Which sections of the Jersey Mikes franchise agreement, specifically related to confidentiality, non-competition, and indemnification, survive the termination or expiration of the agreement?
Jersey_Mikes Franchise · 2025 FDDAnswer from 2025 FDD Document
ta access used in connection with the Franchised Restaurant.
7. CONFIDENTIAL OPERATIONS MANUAL
- 7.1 Franchisor will provide to Franchisee during the term of the franchise online access to the Confidential Operations Manual, which may include one or more separate manuals as well as audiotapes, videotapes, computer software, compact discs, information available on an Internet site, other electronic or digital media or written materials (collectively, the "Manual") containing the System Standards and suggested specifications, standards, operating procedures and rules prescribed from time to time by F ranchisor for JERSEY MIKE'S Restaurants and information relative to other obligations of Franchisee hereunder and the operation of its Franchised Restaurant. The Manual contains proprietary information of Franchisor and shall be kept confidential by Franchisee both during the term of the franchise and subsequent to the expiration or termination of the franchise. Franchisor shall have the right to add to and otherwise modify the Manual from time to time.
- 7.2 The Manual shall at all times remain the sole property of F ranchisor and all copies in Franchisee's possession shall promptly be returned upon the expiration or other termination of this Agreement.
- 7.3 Franchisee shall at all times ensure that any copy of the Confidential Operations Manual that is available at the Premises is a current and up-to-date, and in the event of any dispute as to the contents of the Confidential Operations Manual, the terms of the master copy of the Confidential Operations Manual maintained by Franchisor at Franchisor's home office shall be controlling.
8. CONFIDENTIAL INFORMATION
- 8.1 Notwithstanding any provision to the contrary under this Agreement, it is understood and agreed that this Agreement does not grant Franchisee any right to use the Marks or to use any of Franchisor's trade secrets and/or proprietary or confidential information, other than as described below. Further, it is understood and agreed that this Agreement does not grant Franchisee any right to any copyright or patent which Franchisor now owns or may own in the future.
- 8.2 Franchisee shall divulge Franchisor's confidential information only to such of its employees as must have access to it in order to operate the Franchised Restaurant.
Source: Item 22 — CONTRACTS (FDD page 77)
What This Means (2025 FDD)
According to the 2025 Jersey Mikes Franchise Disclosure Document, several obligations related to confidentiality and non-competition survive the termination or expiration of the franchise agreement. Franchisees must keep the Confidential Operations Manual confidential both during and after the franchise term. Upon termination or expiration, franchisees must immediately cease using any Confidential Information, the Marks, any Contact Identifiers, or any Online Presence. This includes stopping the use of all signs, advertising materials, stationery, and forms displaying the Marks associated with the Jersey Mikes system.
Furthermore, for a period of two years after the termination or expiration of the agreement, franchisees and their immediate family members are restricted from owning, maintaining, engaging in, or having any interest in any business specializing in the sale of submarine-type sandwiches or prepared food products similar to those sold in the Jersey Mikes system. This restriction applies regardless of the cause of termination and is contingent upon the franchisee's compliance with the agreement's covenants.
These post-termination obligations are typical in franchising to protect the brand's confidential information, customer relationships, and market share. Prospective franchisees should carefully review these sections to understand the full scope of their responsibilities after the franchise relationship ends. It is important to note that the FDD excerpt does not explicitly detail which indemnification obligations survive termination or expiration; therefore, prospective franchisees should seek clarification from Jersey Mikes regarding this aspect of the franchise agreement.