Under what circumstances is the amendment to the Area Development Agreement for Jersey Mikes being signed?
Jersey_Mikes Franchise · 2025 FDDAnswer from 2025 FDD Document
ong other things, bringing an appropriate legal action or by raising the claim in a legal action or arbitration that you have initiated.
The parties have executed this Amendment as of the Effective Date below.
| Peter C | ancro, Chief Executive Officer |
|---|---|
| Date*: | |
| (*Effec | tive Date of this Amendment) |
| DEVELOPE | R: |
| By: | |
| Name/ | Γitle |
| Date: |
FRANCHISOR: A SUB ABOVE, LLC
AMENDMENT TO A SUB ABOVE, LLC AREA DEVELOPMENT AGREEMENT FOR THE STATE OF NORTH DAKOTA
| THIS AMENDMENT (this "Amendment") is made | and entered into by and betwe en A | Sub |
|---|---|---|
| Above, LLC ("Franchisor") and | _ ("Developer" or "You"). Franchison | r and |
| Developer are parties that c ertain Area Development Agreeme | ent dated, 20 | (the |
| "Development Agreement"). This Amendment is annexed | to and for ms part of the De velopi | ment |
| Agreement. This Amendment is being signed because (a) Yo | u are a resident of North Dakota and | 1 the |
| Franchised Restaurants that You will develop under the Dev | velopment Agreement will be locate | d or |
| operated in North Dakota, and/or (b) any of the offering or sa | ales activity relating to the Develop | ment |
| Agreement occurred in North Dakota. |
NORTH DAKOTA LAW MODIFICATIONS
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- The North Dakota Securities Commissioner requires that certain provisions contained in franchise documents be amended to be consistent with North Dakota law, including the North Dakota Franchise Investment Law, North Dakota Century Code Annotated Chapter 51-19, Sections 51-19-01 through 51-19-17 (1993). To the extent that this Amendment contains provisions that are inconsistent with the Development Agreement, the terms of this Amendment shall govern such inconsistency.
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- The following is added as Section 17.9 to the Development Agreement:
"NOTWITHSTANDING ANYTHING TO THE CONTRAR Y IN THIS AGREEMENT, TO THE EXTENT REQUIRED UNDER THE NORTH DAKOTA FRANCHISE INVESTMENT LAW (UNLESS PRE-EMPTED BY THE FEDERAL LAW), ANY ARBITRATION SHALL BE HELD AT A SITE TO WHICH THE PARTIES MUTUALLY AGREE."
- The following is added as Section 17.10 to the Development Agreement:
"NOTWITHSTANDING ANYTHING TO THE CONTRAR Y IN THIS AGREEMENT, TO THE EXTENT REQUIRED UNDER THE NORTH DAKOTA FRANCHISE INVESTMENT LAW, AND SUBJ ECT TO THE ARBITRATION OBLIGATIONS, DEVELOPER MAY BRING AN ACTION IN NORTH DAKOTA FOR CLAIMS ARISING UNDER THE NORTH DAKOTA FRANCHISE INVESTMENT LAW."
4.
Source: Item 23 — RECEIPTS (FDD pages 77–421)
What This Means (2025 FDD)
According to the 2025 Franchise Disclosure Document, the amendment to the Area Development Agreement for Jersey Mikes is signed under specific circumstances related to the developer's location and the location of franchise activities. For North Dakota, the amendment is signed if the developer is a resident of North Dakota, and the Franchised Restaurants they will develop under the Development Agreement will be located or operated in North Dakota, or if any of the offering or sales activity relating to the Development Agreement occurred in North Dakota. For Illinois, the amendment is signed because either the offering or sales activity relating to the Development Agreement occurred in Illinois and the Franchised Restaurants that the developer will develop under the Development Agreement will be located in Illinois, or the developer is domiciled in Illinois. For Washington, the amendment is signed because the developer is domiciled in Washington, the Franchised Restaurants they will develop will be located or operated in Washington, or any of the offering or sales activity relating to the Development Agreement occurred in Washington.
These amendments ensure that the Area Development Agreement complies with the franchise laws of specific states. The state-specific amendments address potential inconsistencies between the standard Development Agreement and state laws, giving precedence to the amendment's terms in such cases. This highlights the importance of understanding state-specific franchise regulations when entering into a development agreement with Jersey Mikes.
Jersey Mikes also provides state-specific riders to the Area Development Agreement for Maryland and Minnesota. These riders include modifications to certain sections of the Development Agreement to align with state laws. For example, the Maryland rider addresses financial assurance requirements and limitations on claims, while the Minnesota rider includes provisions related to the statute of limitations for actions under Minnesota law. These state-specific riders further emphasize the need for franchisees to be aware of and understand the legal requirements in their specific state.