What is the role of the Controlling Principal in ensuring compliance with the Jersey Mikes Franchise Agreement?
Jersey_Mikes Franchise · 2025 FDDAnswer from 2025 FDD Document
The JERSEY MIKE'S Franchised Restaurant is to be at all times under the direct on-premises supervision of your Controlling Principal, or a competent employee acting as full-time manager or shift supervisor who has satisfactorily completed Company's initial training program and has been approved in writing by Company. "Controlling Principal" as used in this Disclosure Document means a Principal who is designated by, and owns at least 10% equity interest in, you (if you're an entity) and approved by Company as the individual who is responsible for operating your Restaurant and causing you to comply with the Franchise Agreement. "Principal" means your, or your affiliate's, officers and directors, partners or members, and persons holding an ownership interest in you (if you're an entity) or your affiliate, in the Franchise Agreement or the assets of your Restaurant. You will at all times faithfully, honestly and diligently perform your obligations arising under the Franchise Agreement and will not engage in any business or other activities that will conflict with these obligations. Company may condition the approval of a new designated manager or Controlling Principal upon the individual's successful completion of Phase II of Company's initial training program.
You, or your Controlling Principal (if you are operating as a business entity), or a manager whom you have designated and Company has approved, must devote full-time energy and best efforts to the management and ope ration of the Fr anchised Restaurant, unless otherwise approved in writing by Company. Your Controlling Principal must be approved by Company and must satisfactorily complete all required training Company offers.
Source: Item 15 — OBLIGATION TO PARTICIPATE IN THE ACTUAL OPERATION OF THE FRANCHISED RESTAURANT (FDD page 56)
What This Means (2025 FDD)
According to Jersey Mike's 2025 Franchise Disclosure Document, the Controlling Principal plays a vital role in ensuring the franchise operates according to the Franchise Agreement. The Controlling Principal, who must own at least a 10% equity interest and be approved by Jersey Mike's, is responsible for operating the restaurant and ensuring compliance with the Franchise Agreement. This individual must be designated by the franchisee (if the franchisee is a business entity) and approved by Jersey Mike's.
The Controlling Principal is expected to provide direct, on-premises supervision of the Jersey Mike's restaurant. Alternatively, a competent employee can act as a full-time manager or shift supervisor, provided they have completed Jersey Mike's initial training program and received written approval from the company. The franchisee, or the Controlling Principal, must devote full-time energy and their best efforts to managing and operating the franchised restaurant, unless Jersey Mike's provides written approval otherwise.
Jersey Mike's may require a new designated manager or Controlling Principal to successfully complete Phase II of the company's initial training program. This highlights the importance Jersey Mike's places on proper training and oversight to maintain brand standards and operational consistency. The Controlling Principal's active involvement and adherence to the Franchise Agreement are crucial for the success and integrity of the Jersey Mike's franchise.