Which sections of the Jersey Mikes Franchise Agreement or Area Development Agreement detail the franchisee's obligation regarding fees?
Jersey_Mikes Franchise · 2025 FDDAnswer from 2025 FDD Document
| Obligation | Section in Franchise Agreement or Area Development Agreement | Item in Disclosure Document |
|---|---|---|
| f. Fees | Sections 1, 3, 5, 10, 11, 12, 13, 15, 19, 22, 23 and 26; Area Development Agreement, Sections 2 and 8.2. | Items 5 and 6 |
Source: Item 9 — FRANCHISEE'S OBLIGATIONS (FDD pages 32–33)
What This Means (2025 FDD)
According to Jersey Mikes's 2025 Franchise Disclosure Document, a franchisee's obligations regarding fees are detailed in several sections of both the Franchise Agreement and the Area Development Agreement. Specifically, the Franchise Agreement addresses fees in Sections 1, 3, 5, 10, 11, 12, 13, 15, 19, 22, 23, and 26. For franchisees entering into an Area Development Agreement, the relevant sections are 2 and 8.2.
These sections likely cover various types of fees that a Jersey Mikes franchisee will encounter throughout the term of their agreement. These could include initial franchise fees, royalty fees, advertising fees, and other ongoing or periodic payments. It is important to note that Item 5 and Item 6 of the Disclosure Document also provide information pertaining to these fees.
A prospective Jersey Mikes franchisee should carefully review each of these sections within both agreements to fully understand their financial obligations. Understanding when each fee is due, how it is calculated, and under what circumstances it may change is crucial for financial planning and ensuring compliance with the franchise agreement. Consulting with a franchise attorney to review these sections is advisable.