Under what circumstances is a Jersey Mikes franchisee permitted to close the Franchised Restaurant?
Jersey_Mikes Franchise · 2025 FDDAnswer from 2025 FDD Document
- e.
Abandons or fails or refuses to actively operate the Franchised Restaurant for two (2) days in any twelve (12) month period, unless the Franchised Restaurant has been closed for a purpose approved by Franchisor, or fails to relocate to approved Premises within an approved period of time following expiration or termination of the lease for the Premises;
Source: Item 22 — CONTRACTS (FDD page 77)
What This Means (2025 FDD)
According to the 2025 Jersey Mikes Franchise Disclosure Document, a franchisee can face repercussions for failing to actively operate their restaurant. Specifically, if a Jersey Mikes franchisee abandons or refuses to actively operate the Franchised Restaurant for two days within a twelve-month period, it constitutes grounds for action by the franchisor.
However, this rule has an exception. The franchisee is permitted to close the restaurant if the closure is for a purpose that has been explicitly approved by Jersey Mikes. This implies that franchisees must seek and obtain approval from Jersey Mikes for any planned closures to avoid being in violation of the franchise agreement.
This clause ensures that Jersey Mikes franchisees maintain consistent operation and uphold the brand's reputation. It also protects the franchisor from potential losses due to prolonged or unapproved closures. A prospective franchisee should clarify with Jersey Mikes what constitutes an 'approved purpose' for closure to fully understand their obligations and rights under the franchise agreement.