During the term of the Jersey Mikes franchise agreement, what actions are franchisees and their immediate family members prohibited from taking that could negatively impact the Jersey Mike's brand?
Jersey_Mikes Franchise · 2025 FDDAnswer from 2025 FDD Document
- a.
Divert or attempt to divert any busi ness or c ustomer of the business fra nchised hereunder to any c ompetitor, by di rect or indire ct inducement, or disparage or otherwise speak or write negatively, directly or indirectly, of Franchisor, its affiliates, any of Franchisor's directors, officers, employees, representatives, owners, current and former franchisees or de velopers, the JERSEY MIKE's brand, the System, any JERSEY MIKE's Restaurant, any business using the Marks, any other brand or service-marked or trademarked concept of Franchisor or its affiliates, or which would subject the System to ridicule, scandal, reproach, scorn or indignity, or which would be injurious or prejudicial to the goodwill associated with Franchisor's Marks and the System, or which would constitute an act of moral turpitude.
- b.
Own, maintain, engage in, or have any interest in any business (including any business operated by Franchisee prior to entry into this Agreement) specializing in whole or in part, in the sale of submarine-type sandwiches or prepared food products the same as or similar to any product or service sold in the System.
- 16.4 Franchisee specifically acknowledges that, consistent with this Agreement, Franchisee will receive valuable training and confidential information, including without limitation, information regarding the promotional, operational, sales and marketing methods and techniques of Franchisor and the System.
Accordingly, Franchisee covenants that except as otherwise approved in writing by Franchisor, neither Franchisee nor any of Franchisee's immediate family members shall, for period of two (2) years after the expiration, Transfer or termination of this Agreement, or if later, the date upon which Franchisee complies with the covenants of this Agreement, regardless of the cause of termination, either directly or indirectly, for itself, or through, on behalf of, or in conjunction with any person, persons, partnership, corporation, limited liability company or other entity, own, maintain, engage in, or have any interest in any business
Source: Item 22 — CONTRACTS (FDD page 77)
What This Means (2025 FDD)
According to Jersey Mikes's 2025 Franchise Disclosure Document, franchisees and their immediate family members are restricted from certain actions that could harm the brand. Specifically, franchisees cannot divert or attempt to divert business to competitors, nor can they disparage Jersey Mike's, its affiliates, directors, officers, employees, representatives, owners, current and former franchisees or developers, the Jersey Mike's brand, the System, any Jersey Mike's Restaurant, any business using the Marks, or any other brand or service-marked concept of Jersey Mike's or its affiliates. These restrictions aim to protect the goodwill associated with Jersey Mike's marks and the System.
Additionally, franchisees are prohibited 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 Mike's system. This prevents franchisees from directly competing with the Jersey Mike's brand during the term of the agreement.
After the franchise agreement expires, the franchisee and their immediate family members are restricted for a period of two years from engaging in similar competitive business activities. This post-term covenant further protects Jersey Mike's from competition arising from former franchisees who have gained knowledge of the system's confidential information and operational methods.