Under what circumstances can a Jersey Mikes franchisee or their family members engage in activities otherwise prohibited by the non-compete covenant?
Jersey_Mikes Franchise · 2025 FDDAnswer from 2025 FDD Document
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 or their immediate family members are restricted from engaging 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 applies both during the term of the Franchise Agreement and for a period of two years after the agreement's expiration, transfer, or termination.
However, there is an exception to this non-compete covenant. A Jersey Mikes franchisee or their immediate family members can engage in activities otherwise prohibited by the non-compete covenant if they receive prior written approval from Jersey Mikes. This means that if a franchisee wishes to pursue a business venture that would otherwise be in violation of the non-compete agreement, they must seek and obtain explicit written consent from the franchisor.
This condition underscores the importance of maintaining open communication with Jersey Mikes regarding any potential business interests that could be construed as competitive. Obtaining written approval is crucial to avoid any legal repercussions or breach of contract issues. Franchisees should carefully document any such approvals to ensure they are protected in the event of future disputes.