the transferee all of its interests under each Franchise Agreement entered into according to this Agreement. Any Asset Transfer shall be subject to Franchisor's prior written consent, in its sole and absolute discretion. Franchisor may condition its consent on compliance with certain requirements, including, without limitation, any of the following (which Developer agrees are reasonable):
Source: Item 22 — CONTRACTS (FDD page 77)
What This Means (2025 FDD)
According to Jersey Mike's 2025 Franchise Disclosure Document, a Jersey Mike's developer can only transfer their rights under the Development Agreement if they also assign all of their interests under each Franchise Agreement entered into according to the Development Agreement to the transferee. This means that the developer cannot simply transfer the development rights without also transferring the existing franchise agreements associated with those rights.
Additionally, any transfer of rights is subject to Jersey Mike's prior written consent, which they may grant or deny at their sole and absolute discretion. Jersey Mike's may also impose certain requirements as conditions for granting consent to the transfer. These requirements are deemed reasonable by the agreement.
These conditions ensure that any new developer taking over the development rights is also committed to operating the existing Jersey Mike's franchises in accordance with the brand's standards. This protects the integrity of the Jersey Mike's brand and the stability of the franchise system. The franchisor's control over transfers is a common practice in franchising, allowing them to maintain quality control and ensure that new franchisees or developers meet their standards.