Does Jersey Mikes reserve the right to place company-owned or franchised restaurants at non-traditional venues within my Designated Area?
Jersey_Mikes Franchise · 2025 FDDAnswer from 2025 FDD Document
Under the Franchise Agreement, you are granted the right to operate a JERSEY MIKE'S Restaurant at a specific location ("Designated Area") described in the Franchise Agreement. Company and its affiliates will not, as long as the Franchise Agreement is in effect and you are not in default, enfranchise or operate a Company-owned or franchised JERSEY MIKE'S Restaurant, within your Designated Area as assigned in the Franchise Agreement, with the following exception: Company reserves the right to place company-owned or franchised Restaurants at "non-traditional venues," such as a irports, casinos, arenas, hospitals, hotels, malls, military installations, national parks, schools, stadiums and theme parks, within your Designated Area. Company may also acquire or be sold to a competing franchise system, which may or may not include restaurants in your Designated Area.
You will not receive an exclusive territory. You may face competition from other franchisees, from outlets that Company owns, or from other channels of distribution or competitive brands that Company controls.
The Designated Area typically comprises a 0.5 to 1 mile radius from the front door of the Franchised Restaurant. At Company's sole discretion, the Designated Area could be smaller if there is a densely populated urban area, a readily definable market area like a resort or boardwalk, a specific facility (stadium, hospital, airport, casino, etc.) or a natural boundary like a body of water, bridge or expressway. The Designated Area will be determined by Company prior to signing the Franchise Agreement if Company has approved the location of your Franchised Restaurant prior to execution of the Franchise Agreement. If your Franchised Restaurant location has not been approved by Company at the time you sign the Franchise
Source: Item 12 — TERRITORY (FDD pages 51–53)
What This Means (2025 FDD)
According to Jersey Mikes's 2025 Franchise Disclosure Document, Jersey Mikes retains the right to establish company-owned or franchised restaurants at non-traditional venues within a franchisee's designated area. These non-traditional venues include locations such as airports, casinos, arenas, hospitals, hotels, malls, military installations, national parks, schools, stadiums, and theme parks. This reservation exists as long as the Franchise Agreement is active and the franchisee is not in default.
This clause means that even though a franchisee is granted a designated area, Jersey Mikes can still open additional locations within that area if they are at non-traditional venues. This could potentially lead to increased competition for the franchisee within their own designated area, as these non-traditional locations could draw customers away from the franchisee's restaurant.
It is important for prospective franchisees to understand that they will not receive an exclusive territory and may face competition from other franchisees, company-owned outlets, or other channels of distribution controlled by Jersey Mikes. The designated area typically ranges from a 0.5 to 1 mile radius from the restaurant, but Jersey Mikes has the discretion to make it smaller based on factors like population density or specific facilities. Franchisees should carefully consider the potential impact of these non-traditional venues on their business before signing the Franchise Agreement.