Under what circumstances might Jersey Mikes grant permission for relocation of a Franchised Restaurant within the Franchisee's Designated Area?
Jersey_Mikes Franchise · 2025 FDDAnswer from 2025 FDD Document
gh Franchisee may accept orders from outside its Designated Area which Franchisee does not solicit. If the lease for the site of the Franchised Restaurant expires or ter minates without fa ult of F ranchisee, or if the site is destroyed, condemned or otherwise rendered unusable, or if in the judgment of Franchisor there is a change in character of the location of the Franchised Restaurant sufficiently detrimental to its business potential to warrant its relocation, Franchisor may grant permission for relocation of the Franchised Restaurant within Franchisee's Designated Area to a location and site acceptable to F ranchisor. In no event shall Franchisor's approval of a location be interpreted as a guarantee of success for such location. Any such relocation shall be at Franchi see's sole expense and Franchisor shall have the right to charge Franchisee for any costs incurred by Franchisor, and a fee of Five Thousand Dollars ($5,000.00) for services provided to Franchisee, in connection with any relocation of the Franchised Restaurant, in addition to a Grand Re-Opening Advertising Fee of up to Five Thousand Dollars ($5,000.00) (see Section 10.3).
- 3.2 Franchisee will be responsible for purchasing or leasing a suitable site for the Franchised Restaurant working with a real estate broker approved by Franchisor. Prior to the acquisition by lease or purchase of any site for the Premises, Franchisee shall submit a description of the proposed site to Franchisor, together with a letter of intent or other evidence satisfactory to Franchisor which confirms Franchisee's favorable prospects for obtaining the pro posed site. I f Franchisor does not provide written notice of its approval or disapproval of
Source: Item 22 — CONTRACTS (FDD page 77)
What This Means (2025 FDD)
According to Jersey Mikes's 2025 Franchise Disclosure Document, a franchisee may be permitted to relocate their restaurant within their designated area under specific circumstances. Jersey Mikes may grant permission for relocation if the current lease expires or terminates without fault of the franchisee, or if the site is destroyed, condemned, or otherwise rendered unusable. Additionally, relocation may be approved if Jersey Mikes determines that there is a detrimental change in the character of the location that significantly impacts the business potential. Any relocation is subject to Jersey Mikes's approval of the new location and site.
It's important to note that any such relocation will be at the franchisee's sole expense. Furthermore, Jersey Mikes has the right to charge the franchisee for any costs incurred by Jersey Mikes, along with a fee of $5,000 for services provided in connection with the relocation. In addition to these costs, Jersey Mikes may also charge a Grand Re-Opening Advertising Fee of up to $5,000.
Prior to leasing or purchasing a new site, the franchisee must submit a description of the proposed site to Jersey Mikes, along with a letter of intent or other satisfactory evidence confirming the franchisee's prospects for obtaining the site. Jersey Mikes has 15 business days to provide written notice of approval or disapproval of the proposed site; otherwise, the request is deemed disapproved. Even with approval, Jersey Mikes does not guarantee the success of the new location.