Under what circumstances, other than earlier termination, will the Jersey Mike's Development Agreement expire?

According to Jersey Mike's 2025 Franchise Disclosure Document, the Development Agreement, unless terminated earlier according to its terms, will expire when Jersey Mike's accepts and executes the Franchise Agreement, or on the date when both the Developer and the Landlord execute the lease, whichever is later. This expiration applies to the last Jersey Mike's Restaurant that is scheduled to be established as per the Development Schedule. This means the agreement remains active until the final restaurant planned under the development agreement is up and running with a signed franchise agreement and a lease in place.

For a prospective Jersey Mike's developer, this clause provides clarity on the duration of the development rights. It ensures that the developer has the right to establish the agreed-upon number of restaurants, as long as they adhere to the Development Schedule. The expiration is tied to the completion of the development plan, not a fixed date, which offers some flexibility.

However, it also places the onus on the developer to meet the milestones in the Development Schedule. Any delays in securing locations, completing lease negotiations, or obtaining franchise agreements could potentially impact the timeline and the overall term of the agreement. Therefore, careful planning and execution are crucial for a Jersey Mike's developer to fully realize the benefits of the Development Agreement.