During the term of the Jersey Mikes franchise, what specific actions are franchisees prohibited from doing regarding competitors?
Jersey_Mikes Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section in Franchise Agreement | Summary |
|---|---|---|
| q. Non-competition covenants during the term of the franchise | Section 16.3 | 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 business (including a business you currently operate) specializing in the sa le of submarine-type sandwiches or prepared food products the same as or similar to any product or service provided through the System. |
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 franchise term, franchisees are subject to non-competition covenants as detailed in Section 16.3 of the Franchise Agreement. Specifically, a franchisee must not divert or attempt to divert any business or customer to a competitor.
Additionally, franchisees are prohibited from performing any action that may harm the goodwill associated with Jersey Mike's marks and the System. This encompasses a broad range of activities that could negatively impact the brand's reputation or customer loyalty.
Furthermore, franchisees are restricted from owning or having any interest in any business, including businesses they currently operate, that specialize in the sale of submarine-type sandwiches or prepared food products that are the same as or similar to those provided through the Jersey Mikes system. This prevents franchisees from directly competing with Jersey Mikes while they are operating under the franchise agreement.