Under the Jersey Mikes Development Agreement, what happens to rights not expressly granted to the Developer?

According to the 2025 Jersey Mikes Franchise Disclosure Document, the Development Agreement does not grant the Developer any rights to use Jersey Mike's Marks or any of Jersey Mike's trade secrets, proprietary, or confidential information. Furthermore, the agreement does not grant the Developer any rights to any copyright or patent which Jersey Mikes now owns or may own in the future. These rights are only granted under the Franchise Agreements to be signed by Jersey Mikes and the Developer.

This means that the Development Agreement focuses solely on the developer's right (option) and obligation to open a certain number of Jersey Mike's locations within a specific territory, according to a set schedule. It allows the developer to secure the rights to develop a territory without immediately granting the full rights and responsibilities of a franchisee. The actual rights to operate a Jersey Mike's restaurant, including using the brand's trademarks, operational methods, and proprietary information, are conveyed only upon signing individual Franchise Agreements for each location.

For a prospective Jersey Mikes developer, this distinction is important. The Development Agreement secures the territory and development schedule, but it does not allow the developer to begin operating restaurants. The developer must understand that they cannot use Jersey Mike's intellectual property or operate a restaurant until a Franchise Agreement is signed for each specific location. This staged approach allows both Jersey Mikes and the developer to assess each location individually before fully committing to a franchise relationship.