Under what conditions can the Holder of the Jersey Mikes Note grant extensions or renewals?

According to Jersey Mike's 2025 Franchise Disclosure Document, the Holder, Jersey Mike's Franchise Systems, LLC, can grant extensions or renewals of the Note if there is an agreement in writing. This agreement must be signed by the Maker (the borrower) and the holders of a majority of the aggregate principal amount of the Notes then outstanding.

This means that for Jersey Mike's to modify the terms of the loan, such as extending the payment period or renewing the note, it requires a formal written agreement. This agreement needs to be endorsed not only by the borrower but also by those holding a majority stake in the outstanding principal amount of the notes. This requirement protects the interests of all parties involved, ensuring that significant changes to the loan terms are mutually agreed upon.

This condition is typical in financial agreements to ensure transparency and protect the interests of all parties. It prevents unilateral changes to the loan terms by the lender and provides a mechanism for collective decision-making among the noteholders. For a potential franchisee, this indicates that any modifications to their financing arrangements would require a formal, documented agreement with the necessary consents, providing a level of security and predictability.