Under what condition will the failure to commence operation of a Jersey Mikes franchise not be considered a default?

The 2025 Jersey Mikes Franchise Disclosure Document states that a franchisee will be in default if they abandon, fail, or refuse to actively operate the franchised restaurant for two days in any twelve-month period. However, this is not considered a default if the restaurant has been closed for a purpose approved by Jersey Mikes.

This means that if a Jersey Mikes franchisee closes their restaurant for a reason that has been pre-approved by the franchisor, such as for renovations or a temporary emergency, it will not be considered a breach of the franchise agreement. This provides some flexibility for franchisees to manage unforeseen circumstances without immediately risking their franchise.

It is important for prospective Jersey Mikes franchisees to understand the specific conditions under which a closure would be approved. They should discuss with the franchisor what types of situations would warrant an approved closure and what documentation or procedures are required to obtain that approval. This will help avoid any misunderstandings or potential defaults in the future.