During the term of the Jersey Mikes Area Development Agreement, what actions are prohibited regarding competition?
Jersey_Mikes Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section in Area Development Agreement | Summary |
|---|---|---|
| q. Non-competition | Sections 9.3 and 9.8 | You must not divert or attempt to divert any business or customer to a competitor, or perform any act which may harm the goodwill associated with the Marks and the System; or own or otherwise have any interest in any competitive business (including a business you currently operate) specializing in dispensing, promoting or selling submarine-type sandwiches or prepared food products or services the same as or similar to any product or service provided through the System. You will also be bound by and comply with the covenants in ea ch Franchise Agreement you sign with Company. The covenants apply even if you have transferred your interest in the Area Development Agreement. |
| covenants during the |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 57–64)
What This Means (2025 FDD)
According to Jersey Mikes's 2025 Franchise Disclosure Document, during the term of the Area Development Agreement, franchisees are restricted from engaging in activities that could harm the Jersey Mike's brand or divert business to competitors. Specifically, franchisees must not divert or attempt to divert any business or customer to a competitor. They are also prohibited from performing any action that may harm the goodwill associated with Jersey Mike's marks and the System.
Furthermore, franchisees are not allowed to own or otherwise have any interest in any competitive business. This includes businesses that specialize in dispensing, promoting, or selling submarine-type sandwiches or prepared food products or services that are the same as or similar to those provided through the Jersey Mike's system. These restrictions are designed to protect Jersey Mike's market position and brand reputation.
It's important to note that these non-competition covenants apply even if the franchisee has transferred their interest in the Area Development Agreement. Additionally, franchisees are bound by and must comply with the covenants in each Franchise Agreement they sign with Jersey Mikes, reinforcing the commitment to avoid competitive activities throughout their association with the brand.