Under what conditions does Jersey Mikes require a general release from the franchisee and their owners?
Jersey_Mikes Franchise · 2025 FDDAnswer from 2025 FDD Document
oved by Franchisor, in its sole and absolute discretion, for growth;
- (i) Franchisor receives a transfer fee of Five Thousand Dollars ($5,000.00) for services related to approving the Transfer of the Development Agreement, and Five Thousand Dollars ($5,000.00) for each Franchise Agreement transferred to the transferee;
- (j) Developer and its Affiliates and their respective Principals and Guarantors provide to Franchisor an unconditional, general release of all claims it may have against Franchisor, its Affiliates, and their respective officers, directors, shareholders, partners and employees;
Source: Item 22 — CONTRACTS (FDD page 77)
What This Means (2025 FDD)
According to Jersey Mikes's 2025 Franchise Disclosure Document, a general release of claims is required from the franchisee, their affiliates, principals, and guarantors under specific circumstances related to the transfer of a Development Agreement or a franchise.
Specifically, when a Developer seeks to transfer their Development Agreement, Jersey Mikes requires that the Developer, their Affiliates, Principals, and Guarantors provide an unconditional, general release of all claims they may have against Jersey Mikes, its Affiliates, and their respective officers, directors, shareholders, partners, and employees. This release must be provided to Jersey Mikes as a condition of approving the transfer of the Development Agreement.
Similarly, in the context of transferring a franchise, Jersey Mikes mandates that the Franchisee, its Affiliates, and their respective Principals and Guarantors provide an unconditional, general release of all claims they may have against Jersey Mikes, its Affiliates, and their respective officers, directors, shareholders, partners, and employees. This requirement ensures that upon the transfer of the franchise, Jersey Mikes is protected from any potential legal claims arising from the previous franchisee's operation of the business. This is a fairly standard practice in franchising to ensure a clean break between the franchisor and the outgoing franchisee.