Under what circumstances might Jersey Mikes waive payments to the National Media Fund for franchisees?

According to Jersey Mikes' 2025 Franchise Disclosure Document, the franchisor has the discretion to waive National Media Fund payments for certain locations. Specifically, Jersey Mikes may waive these payments, in whole or in part, for restaurants with limited access, such as those located in resorts, stadiums, hospitals, airports, casinos, college campuses, and highway rest stops. This waiver also includes waiving their participation in such programs.

This provision offers a potential benefit to franchisees who operate in locations where traditional advertising through the National Media Fund may be less effective. For example, a Jersey Mikes located within a hospital might benefit more from targeted, local marketing efforts rather than national campaigns. The decision to waive these fees rests solely with Jersey Mikes, providing them with flexibility based on the specific circumstances of each location.

Furthermore, Jersey Mikes retains the right to reduce or forgive amounts owed to the National Media Fund by franchisees in other situations. If a franchisee is facing financial difficulties and is unable to make timely payments, Jersey Mikes may compromise the amount owed and redirect payments to its Continuing Royalty Fee account instead of the National Media Fund. This demonstrates a willingness to work with franchisees who are struggling financially, although it is not guaranteed.

It's important for prospective franchisees to understand that while these waivers and reductions are possible, they are not guaranteed. Franchisees should discuss the specific advertising and marketing strategies for their location with Jersey Mikes and understand the conditions under which waivers may be granted. This will help them to accurately forecast their potential advertising expenses and develop a comprehensive business plan.