What system-wide promotions and programs is a Jersey Mike's franchisee required to participate in?

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Company will require you to participate in certain system wide promotions and programs, including the Customer Loyalty Program with Text Messaging and Email Club, the Online Ordering Program, and the Food and Labor Management Program. These Programs are part of the POS Software Licensing and Support Package, which currently costs $395/month, but may increase up to $795/month within the 12 months following the issuance date of this Disclosure Document. Company also requires you to pay a fee for secure network access and monitoring, which currently costs $31.85 per month, but may increase up to $39.85 per month within 12 months following the issuance date of this Disclosure Document.. These fees are subject to change. Company may collect these fees via your automatic clearing house (ACH) account, or you may be required to pay them through the designated vendor. Duri ng 2024, C ompany received $14,825,694 in payments from franchisees for these fees, which constituted 5.3% of Company's total revenue of $279,944,629 during the year.

Under the Customer Loyalty Program ("Jersey Mike's Shore Points®"), customers earn free food items after a certain number of purchases. The administrative costs of the Customer Loyalty Program are included in the monthly Software Licensing and Support Fees Package. You must pay the minimal costs of the plastic loyalty cards, which you purchase from Company, and the costs of the free items awarded under the Shore Points® program, which you must provide to customers. Company or local marketing

cooperatives may choose to send text messages to those customers who sign up for text messaging at no cost to you. However, if you choose to send text messages to your customer lists, you will pay local text messaging fees, currently at $0.025/message; this fee is subject to change. Customers who provide their email addresses to Company occasionally receive special offerings from Company, including free food items upon presentation of a valid email coupon at your Jersey Mike's Restaurant; you must pay for the costs of the free food items.

Under the Online Ordering Program, customers place their orders online designating from which restaurant they will pick up the order. The costs of this Program are included in the monthly Software Licensing and Support Fees Package. However, you will pay Company an additional $0.2921 per online transaction and 3.74% of the sale of each such transaction to cover credit card, patent licensing, ecommerce, sales tax software, and authentication fees. In addition, you may be required to pay Company $0.2921 per third-party transaction to cover the costs associated with third party order integration, software development and maintenance. These fees are subject to change.

Under the Food and Labor Management Software Program, you will place your food, beverage, paper products, snack items, and cleaning product orders with outside vendors through this program. You will enter your employee work schedules on this program and the employees will log their actual hours worked on the POS system, which will automatically send the information to the program. The costs of this program are included in the monthly Software Licensing and Support Fees Package.

You must participate in the Gift Card Program. Under this program, customers may purchase gift cards at your Restaurant. The purchase of gift cards is not included in your gross receipts and is debited weekly from your a count via ACH; your account is credited as gift cards are redeemed for food and beverage items. The Gift Card Program is maintained by Company's designated third party vendor. You must pay the costs of the plastic gift cards which are minimal. Company does not charge any fees relating to the Gift Card Program but collects fees for the vendors.

You must use Company's designated credit card processing company

Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 28–32)