After the termination of a Jersey Mikes franchise agreement, for how long is the franchisee restricted from owning a competing business?
Jersey_Mikes Franchise · 2025 FDDAnswer from 2025 FDD Document
- 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, a franchisee is restricted from engaging in a competing business for a period of two years after the termination, transfer, or expiration of the franchise agreement. This restriction applies to the franchisee and their immediate family members.
Specifically, the franchisee and their immediate family are prohibited from owning, maintaining, engaging in, or having any interest in any business that specializes in the sale of submarine-type sandwiches or prepared food products similar to those sold within the Jersey Mikes system. This restriction is in place regardless of the cause of termination, transfer, or expiration of the agreement.
This non-compete clause is in place to protect Jersey Mikes's confidential information, training, and the promotional, operational, sales, and marketing methods and techniques of the franchisor and the system. The franchisee acknowledges that they will receive valuable training and confidential information during the term of the agreement, which justifies the need for the non-compete clause after the agreement ends. The restriction begins either after the termination, transfer, or expiration of the agreement, or the date upon which the franchisee complies with the covenants of the agreement, whichever is later.