Are there any requirements for a Jersey Mikes franchisee to renew or extend the Area Development Agreement?
Jersey_Mikes Franchise · 2025 FDDAnswer from 2025 FDD Document
mpany's right to assign. |
| Provision | Section in Area Development Agreement | Summary |
|---|---|---|
| k. Transfer by | Section 20 | Any voluntary or invo luntary transfer of r ights in the Area Development Agreement or the assets of or ownership interest in franchisee no matter how effected. |
| Franchisee – defined | ||
| 1. Franchisor approval of transfer by Franchisee | Section 8 | You only may Transfer your rights with Company's written approval in its sole and absolute discretion. |
| m. Conditions for Franchisor's approval of transfer | Section 8.2 | Approval conditions may include, but are not limited to: your being in full compliance with agreements with Company and affiliates; transferee signs Company's then current form of Area Development Agreement and Franchise Agreements and related agreements for each of your Restaurants for your unexpired term; transferee releases Company from liability for your representations to transferee; transferee's Principals guaranty transferee's obligations to Company; transferee successfully completes Company's Area Developer training program, if any; transferee applies for accep tance as a Jersey Mike's developer; transferee demonstrates that it has the skills, qualifications, ethics, moral values and economic resources to develop Jersey Mike's restaurants; if transferee is an existing Jersey Mike's franchisee, transferee must be approved by Franchisor, in its sole and absolute discretion, for growth; Company receives a $5,000 transfer fee for Area Development Agreement and a $5,000 transfer fee for each Franchised Restaurant transferred; and, you and your affiliates and your |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 57–64)
What This Means (2025 FDD)
Based on the 2025 Franchise Disclosure Document, the excerpts provided do not contain specific details on the requirements for renewal or extension of the Area Development Agreement for Jersey Mikes. However, the document does outline conditions for the transfer of the Area Development Agreement.
Specifically, a franchisee can only transfer their rights with Jersey Mike's written approval, which is at the company's sole discretion. Conditions for approval may include the franchisee being in full compliance with all agreements, the transferee signing the current Area Development Agreement and Franchise Agreements for the unexpired term, and the transferee releasing Jersey Mike's from any liability for the transferor's representations. The transferee must also have the skills, qualifications, ethics, moral values, and economic resources to develop Jersey Mike's restaurants. If the transferee is an existing franchisee, they must be approved for growth. A $5,000 transfer fee is required for the Area Development Agreement and another $5,000 for each transferred restaurant.
Because the FDD excerpts do not explicitly state the requirements for renewing or extending the Area Development Agreement, prospective franchisees should directly ask Jersey Mike's franchisor about the conditions and processes involved in renewing or extending their Area Development Agreement. This information is crucial for long-term planning and investment decisions.