Who is responsible for losses or damages originating from the operation of a Jersey Mikes restaurant?

According to Jersey Mike's 2025 Franchise Disclosure Document, the franchisee is solely responsible for any losses or damages that occur in connection with the operation of their Jersey Mike's restaurant. This includes any claims or demands for damages to property, or for injury, illness, or death of persons that directly or indirectly result from the restaurant's operations.

This means that as a Jersey Mike's franchisee, you are responsible for covering costs associated with accidents, injuries, or property damage that occur at your restaurant. You are also obligated to protect Jersey Mike's from any claims, losses, or damages by agreeing to indemnify and hold the franchisor harmless.

To mitigate these risks, Jersey Mike's requires franchisees to maintain insurance policies that protect the franchisee, Jersey Mike's, and their affiliates against potential losses, liabilities, personal injury, death, or property damage. These policies must name Jersey Mike's Franchise Systems, LLC as an additional insured for general liability purposes and provide a 30-day notice of cancellation. The insurance must be secured before taking possession of the premises, with workers' compensation in place even earlier if employees begin training before that date. The policy must be issued by an insurance company with an A.M. Best rating of "A-" or better.

This is a fairly standard arrangement in franchising, where the franchisee typically bears the responsibility for day-to-day operational risks while adhering to the franchisor's standards and maintaining adequate insurance coverage. Prospective franchisees should carefully review the insurance requirements and ensure they can obtain sufficient coverage to protect their investment and operations.