factual

After the termination of the Jersey Mikes franchise agreement, what is a franchisee prohibited from doing regarding representing themselves to the public?

Jersey_Mikes Franchise · 2025 FDD

Answer from 2025 FDD Document

Upon termination or expiration, this Agreement and all rights granted hereunder to Franchisee shall forthwith terminate, and:

  • 18.1 Franchisee shall immediately cease to operate the Franchised Restaurant under this Agreement (unless Franchisor directs Franchisee otherwise in connection with Franchisor's exercise of Franchisor's option to purchase pursuant to Section 18.11), and shall not thereafter, directly or indirectly, represent to the public or hold itself out as a present or former franchisee of Franchisor.

Source: Item 22 — CONTRACTS (FDD page 77)

What This Means (2025 FDD)

According to the 2025 Jersey Mikes Franchise Disclosure Document, after the termination or expiration of the franchise agreement, a franchisee must immediately cease operating the franchised restaurant under the agreement, unless Jersey Mikes directs otherwise in connection with exercising its option to purchase the restaurant. The franchisee is prohibited from directly or indirectly representing to the public or holding themselves out as a present or former franchisee of Jersey Mikes. This means a franchisee cannot give the impression that they are still affiliated with the Jersey Mikes brand after the agreement ends.

This restriction protects Jersey Mikes' brand integrity and prevents confusion among customers. A former franchisee cannot leverage the brand's reputation or goodwill to benefit their new, independent venture. This is a standard clause in most franchise agreements to ensure consistent brand representation and prevent unfair competition.

Furthermore, the franchisee must immediately and permanently cease using any confidential information, the Marks (trade names, service marks, and trademarks), any Contact Identifiers, or any Online Presence associated with Jersey Mikes. This includes refraining from using signs, advertising materials, stationery, forms, and other articles that display the Marks associated with the Jersey Mikes system. Jersey Mikes also has the right to deactivate the franchisee's POS system, further ensuring the separation of the former franchisee from the brand's operational infrastructure.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.